US stocks trade in range after Fed keeps interest rate unchanged
Wall Street's main indexes traded in range after a brief volatility on Wednesday after the Federal Reserve kept the interest rates unchanged at the 4.25%–4.5% range for the sixth consecutive meeting, even as escalating hostilities in the Middle East raised concerns among investors.
ADVERTISEMENT A nearly 2% fall in oil prices also boosted equities midday after U.S. President Donald Trump said Iran wanted to negotiate.
At 2:25 pm, the Dow Jones was up 105.65 points or 0.25% to close at 42,321.45, the S&P 500 gained 14.49 points or 0.24% to end at 5,997.21, and the Nasdaq advanced 61.06 points or 0.31% to settle at 19,582.15. All three indices saw a sharp rise soon after the Fed's decision was released, only to fall back in the current range.
Investors will consider Fed Chair Jerome Powell's comments to gauge how he plans to combat the risk of rising prices, which remains a dominant concern for the central bank. The Fed is expected to leave rates unchanged at its meeting. "Trade tensions have come down somewhat compared to the last time the FOMC met," but it remains to be seen whether the Fed will adjust its commentary or expectations in relation to the inflationary impact of tariffs, said Matt Stucky, chief portfolio manager for equities at Northwestern Mutual Wealth Management.
Ahead of the monetary policy decision, money market moves show traders are pricing in about 47 basis points of rate cuts by the end of 2025, with a 56% chance of a 25-bps rate cut in September, according to CME Group's FedWatch tool.
ADVERTISEMENT Following strong monthly equity trading in May, the benchmark S&P 500 index and the Nasdaq were close to record peaks before the ongoing conflict in the Middle East made investors risk averse. The S&P 500 index stood 2.3% below its record level, and the tech-heavy Nasdaq remained 2.7% lower.
ADVERTISEMENT Investors have been anxious over the possibility of a more direct U.S. military involvement in the Israel-Iran aerial war. A source familiar with internal discussions said U.S. President Donald Trump and his team were considering a number of options, which included joining Israel in strikes against Iranian nuclear sites.
ADVERTISEMENT Ten of the 11 major S&P 500 sub-sectors rose. Energy stocks declined 0.6%, while consumer discretionary led gains with a nearly 1% rise. Among megacap stocks, shares of Tesla gained 2.7%.
ADVERTISEMENT Shares of networking and custom AI chipmaker Marvell Technology hit a three-month high and were last up 7%. Shares of stablecoin issuer Circle Internet rose over 16% after the U.S. Senate passed a bill to create a regulatory framework for dollar-pegged cryptocurrency tokens known as stablecoins. Steelmaker Nucor rose 3.6% following a second-quarter profit forecast that came above analysts' estimates. Initial jobless claims data on Wednesday showed the number of Americans filing new applications for unemployment benefits fell last week, but stayed at levels consistent with a further loss of labor market momentum in June. Advancing issues outnumbered decliners by a 2.89-to-1 ratio on the NYSE and by a 2.44-to-1 ratio on the Nasdaq.
The S&P 500 posted 12 new 52-week highs and six new lows, while the Nasdaq Composite recorded 55 new highs and 71 new lows.
