US Equity Indexes Mixed as Powell Calms Inflation Concerns, Trump Warns Iran to Reach Deal

01:54 PM EDT, 03/30/2026 (MT Newswires) -- US equity indexes traded mixed midday Monday as government bond yields slumped after Federal Reserve Chair Jerome Powell calmed inflation concerns driven by geopolitical risks.

Meanwhile, President Donald Trump warned Iran of dire consequences if it fails to reach a ceasefire agreement with his negotiating team.

The Dow Jones Industrial Average rose 0.3% to 45,308.1. The S&P 500 fell 0.1% to 6,360.5, after trading higher earlier in the session. The Nasdaq Composite declined 0.5% to 20,844.8. All three equity gauges ended last week lower amid mounting geopolitical risks in the Middle East.

Powell said Monday inflation expectations remain well anchored after an expected short-term price shock from the conflict in Iran, noting that the longer lag with which monetary policy works allows the Federal Open Market Committee to look past brief supply shocks.

Powell emphasized the need for the FOMC to act independently of political forces and noted that the FOMC lacks the tools to deal with short-term price spikes. He said that the FOMC should remain focused on inflation expectations. "Inflation expectations do appear to be well anchored beyond the short term."

The CME FedWatch tool showed that the probability of the Fed increasing interest rates by 25 basis points plunged on Monday across April to December, compared with the end of last week. The market currently expects a 3.7% likelihood of policy tightening in December to the 3.75% to 4% target range, versus a 22% chance of a hike on Friday.

In energy news, West Texas Intermediate crude oil futures jumped 3.9% to $103.58. Brent crude futures rose 2.1% to $107.60.

Trump said the US may blow up and completely obliterate Iran's electric plants and oil wells if a deal to end the war is not reached and the Strait of Hormuz is not reopened, CNN reported. This comes as Iran contradicted the US president's claims that Tehran had agreed to "most of" the 15-point list of demands put forward by the US to end the war, describing the proposal as "unrealistic."

Trump also reported, in an interview with the Financial Times, progress in indirect talks with Tehran, adding the US could "very easily" control Kharg Island, the location of a vast majority of Tehran's crude oil exports, and "take the oil in Iran".

In US company news, Sysco (SYY) agreed to acquire Jetro Restaurant Depot in a cash-and-stock deal of about $29.1 billion in enterprise value. Sysco (SYY) shares dropped more than 14%, the worst performer on the S&P 500.

In economic news, the Dallas Fed's monthly manufacturing index fell to minus 0.2 in March from 0.2 in February, compared with expectations for a 1.5 print.

In precious metals, gold futures rose 0.7% to $4,522.5 and silver futures climbed 1% to $70.52.

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