Stock Markets Await Fed Decision Amid Middle East tensions
Investors are closely watching the Federal Reserve’s upcoming interest rate decision, with the Middle East conflict taking a backseat. Major U.S.stock indices showed gains on Wednesday, June 18. The Dow Jones climbed 132 points, or 0.31%, while the S&P 500 and NASDAQ rose by 0.40% and 0.55%, respectively.
The Fed is set to announce its decision on June 18 at 2 p.m. Eastern Time. Analysts expect rates to remain unchanged. The central bank is wary of inflation, partly due to former President Donald Trump’s “liberation Day” tariffs. Trump believes rates should be two percentage points lower to boost the economy but acknowledges the Fed is unlikely to cut rates.
Meanwhile, tensions in the Middle East persist. trump has adopted a tough stance against iran, hinting at potential U.S. military involvement. He stated, “Nobody knows what I’m going to do,” when asked about striking Iran. The U.S. supports Israel’s actions against Iran, which have significantly damaged Iran’s military.However, Iran is retaliating with missiles and drones.
Qatar and Oman are attempting to mediate a ceasefire, urging Israel to de-escalate. If the U.S. gets directly involved,it could have severe regional and global oil market repercussions.
