Stock market today: Dow, S&P 500, Nasdaq rise ahead of Fed rate decision
US stocks rose on Wednesday ahead of the Federal Reserve's interest rate decision, with the Nasdaq Composite up 0.4%, the S&P 500 gaining 0.2%, and the Dow Jones Industrial Average climbing 0.3% to a record high. Investors awaited new Fed Chairman Kevin Warsh’s stance on monetary policy amid concerns over inflation, the US-Iran peace deal, and potential oil disruptions in the Strait of Hormuz.
US stock markets showed modest gains on Wednesday as traders positioned themselves ahead of the Federal Reserve’s highly anticipated interest rate decision, the first under new Chairman Kevin Warsh. The Nasdaq Composite increased by 0.4%, the S&P 500 rose by about 0.2%, and the Dow Jones Industrial Average climbed 0.3%, reaching a record high amid uncertainty surrounding the US-Iran peace deal. The Fed is widely expected to hold rates steady, but investors will closely scrutinize Warsh’s remarks for clues on future rate hikes. Recent inflation data, including a surge to 4.2% in May—the highest level since 2023—and a strong job market have ruled out rate cuts for now. The potential disruption of oil flows through the Strait of Hormuz, despite a draft 14-point US-Iran memorandum aimed at formalizing an agreement by Friday, adds to market volatility. President Joe Biden’s administration and Iran have agreed on a tentative deal, but former President Donald Trump criticized the memorandum, calling it non-final and warning of possible military action if he disapproved. His comments at the G7 summit added to investor unease over the deal’s stability. Meanwhile, SpaceX shares rose approximately 2%, continuing a post-IPO rally that has propelled the company’s market value past Amazon’s in just three days. The surge reflects strong investor confidence in Elon Musk’s rocket company amid broader market shifts tied to Fed policy expectations and geopolitical tensions.
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