(You can now subscribe to our ETMarkets WhatsApp channel)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
28 minutes ago
- Mint
Yes, more and more celebrities are entering the phone business. Heres why
NEW YORK (AP) — More and more celebrities are looking to attach their names to your phone. Or rather, wireless services that could power it. From cosmetics to snacks and signature spirits, brands launched or co-owned by high-profile figures are just about everywhere you look today. But several big names are also venturing into the market for mobile virtual network operators — or MVNOs, an industry term for businesses that provide cell coverage by leasing infrastructure from bigger, more established carriers. U.S. President Donald Trump's family was the most recent to join the list with the launch of Trump Mobile this week. Here's what to know. On Monday, The Trump Organization (currently run by the president's sons Eric and Donald Jr.) unveiled Trump Mobile. The company says this new business will offer cell service, through an apparent licensing deal with 'all three major cellular carriers" in the U.S., and sell gold phones by August. Trump Mobile marks the latest in a string of new Trump-branded offerings — which already span from golden sneakers to 'God Bless the USA' bibles — despite mounting ethical concerns that the president is profiting off his position and could distort public policy for personal gain. "This raises a real question about a conflict of interest,' said Ben Bentzin, an associate professor of instruction at The University of Texas at Austin's McCombs School of Business. As the sitting president, Trump appoints leadership for the Federal Communications Commission — and the family's new phone venture exists under this regulatory authority. All of this sets Trump Mobile apart from other big names that have recently ventured into the wireless business. Still, its launch arrives as a growing number of celebrities tap into this space. Just last week, actors Jason Bateman, Sean Hayes and Will Arnett launched SmartLess Mobile, a name that mirrors the trio's 'SmartLess' podcast. Now live across the contiguous U.S. and Puerto Rico, SmartLess Mobile runs on T-Mobile's 5G Network. Another wireless provider with ties to fame is Mint Mobile. While not launched by celebrities, Ryan Reynolds purchased an ownership stake in Mint in 2019. Mint's parent, the Ka'ena Corporation, was later acquired by T-Mobile in a deal worth up to $1.35 billion. Beyond names of famous people, well-known brands that weren't traditionally in the phone business have also got in on the action over the years — particuarly outside of the U.S., Forrester Research senior analyst Octavio Garcia Granados notes. He points to Walmart's 'Bait' mobile plan in Mexico, for example, as well as Italian soccer club AC Milan launching its own mobile SIM cards for fans. 'The MVNO market is not new," said Garcia Granados. 'What's new is the development on how it's consumed and the (ease) for brands to launch such plans.' MVNOs have also emerged outside of high-profile brands or launch teams. Bentzin points to Straight Talk and Cricket — which are now owned by Verizon and AT&T, respectively. Still, traditional celebrity endorsements are common across the board. And in recent years, 'influencer marketing" has been 'the fastest growing area of advertising and promotion," he notes. For Trump Mobile, the pitch seems to be all about having an 'all-American service" while also tapping into the fan base of the president. The company noted Monday that it chose to unveil Trump Mobile on the 10th anniversary of Trump launching "his historic presidential campaign.' The name given to its flagship offer, The 47 Plan, and the $47.45 monthly fee make reference to the president's two terms. And a mock-up of the planned gold phone on the company's website shows Trump's 'Make America Great' slogan on the front screen. According to the company, Trump Mobile's 47 Plan will include unlimited calls, texts and data through partner carriers, as well as free roadside assistance and telehealth services. It also says the new phone, called the 'T1 Phone,' will be available for $499 in August — but notes that this device won't be designed or made by Trump Mobile. Still, the company emphasized that these phones will be built in the U.S. Experts have since shared skepticism about that being possible in two months. And beyond the future T1 Phone, others stress that a monthly cell service fee of just under $50 is pricey compared to other MVNO options today. 'It's not actual lower pricing. It's really trading on the fan base, if you will, of Trump,' said Bentzin. SmartLess Mobile and Mint Mobile, of course, don't carry these same political ties. And the wireless plans offered by both boast less expensive offerings. T-Mobile-owned Mint advertises 'flexible, buy-in-bulk' plans that range from $15 to $30 a month. Each option includes unlimited talk and text nationwide, but vary depending on plan length and data amount. Mint, founded in 2016, says it started 'because we'd had enough of the wireless industry's games' — and promises to help consumers avoid hidden fees. SmartLess Mobile's plans also start at $15 a month. Depending on the data amount purchased, that base fee can rise to $30 — but all of its plans similarly offer unlimited talk and text using T-Mobile's network. When launching last week, SmartLess underlined that its goal is to help people stop paying for the data they don't use, noting that the majority of data used by consumers today happens over Wi-Fi. 'Seriously, if your phone bill knew how often you're on Wi-Fi, it would be embarrassed," Hayes said in a statement for SmartLess Mobile's June 10 launch. MVNOs have proven to be attractive acquisitions to big wireless carriers over the years. But whether or not the star factor promises significant demand has yet to be seen for the market's most recent entrants. For the more established Mint Mobile, Reynolds' investment is a success story. The 25% stake that the actor reportedly owned in 2023, when the company announced that it would be acquired by T-Mobile, was estimated to give him a personal windfall of over $300 million in cash and stock. And since that deal closed, Reynolds has remained in his creative role for Mint and as the face of many campaigns — helping the brand continue to attract new customers. It's no surprise that the potential of such business returns might attract other celebrities to make similar investments, Bentzin notes. Still, newer ventures are untested. And "as the market becomes more crowded, it could be harder and harder to pick off individual consumers,' he added. Beyond a high-profile name, quality of service and what consumers can afford is also critical. 'The competition battleground here is brand and price,' Bentzin said. Still, if the marketing is right and product meets consumer needs, experts like Garcia Granados note that MVNOs can be a profitable business, for both the brands that start them and the telecommunications giants — like T-Mobile, Verizon and AT&T — offering this 'wholesale' access to their infrastructure. As a result, he said, such high-profile ventures become 'a catalyst for others to follow." AP Business Writer Bernard Condon contributed to this report from New York.
