Stocks slightly higher as bond yields decrease, investors await FOMC meeting results.
From Yahoo Finance: 2025-06-18 10:00:00
Stock indexes are slightly higher today, with investors awaiting the results of the 2-day FOMC meeting. Expectations are for interest rates to remain unchanged. Geopolitical tensions between Israel and Iran continue, with President Trump considering joining Israel’s attacks on Iran.
No closure of the vital Strait of Hormuz yet, despite ongoing hostilities between Israel and Iran. Iran has threatened to respond with force if the US gets involved. US weekly jobless claims fell as expected, but bond yields dropped due to weaker-than-expected US housing data.
US MBA mortgage applications fell in the week ended June 13, with the average 30-year fixed rate mortgage decreasing. Weekly initial unemployment claims also decreased as expected. However, May housing starts and building permits were weaker than expected, with both falling to multi-year lows.
Investors are anticipating negative tariff news from President Trump within the next week. The chances of a rate cut at the FOMC meeting are discounted at 0%. Overseas stock markets are mixed, with European government bond yields moving lower.
Interest rates are mixed, with T-notes rising and European government bond yields falling. Inflation expectations are increasing, while economic prospects in the Eurozone face substantial risks. UK May CPI data showed a slight easing, and swaps are discounting the chances of an ECB rate cut.
US stock movers include Nucor, Marvell Technology, JPMorgan Chase, Wells Fargo & Co, Analog Devices, and Oracle. Pharmaceutical companies are down after reports of potential advertising restrictions. Bitdeer Technologies and Zoetis Inc are also in the red, while Allstate reported increased catastrophe losses in May.
Earnings reports for June 18, 2025, include GMS Inc, Korn Ferry, LiveOne Inc, and Smith & Wesson Brands Inc. Rich Asplund does not hold positions in the securities mentioned. The information in this article is for informational purposes only.