Stocks Subdued Amid Fed Pause and Middle East Tensions

Market Snapshot: S&P 500 Flat as Futures Drift

U.S. equities closed largely unchanged on Wednesday after the Federal Reserve held rates at 4.25–4.50%, with:

• S&P 500: 0.0%

• Nasdaq Composite: +0.1%

• Dow Jones Industrial Average: −0.1%

Investors are bracing for Thursday’s Juneteenth holiday and parsing Fed Chair Jerome Powell’s warning that tariff‑driven inflation pressures are still to come.

Today’s Most Active Movers

See which stocks are driving volume and price action in premarket trading via the Market – Most Active API. market-most-active

Middle East Escalation Weighs on Risk Appetite

A fresh round of airstrikes between Israel and Iran has racheted up uncertainty:

• Arak Nuclear Facility Struck: Israel targeted Iran’s key site overnight.

• Hospital Hit: Iranian missiles struck an Israeli hospital, causing civilian casualties.

• U.S. Entry Uncertain: President Trump says he “may or may not” join the conflict, while Iran’s Supreme Leader warns any U.S. intervention would cause “irreparable damage.”

Oil prices inched higher on fears of shipping‑lane disruptions—track live Brent and WTI quotes with the Commodities API. commodities

Fed Holds Rates, Signals Possible Cuts Later This Year

The Fed’s updated “dot plot” still forecasts 50 bps of cuts in 2025 but pushed out more reductions for 2026–27, hinting at a protracted battle against inflation. Key takeaways:

• Tariff Impact Pending: Powell flagged that Trump’s levies could spark a “meaningful” rise in consumer prices.

• 2025 Outlook: Inflation at 3%, growth slowing to 1.4%, unemployment rising to 4.5%.

• Dot Plot Confidence Low: “No one holds these rate paths with a great deal of conviction,” Powell said.

Stay on top of upcoming Fed commentary and data releases—like next week’s CPI and PCE reports—using the Economic Calendar API. economics-calendar

Actionable Insights for Investors

1. Monitor Safe‑Haven Flows: Middle East flare‑ups can quickly shift capital into gold, oil, and the dollar.

2. Watch Fed Speak: Any signal of accelerated cuts or continued hawkishness will sway both rates‑sensitive and growth stocks.

3. Position for Holiday‑Thin Markets: With U.S. markets closed Thursday, global liquidity could amplify moves in Asia and Europe.

By combining geopolitical vigilance with Fed‑watch tools and real‑time market APIs, investors can better navigate the current blend of policy caution and conflict risk.