US stock markets showed modest movement as investors positioned ahead of the Federal Reserve's policy decision. According to latest market data, S&P 500 slipped 0.1% coming off a mixed day where falling tech stocks weighed on the index, while Dow Jones Industrial Average was up 111 points, or 0.2% as of 11:15 a.m. Eastern time. Nasdaq Composite was 0.2% lower during the morning session. As reported by Associated Press, the S&P 500 added 0.2% and Dow was up 0.5% at the record high, with several AI-related stocks supporting the market recovery. Treasury yields held relatively steady with the 10-year Treasury yield remaining at 4.43%, where it was late Tuesday. The day's main event will come in the afternoon when the Fed announces its latest decision on interest rates, with widespread expectation that it will leave its main interest rate unchanged.
This marks the first Federal Open Market Committee (FOMC) meeting under new Chair Kevin Warsh, who was selected by President Donald Trump. Market participants are closely watching the Fed's decision, which is due at 2:00 p.m. ET. The central bank is broadly expected to leave its benchmark interest rate unchanged in the 3.50%-3.75% range as officials continue to assess inflation risks stemming from elevated oil prices amid ongoing tensions in the Middle East. Most Wall Street Fed watchers anticipate that Warsh won't submit a "dot" to the FOMC's quarterly update of where individual officers expect rates to head from here. Hot inflation data amid the US war with Iran, combined with signs of a steady job market, has taken rate cuts off the table, as reported by Yahoo Finance. Warsh will also hold a news conference at 2:30 p.m., where he may mention accelerating economic growth and the potential for higher rates going forward, even with political pressure to cut rates. However, traders had been building bets that the Fed may have to raise its federal funds rate this year in order to keep a lid on inflation, but are now split on where the Fed could take interest rates through the end of the year. According to data from CME Group, traders are split on whether to bet on a cut, no move, or a hike as the most likely outcome.
The semiconductor sector led market gains with Intel rising 3% as part of a broader comeback among chip stocks. ASML advanced 7%, while the Invesco PHLX Semiconductor ETF (SOXQ) was up by 3%. This rally comes on the heels of Intel starting production of its most-advanced chip node known as 18A-P, a step that moves the company closer to securing a potential agreement to produce chips for Apple devices. Broadcom climbed 6% and Applied Materials rose 7.9%. However, software stocks remained under pressure, as Adobe, Salesforce and Atlassian declined between 1.2% and 2.3%. Jabil gained 4.7% after reporting quarterly earnings and revenue that exceeded analysts' expectations, with CEO Mike Dastoor noting that "AI infrastructure demand remains extremely strong." SpaceX erased an early gain and dropped 5.9%, potentially on track for its first loss since its ballyhooed debut on the US stock market last week. Furniture maker La-Z-Boy jumped 15.1% after posting better-than-anticipated quarterly profit and sales figures, benefiting from revenue made at newly opened stores.
Asian markets showed mixed performance with Nikkei 225 eyeing the 70,000 milestone as it continues its upward trajectory. According to OANDA Business Information & Services, the Japan 225 CFD remains in a minor uptrend phase since the 11 June 2026 intraday low of 62,329, supported by renewed bullish momentum in the hourly RSI. The Nikkei 225 futures are trading near the 68,735/68,089 key short-term pivotal support levels, with potential resistance at 70,180 and 71,790/72,735 (Fibonacci extension cluster). However, failure to hold above 68,089 could negate the bullish tone, opening scope for a retracement to 67,224 and 65,875 (also the 20-day moving average). South Korea's Kospi jumped 1.6% and Hong Kong's Hang Seng fell 0.7%, while London's FTSE 100 slipped 0.1% after a report showed U.K. inflation remained at 2.8% in May.
Oil prices showed significant movement with crude oil plunging to a three-month low amid geopolitical developments. U.S. West Texas Intermediate futures were up 1% at around $77 per barrel, while international Brent crude futures rose 1.8% to $80.40 per barrel. Oil prices ticked higher Wednesday following their sharp slides on optimism about the tentative U.S.-Iran deal to get the global flow of oil going again. Iran is set to immediately take steps to reopen the Strait of Hormuz once the deal is signed, allowing oil tankers to exit the Persian Gulf once again and deliver crude to customers worldwide. Crude oil prices had edged higher on Wednesday after suffering sharp declines in the previous session, as optimism surrounding a tentative U.S.-Iran agreement raised hopes for the restoration of global oil supplies. Oil prices remain above their roughly $70 price from before the war, but are well below their $100-plus price from a few weeks ago. The hope is that will take pressure off inflation, with traders split on where the Fed could take interest rates through the end of the year.
