Stocks maintain gain as Fed keeps rates the same, raises inflation forecast: Live updates
Traders work on the floor of the New York Stock Exchange (NYSE) on June 18, 2025 in New York City.
Spencer Platt | Getty Images
U.S. stocks rose on Wednesday as traders digested the latest Federal Reserve policy rate decision and monitored the latest developments in the Middle East.
The Dow Jones Industrial Average climbed 141 points, or 0.3%. The S&P 500 also gained 0.4%, while the Nasdaq Composite advanced 0.5%.
The Fed left its key interest rate unchanged Wednesday, with its benchmark overnight borrowing rate staying in a range between 4.25%-4.5%. It has remained in that range since December.
The central bank, however, lowered their growth forecast and raised their inflation outlook for 2025. It still sees two more cuts this year.
Israel-Iran conflict
President Donald Trump told reporters outside the White House Wednesday that the Iranians had reached out and signaled that they would send a delegation to Washington for negations. The comments sent oil prices lower and boosted equities.
“They want to negotiate,” the president said. “They even suggested that they come to the White House. That’s courageous. It’s like not easy for them to do.”
Stocks were downbeat earlier this week as the conflict between Israel and Iran mounted.
The attacks between the two countries entered their sixth day Wednesday as Iran’s supreme leader, Ayatollah Ali Khamenei, said that Iran won’t surrender and warned that the U.S. will “undoubtedly be met with irreparable damage” if it enters the conflict.
This follows Trump taking to his Truth Social platform Tuesday to threaten the Iranian leader, saying that “our patience is wearing thin” and calling for “UNCONDITIONAL SURRENDER!” Current and former administration officials also told NBC News that Trump is weighing options on Iran, including whether to launch a military strike.
“The market just seems very keen to fade geopolitical risk,” Zachary Hill, head of portfolio management at Horizon Investments, said to CNBC. “That has been historically the right thing to do, so I think that’s kind of what’s driving us so far today.”
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