Interest Rates 5 June 2026 - 1 July 2026

U.S. stocks slumped late Wednesday. The Federal Reserve kept rates unchanged, but markets didn’t find much hope for a rate cut soon. The S&P 500 slid 91.23 points, or 1.2%, to 7,420.12. The Dow Jones Industrial Average dropped 506.51 points, or 1.0%, to 51,493.16. The Nasdaq Composite was down 354.69 points, or 1.3%, closing at 26,021.66. Fed Keeps Rate Steady as Warsh Chairs First Meeting The Fed held its benchmark rate at 3.50% to 3.75%, keeping its main policy tool unchanged in Kevin Warsh’s first meeting as chair. The call was unanimous, 12-0. That held off a recent relief trade and put rates back in focus. The central bank said it still sees inflation as high and repeated its price stability pledge.

Wall Street futures climbed early Monday, with investors shrugging off last week’s inflation concerns and focusing on the Fed’s June meeting, the first led by Chair Kevin Warsh. Dow futures added 0.94%, S&P 500 futures moved up 1.29%, and Nasdaq 100 futures gained 2.2%. Markets got a lift after Washington and Tehran reached a preliminary deal to end the Iran war and reopen the Strait of Hormuz. Crude fell more than 4%, hitting a three-month low. That puts pressure off equities—as lower oil can take some heat out of inflation, ease bond yields, and help lift growth stock valuations. The Fed is still seen holding its federal funds rate at 3.50% to 3.75% at its meeting Wednesday. CME FedWatch puts the odds of no change at 98.5% through the June 16–17 meeting, according to Kiplinger. Reuters said the market cut the probability of a December rate hike to about 50%, down from over 70% last week, after lower oil prices eased some inflation worries. Higher rates raise borrowing costs, which can hit stocks as earnings expectations fall and bonds look more attractive.

Dow slips as jobs data lifts yields The Dow Jones Industrial Average traded lower Friday morning, giving up some of Thursday’s big move. A stronger U.S. jobs reading sent bond yields higher, and investors kept away from stocks seen as sensitive to easy Fed policy. The Dow stood at 51,452.31, down 109.62 points, or 0.21%, at 10:33 a.m. EDT, after ranging between 51,357.52 and 51,660.40. Jobs data is back in focus as the report unwound this session’s key trade: strong economic numbers are stoking fresh rate risk. Nonfarm payrolls, which is the headline U.S. jobs figure, climbed by 172,000 in May, with unemployment still at 4.3%, the Labor Department said.