Market Update Following FOMC Meeting
On Wednesday, June 17, 2026, Kevin Warsh, the Chairman of the Federal Reserve Board, delivered a speech that was aired by a television station, following the Federal Open Market Committee (FOMC) meeting at the New York Stock Exchange (NYSE) in New York, USA.
S&P 500 futures showed minimal movement Tuesday night, despite a rise in oil prices following a U.S. military intervention against an Iranian attack. The index was slightly up while Nasdaq 100 futures hovered around the same level. In contrast, the Dow Jones Industrial Average Futures dipped by 38 points, about 0.1%.
In Asia on Wednesday, South Korea’s Kospi saw mixed results. The small-cap Kosdaq experienced a significant drop of over 5%. Meanwhile, Japan’s Nikkei Stock Average decreased by 1.37%, and the TOPIX index fell by 0.31%. However, Hong Kong’s Hang Seng Index went against the trend and rose by 1.4%. In Mainland China, the CSI300 dropped by 0.73%.
West Texas Intermediate crude oil futures increased nearly 4% to around $82 a barrel after the U.S. Central Command announced the interception of ballistic missiles reportedly launched by the Islamic Revolutionary Guards Corps targeting U.S. forces in the Middle East.
In after-hours trading, Ford shares climbed 4%, driven by better-than-expected profit figures and an improved outlook for 2026. Conversely, Visa’s shares fell approximately 1% following its disappointing guidance.
Looking ahead, investors are keenly awaiting the Federal Reserve’s decision on interest rates, scheduled for Wednesday afternoon, alongside a press conference by Chairman Warsh. Current market indicators suggest there’s about a 70% probability that interest rates will remain unchanged within the 3.5% to 3.75% range, according to CME’s FedWatch tool.
Tuesday saw the Dow climb over 500 points, marking its third consecutive day of gains, buoyed by a recent decline in oil prices. However, the Nasdaq Composite ended its fifth straight session in the red, hindered by ongoing struggles in semiconductor stocks, particularly the VanEck Semiconductor ETF, which saw a 3.5% dip on Tuesday, contributing to a weekly loss of more than 9%.
“Markets seem to be overemphasizing inflation risks while underestimating the economic impact of additional tightening measures,” noted Julia Herman, a global market strategist at New York Life Investment Management. She added that a more assertive communication strategy from the Fed might challenge leadership within today’s narrowly-focused markets.
As the Fed’s decision approaches, investors will also be scrutinizing upcoming earnings reports from Procter & Gamble and Humana, anticipated before the market opens. Additionally, results from major tech firms like Microsoft and Meta Platforms, along with chipmakers such as Qualcomm, are due in the afternoon.
