Investors will also be looking ahead to the Federal Reserve’s March decision on Wednesday. Markets are pricing in a 99% chance of the central bank holding rates steady. “Wednesday’s meeting is of greater importance due to the recent spike in oil prices, which is likely to stoke inflation,” RGA Investments’ Rick Gardner said, adding that a potential delay to Kevin Warsh’s confirmation as Chair was also significant.
“For right now and for the foreseeable future, [Jerome] Powell is still in the driver’s seat and rates are not likely to go lower.”
He pointed out that Monday’s rebound was encouraging, but it may be too soon to call a market bottom. He said he expects the market to eventually move past the Middle East tensions and see a strong rally in the fourth quarter.
