Live Markets: Wall Street falls after Fed holds rates steady; policymakers see 2026 hike

Space Exploration Technologies

Today 19:26

Wall Street indexes drop after Fed decision
Comm Svcs weakest S&P 500 sector; Industrials lead gainers
Dollar rallies ~0.4%; US crude up 0.8%; bitcoin, gold dip
US 10-year Treasury yield edges up to ~4.45%
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WALL STREET FALLS AFTER FED HOLDS RATES STEADY; POLICYMAKERS SEE 2026 HIKE
Wall Street is dropping immediately after the Federal Reserve held its benchmark interest rate steady, with policymakers expecting to hike borrowing costs later this year amid ongoing concerns about inflation.
The S&P 500 .SPX swung from a modest gain to a 0.3% loss. The Nasdaq .IXIC is also down about 0.3%.
Fresh quarterly projections showed nine Fed officials now see a rate hike by the end of 2026, and an updated policy statement nixed language that had been used to flag the likelihood of further reductions in borrowing costs in 2026.
The statement, in an early sign of new Fed Chairman Kevin Warsh's influence, removed any guidance about future rate moves altogether, and the shortened document was approved by a unanimous 12-0 vote.
"Warsh has been put in a tough spot because obviously we've been seeing inflation trending higher and broadening out on services and goods prices," Carson Group Chief Market Strategist Ryan Detrick said.

    Oil prices edged higher on Wednesday after U.S. President Donald Trump said Washington's ceasefire agreement with Iran was not final and that the war could resume if he is unsatisfied. High oil prices related to that conflict have fueled inflation in recent months, creating additional uncertainty for the Fed.
  

    SpaceX SPCX.O was last down about 3%, putting its stock market value at $2.6 trillion.
  

    The PHLX chip index .SOX remains positive, lifted by gains in Broadcom AVGO.O and Marvell Technology MRVL.O.
  
(Noel Randewich and Stephen Culp)
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EARLIER ON LIVE MARKETS:
WELLS FARGO: ITS GROWTH OUTLOOK AND WHERE TO BET CLICK HERE
BOFA CLIENTS PIVOT TO SMALL CAPS AMID SELLING IN LARGER NAMES CLICK HERE
FOOD FOR THE FED: SOLID RETAIL AND PENDING HOME SALES, STUBBORNLY HIGH MORTGAGE RATES CLICK HERE
US STOCKS CHOP AROUND AHEAD OF WARSH'S FIRST FED DECISION CLICK HERE
BENCHMARK TREASURY YIELD STEADIES AHEAD OF FED, BIGGER MOVE STILL BREWING CLICK HERE 
NO QUICK FIX FOR IT SERVICES' AI HEADACHE CLICK HERE
BOE RATE HIKES? WHAT FOR? CLICK HERE
TECH NOW ACCOUNTS FOR 20% OF GLOBAL EQUITY POSITIONING, BNY SAYS CLICK HERE
STEADY ON (CLICK HERE)
EUROPE BEFORE THE BELL: TAKING STOCK (CLICK HERE)
ALL EYES ON HOW WARSH WALKS THE LINE (CLICK HERE)
     

PostFed snapshot https://fingfx.thomsonreuters.com/gfx/mkt/gkvlzgdlmvb/Pasted%20image%201781719898987.png