U.S. stocks fell on 26 March, with the Dow Jones Industrial Average and the S&P 500 dropping for a third consecutive session, as investors awaited economic data to assess the Federal Reserve's policy direction.

Despite a 2.92% increase in Tesla's (NASDAQ: TSLA) stock price, the market struggled for momentum. Tesla CEO Elon Musk announced a one-month trial of fully autonomous driving technology for existing and new customers in the US. The stock rose nearly 4% this week but remains down over 28% for the year.

The Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditures Price Index (PCE), remains in focus. The report is due on Friday when US markets will be closed for Good Friday.

The index is expected to have grown by 0.4% in February with a year-on-year increase of 2.5%. Core inflation, which excludes volatile food and energy components, is expected to have risen by 0.3% last month with a year-on-year rate of 2.8%.

Stephen Massocca, Senior Vice President at Wedbush Securities, noted that significant data will be released on Friday, suggesting limited market volatility before then.

On the economic front, US durable goods orders in February exceeded expectations, and there were early signs of recovery in business equipment investment. Additionally, the US Conference Board reported that its Consumer Confidence Index remained unchanged at 104.7 in March.

The Dow Jones Industrial Average fell 31.31 points, or 0.08%, to 39,282.33. The S&P 500 index dropped 14.61 points, or 0.28%, to 5,203.58, while the Nasdaq Composite Index declined 68.77 points, or 0.42%, to 16,315.70.

After the Federal Reserve maintained its forecast for three interest rate cuts this year, the three major US indices reached new highs this week. There is growing anticipation in the market for at least a 25-basis-point rate cut by the central bank in June, with confidence rising to 59.2% from last week.

Trump Media & Technology Group saw its stock price surge by 16.1% to close at $57.99 after the company engaged in a reverse merger with a blank-check firm, reaching a high of $79.38 on its first day of trading.

McCormick & Company (NYSE: MKC) saw its stock rise by 10.52%, leading the S&P 500, due to sales and profits in the first quarter surpassing market expectations.

Western Digital Corporation saw its stock rise by 7.38% after Morgan Stanley upgraded the company's rating from "equal weight" to "overweight."

United Parcel Service (NYSE: UPS) saw its stock fall by 8.16% after announcing its outlook for 2026.

At the New York Stock Exchange, declining stocks outnumbered advancing ones by a ratio of 1.24 to 1. At the Nasdaq Stock Market, the ratio was approximately 1.34 to 1.

The S&P 500 index had 33 new 52-week highs and 1 new low, while the Nasdaq index had 122 new highs and 124 new lows.

Trading volume on the US exchanges was 10.43 billion shares, lower than the average of 12.23 billion shares over the past 20 trading days.

Trading volume for the entire week is expected to be relatively low, especially as the holiday approaches, with volumes possibly even lower.