US close: Stocks flat on Fed caution, geopolitical uncertainty
By Benjamin Chiou
Date: Thursday 19 Jun 2025
(Sharecast News) - Wall Street stocks finished flat on Wednesday after the Federal Reserve sounded a more hawkish tone than expected, while ongoing geopolitical uncertainty in the Middle East kept risk appetite in check.
The Dow fell 0.10% to 42,171.66, its lowest in three weeks, while the S&P 500 slipped 0.03% to 5,980.87 and the Nasdaq gained 0.13% to 19,546.27.
Trading was rangebound as investors awaited the latest policy decision by the Federal Open Market Committee, which at 1400 ET kept its target range for the Fed funds rate at 4.25-4.50%.
The central bank also trimmed their forecasts for economic growth in 2025 and 2026 while raising those for inflation, but maintained its prediction for two interest rate cuts over the course of 2025, followed by a single reduction in each of the subsequent years.
However, in his post-meeting press conference meanwhile, Fed chair Jerome Powell said: "We expect a meaningful amount of inflation to arrive in the coming months [...] We have to take that into account."
Investors were also keeping a close eye on the latest newsflow from the Middle East, where Israel and Iran traded airstrikes for the sixth straight day.
Donald Trump took to his social media to threaten Iranian leader Ayatollah Ali Khamenei, saying that the White House's patience was "wearing thin" as he called for Iran's "UNCONDITIONAL SURRENDER!". According to NBC News, Trump has been weighing his options on Iran, including whether to launch a military strike.
Khamenei later said Iran would not surrender and warned the US that it would "undoubtedly be met with irreparable damage" if it chooses to enter the conflict.
"Fears of an immediate US strike on Iran have receded, but the redeployment of military assets continues, indicative of preparations for US forces to join Israel's campaign," said Chris Beauchamp, chief market analyst at IG. "So long as the conflict remains contained then we can expect market reaction to remain similarly muted; how much US participation is now priced in given Trump's rather transparent comments on the subject remains to be seen."
Economic data takes a backseat
A trio of leading economic indicators were largely shrugged off by markets with investors' focus elsewhere.
US mortgage applications decreased by 2.6% in the week ended 13 June, according to the Mortgage Bankers Association, down from the prior week's 12.5% jump. Applications to apply for a mortgage fell by 3%, while applications to refinance a mortgage dropped by 2.1%.
According to the Labor Department, initial jobless claims fell by 5,000 in the week ended 14 June but still marked the fifth highest reading since August 2023. Continuing claims came to 1.94m, close to the more than three-year high of 1.95m in the final week of May, while the four-week moving average, which aims to strip out week-to-week volatility, increased by 4,750 to 245,500.
Finally, US housing starts plunged 9.8% month-on-month in May, according to the Census Bureau, dropping to a seasonally adjusted annualised rate of 1.25m units, down from an upwardly revised 1.392m in April for the lowest reading since May 2020, while building permits fell by 2% to a seasonally adjusted annualised rate of 1.39m in May for the lowest reading since June 2020, well below expectations of 1.43m.
Market movers
Steel producer Nucor gained after second-quarter earnings guidance impressed the market, while sector peer Steel Dynamics fell as its guidance disappointed.
The companies' updates came on the same day that the US Steel-Nippon Steel merger came into effect, with shares of US Steel ceasing trading on the NYSE.
Consultancy Korn Ferry was a big mover, jumping 6% after beating both revenue and profit estimates for its fourth quarter.
Meanwhile, Oracle was rising after Guggenheim analysts hikes their target price for the stock, while Zoetis was hit by a downgrade to 'hold' by Stifel.
Dow Jones - Risers
Intel Corp. (INTC) $21.49 3.32%
Goldman Sachs Group Inc. (GS) $635.24 1.70%
JP Morgan Chase & Co. (JPM) $273.96 1.65%
Merck & Co. Inc. (MRK) $79.29 1.29%
American Express Co. (AXP) $296.42 1.23%
Walmart Inc. (WMT) $95.09 0.89%
Cisco Systems Inc. (CSCO) $65.84 0.78%
Caterpillar Inc. (CAT) $359.80 0.59%
Apple Inc. (AAPL) $196.58 0.48%
Microsoft Corp. (MSFT) $480.24 0.46%
Dow Jones - Fallers
Visa Inc. (V) $340.38 -4.88%
Dow Chemical Co. (DOW) $28.50 -3.19%
Boeing Co. (BA) $197.68 -1.29%
Salesforce.Com Inc. (CRM) $259.50 -1.24%
Johnson & Johnson (JNJ) $150.73 -1.08%
McDonald's Corp. (MCD) $289.63 -0.92%
Nike Inc. (NKE) $59.51 -0.82%
Coca-Cola Co. (KO) $69.21 -0.59%
Unitedhealth Group Inc. (UNH) $307.20 -0.54%
Home Depot Inc. (HD) $347.03 -0.50%
S&P 500 - Risers
Intel Corp. (INTC) $21.49 3.32%
Nucor Corp. (NUE) $126.18 3.26%
Wells Fargo & Co. (WFC) $74.74 3.09%
State Street Corp. (STT) $99.30 2.98%
Align Technology Inc. (ALGN) $180.01 2.77%
Edison International (EIX) $50.46 2.56%
Zions Bancorporation (ZION) $48.33 2.22%
Citizens Financial Group, Inc. (CFG) $41.32 2.15%
Royal Caribbean Cr (RCL) $267.78 2.06%
Tractor Supply Company (TSCO) $52.03 2.06%
S&P 500 - Fallers
Mastercard Incorporated (MA) $538.73 -5.39%
Dxc Technology Company (DXC) $14.76 -5.14%
Visa Inc. (V) $340.38 -4.88%
Zoetis Inc (ZTS) $155.06 -4.09%
Helmerich & Payne Inc. (HP) $17.38 -3.92%
Hanesbrands Inc. (HBI) $4.43 -3.49%
Halliburton Co. (HAL) $22.28 -3.17%
Coty Inc. Class A (COTY) $4.79 -3.04%
Paypal Holdings Inc (PYPL) $68.57 -2.97%
Under Armour, Inc. (UA) $5.86 -2.82%
Nasdaq 100 - Risers
Qvc Group Inc Series A (QVCGA) $3.20 4.58%
Intel Corp. (INTC) $21.49 3.32%
Align Technology Inc. (ALGN) $180.01 2.77%
Tesla Inc (TSLA) $322.05 1.80%
Vertex Pharmaceuticals Inc. (VRTX) $448.40 1.45%
Henry Schein Inc. (HSIC) $71.13 1.38%
Micron Technology Inc. (MU) $121.82 1.23%
Western Digital Corp. (WDC) $59.19 1.06%
Charter Communications Inc. (CHTR) $377.43 1.02%
Analog Devices Inc. (ADI) $229.65 0.97%
Nasdaq 100 - Fallers
Trip.com Group Limited (TCOM) $56.54 -6.81%
Paypal Holdings Inc (PYPL) $68.57 -2.97%
KLA-Tencor Corp. (KLAC) $871.16 -2.45%
Workday, Inc. (WDAY) $236.88 -2.40%
JD.com, Inc. (JD) $32.50 -2.02%
Alphabet Inc. Class C (GOOG) $173.98 -1.83%
Baidu Inc. (BIDU) $84.54 -1.71%
Alphabet Inc. Class A (GOOGL) $173.32 -1.49%
Paychex Inc. (PAYX) $150.32 -1.44%
Gen Digital Inc. (GEN) $29.36 -1.38%
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