Mint
34 minutes ago
- Mint
Mutual Fund Giant Wellington Looks to Break Into Business of Buying, Selling PE Stakes
(Bloomberg) -- Wellington Management Co., which is best-known for traditional stockpicking funds, is plotting a move into the fast-growing business of buying and selling private equity stakes. The money manager is in talks with potential hires to start a so-called secondaries arm to acquire illiquid positions from other investors, according to people familiar with the matter. The firm is working with an executive recruiter and told candidates about its plans, the people said, asking not to be identified because the information isn't public. A Wellington spokeswoman declined to comment. The firm, which oversees more than $1 trillion of assets, has its roots in managing mutual funds. Like other money managers, it's increasingly drawn to the $13 trillion private markets industry as the pool of publicly traded US firms shrinks. Traditional asset managers are also grappling with outflows and squeezed margins as clients leave mutual funds for cheaper index products. That shift — and the allure of higher fees — is reshaping managers that are best known for picking stocks and bonds. Wellington, which has a large institutional client base, has been investing in private equity for at least a decade and has also backed unicorns such as WeWork and Airbnb. In recent years, it has made a more aggressive push into private markets. The Boston-based firm hired a team of four fund managers from Pacific Investment Management Co. this year to start a private real estate credit platform as it aims to grow in private credit. By entering the secondaries market, Wellington would provide relief to investors that need cash because of a prolonged lull in deal exits. President Donald Trump's tariff war has further hobbled dealmaking, forcing yield-starved pensions to offload their stakes to secondhand buyers at discounts for cash. Meanwhile, elite universities are selling private-fund stakes to shore up cash in the face of threats to their tax-exempt status. New buyers are now stepping into the arena, betting that the secondaries industry could top past records. Exchange-traded fund giant BlackRock Inc., which struck deals to buy three private-markets firms in the space of a year, said in a recent report that it predicts that the secondaries market growth will accelerate. More stories like this are available on
India Today
2 hours ago
- India Today
Putin offers to mediate Israel-Iran conflict, citing Russia's key ties
Russian President Vladimir Putin on Wednesday has offered to mediate peace between Israel and Iran, positioning Moscow as a potential power broker in one of the most volatile standoffs in the Middle at a roundtable with senior international news editors during the St. Petersburg International Economic Forum, Putin suggested that Russia's close ties with both Tehran and Jerusalem could help broker a a delicate issue,' Putin acknowledged, 'but in my view, a solution could be found. Putin said Moscow had already shared mediation proposals with Iran, Israel, and the United States, and emphasized Russia's historical involvement in Iran's civilian nuclear program, including the construction of the Bushehr nuclear Putin's pitch drew a pointed response from US President Donald Trump, who revealed on Wednesday that he pushed back on the idea during a phone call with the Russian leader last weekend.'I said, 'Do me a favor, mediate your own,'' Trump recounted. 'I said, 'Vladimir, let's mediate Russia first. You can worry about this later.''The remark marks a shift in tone from Trump, who earlier in the week had said he was 'open' to Putin's proposal to help defuse the growing Israel-Iran has long walked a diplomatic tightrope in the Middle East, cultivating deep economic and military ties with Iran while maintaining strong working relations with Israel. That balance, Putin argued, gives Moscow a unique position to mediate, reports Associated Press.'Russia has a trusting relationship with Iran,' Putin said, highlighting its nuclear cooperation, 'but we also maintain good relations with Israel.'However, any diplomatic overture from the Kremlin is shadowed by Russia's ongoing war in Ukraine — a point not lost on either Trump or intenational observers. Putin effectively rejected Trump's own call for a 30-day ceasefire in Ukraine, insisting such a pause would only be considered if Western arms shipments ceased and Ukraine halted its troop comments came during the St. Petersburg International Economic Forum, a platform he regularly uses to project strength and attract non-Western investment. This year, Western executives were notably absent, replaced by dignitaries from Asia, Africa, Latin America, and top officials from OPEC and BRICS Russian leader also met with former Brazilian President Dilma Rousseff, now heading the New Development Bank, and is expected to hold additional talks with leaders from Indonesia, China, South Africa, and Bahrain.(With inputs from Associated Press)Must Watch
