Trading Day: US stocks end lower, dollar jumps as Federal Reserve kicks off Warsh era

Space Exploration Technologies

Today 22:00

By Stephen Culp

    NEW YORK, June 17 (Reuters) - Wall Street stocks turned sharply lower on Thursday, the dollar extended its gains and Treasury yields crept higher after the U.S. Federal Reserve left its key interest rate unchanged and signaled, amid elevated inflation and solid economic data, that a rate hike could be in the cards before the end of the year.
I will go into more detail on today's market moves below. If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today.
     

        The U.S. Federal Reserve left rates unchanged, as expected
      

        Receipts at U.S. retailers increased by 0.7% in May, breezing past analyst estimates
      

        U.S. pending home sales unexpectedly rise to six-month high in June 

        CME Group named insider Lynne Fitzpatrick as its next CEO, succeeding Terry Duffy and becoming the first woman to lead the exchange 

        British inflation held firm at 2.8% in May, a 13-month low; Bank of England seen leaving interest rates unchanged on Thursday
      

        The National Stock Exchange of India, the world's most active derivatives exchange, filed IPO papers after years of regulatory delays 
     
            
Today's Key Market Moves

        STOCKS: Wall St reverses gains after Fed decision; Europe's STOXX 600 advances

        SECTORS/SHARES: Communications services .SPLRCL leads laggards, chips .SOX rise; SpaceX SPCX.O dips

        FX: Dollar extends gains after Fed projects rate hike this year

        BONDS: U.S. Treasury yields rise 

        COMMODITIES/METALS: Front-month Brent and WTI crude settle up 1.0% and 0.8%, respectively; gold turns negative, post-Fed
     
     

     
  

     Today's Talking Points 
  

     
  

     * The Warsh era begins: Federal Reserve lets interest rates stand 
  
Having removed the "easing bias" language from the accompanying policy statement, new quarterly projections now show that nine Fed officials anticipate a rate hike before year-end.
Economic projections show policymakers have grown more pessimistic about inflation, and now see year-end PCE inflation of 3.6% by the time 2027 rolls around, up from 2.7% in March.
        

     * The 
    G7 summit
     concludes
  
   Leaders of G7 nations expressed unified support for Ukraine, welcomed progress toward a final settlement of the war on Iran, and demanded a ceasefire in Lebanon.
Focus then turned to securing mineral supply chains and reducing reliance on China.
     

     * The U.S.-Iran deal's $300 billion fund, Netanyahu's political future 
  
The framework agreement between Washington and Tehran includes a private $300 billion fund designed to trigger investment, half of which is already committed.
Israel launched fresh airstrikes on Lebanon, but Prime Minister Benjamin Netanyahu's chances of remaining in power after an election this autumn have dimmed in the wake of the deal, which could end the conflicts in Lebanon and Iran before Israel's goals were accomplished.
     
What could move markets tomorrow?
Developments in the Middle East
Energy market moves
Social media posts from Trump
U.S. weekly jobless claims
U.S. Philly Fed Business Index (June)
UK employment (April)
Policy rate decisions from Bank of England, Swiss National Bank, Norges Bank
Euro zone current account (April)
Euro zone construction output (April)
Bank of Japan policy meeting minutes
     
     
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   Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Federal Reserve dot plot https://www.reuters.com/graphics/USA-STOCKS/gdvzeydnqpw/dotplot.png
 (Reporting by Stephen Culp in New York
Editing by Bill Berkrot)