Market Overview S P 500 Holds Steady as Futures Relax

U S equities presented a relatively unchanged performance on Wednesday after the Federal Reserve opted to hold interest rates steady in the range of 4 25 4 50 , with the S P 500 posting no change at 0 0

• S P 500: 0 0

• Nasdaq Composite: +0 1

• Dow Jones Industrial Average: -0 1

As investors brace for the upcoming Juneteenth holiday, they digest Fed Chair Jerome Powell’s remark about persistent inflation pressures tied to tariffs.

Impact of Middle East Developments

A recent surge in airstrikes between Israel and Iran has contributed to ongoing market uncertainty:

• Key Targets Struck: Israel’s bombing of Iran’s nuclear facility.

• Casualties Reported: Iranian missile strikes on an Israeli hospital.

• U S Stance Uncertain: President Trump indicates a cautious approach regarding U S involvement in the conflict, adding to the uncertainty.

Concerns over potential shipping disruptions are lifting oil prices; track live Brent and WTI prices.

Fed Holds Rates but Indicates Future Cuts Could Be Imminent

The Fed’s latest dot plot indicates forecasts for cuts in 2025, extending the duration before projected reductions for 2026 2027, suggesting that the battle against inflation is far from over.

• Tariff Impact: Powell warns that tariffs may significantly raise consumer prices.

• Economic Outlook: Projections show inflation at 3 , growth at 1 4 , and unemployment at 4 5 for the year ahead.

• Confidence Low: Powell pointed out a lack of conviction among policymakers regarding rate paths.

Stay aware of upcoming Fed commentary and market updates as further shifts can occur.

Investment Insights

1. Safe-Haven Investments: Heightened tensions in the Middle East can lead to asset reallocations into gold and oil.
2. Fed Announcements: Any signs of accelerated cuts or consistent hawkishness could sway stocks significantly.
3. Positioning for Holidays: With the U S market closed for the holiday, anticipate changes in global liquidity impacting international equities.

By staying alert to geopolitical factors alongside monetary policy updates, investors can better navigate these uncertain times.