NEW YORK, June 17, 2026, 11:04 EDT
- The Dow traded up late in the morning but the S&P 500 and Nasdaq were down, LSEG numbers showed, Reuters reported.
- The market was watching for the Federal Reserve’s rate decision at 2 p.m. EDT, the first meeting under Chair Kevin Warsh.
- Retail sales for May climbed 0.9%, topping estimates as the Fed faces more pressure to keep a close watch on inflation.
Dow edges higher, Nasdaq and S&P 500 slip; market stays in tight range
U.S. stocks closed mixed Wednesday. The Dow Jones Industrial Average added 0.33% to 52,169.53, while the S&P 500 eased 0.07% to 7,506.27 and the Nasdaq Composite dipped 0.15% to 26,337.77, according to LSEG data on Reuters. Market action stayed narrow, with neither a clear selloff nor a full risk-on move.
The wait is almost over. The Federal Reserve will issue its policy statement and new projections at 2 p.m. EDT, and Warsh will speak as chair for the first time in a press conference at 2:30. Reuters said the Fed will likely keep rates at 3.50%-3.75%. Markets want clues on any change in language that could hint at possible future cuts.
Chip stocks held up the market. Broadcom, Micron Technology, and Advanced Micro Devices rose, rebounding from the previous day’s drop, as the Philadelphia Semiconductor Index jumped 3.5% earlier, according to Reuters. But losses in communication services and software cut into the gains. Market leadership stayed uneven.
Hotter retail data kept the Fed on its toes. May retail sales climbed 0.9%, better than April’s revised 0.4% increase and ahead of the 0.5% gain forecast in a Reuters poll. Core retail sales, which exclude autos, gas, building materials and food services, were up 0.7%. “This will raise more yellow flags at the Fed,” BMO Capital’s chief U.S. economist Scott Anderson said. Reuters
Shoppers are buying, but signs of strain are showing up. Sales at restaurants and bars slipped 0.1% in the latest retail numbers. Economists have said that tax refunds boosted spending this spring, but the support might not last. Samuel Tombs at Pantheon Macroeconomics called the effect a “sugar rush,” likely to fade soon. Reuters
Rates barely budged. The 10-year Treasury yield tacked on 1 basis point to 4.435%. The two-year gained 2 basis points, now at 4.06%. A basis point equals a hundredth of a percentage point. JPMorgan’s Jay Barry and Jason Hunter said the focus is on Warsh’s first press conference, with fog lingering over his style and the committee’s latest hawkish turn.
Oil put pressure on the market again. Brent crude sat near $80 a barrel, bouncing off three-month lows after talk of a possible U.S.-Iran agreement raised hopes for open flows at the Strait of Hormuz and a bit less supply stress. Luka Belobrajdic, an economist at Westpac, estimated Iran’s exports could reach “2% of global demand,” but said any relief from sanctions would need durable peace. Reuters
The risk is clear. If the Fed signals more hawkish policy, Treasury yields might climb. Oil could spike if the Iran deal falls apart, which might put renewed pressure on inflation right when the Fed is weighing if the recent price jump will stick. Jeff Buchbinder, chief equity strategist at LPL Financial, said markets need the 10-year yield to stay “below 4.5.” Reuters
The week is cut short. Nasdaq’s 2026 market calendar shows that U.S. equity and options markets will be shut on Friday, June 19, for Juneteenth, with Thursday as the last full trading day ahead of the holiday.
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