US Stock market today: Wall Street edges higher as Trump comments jolt Fed outlook, chip stocks rebound sharply after recent slump
US Stock market today: Dow, S&P 500, Nasdaq react as Trump's Iran deadline and Fed rate cut hopes drive market uncertainty-
US stock market today showed mixed signals as Wall Street reacted to two major developments — President Donald Trump's two-week deadline on military action against Iran and renewed expectations for a Federal Reserve interest rate cut by July. As traders returned after the Juneteenth holiday break, markets digested global tensions and economic policy shifts.
The Dow Jones Industrial Average (^DJI) climbed 0.4%, while the S&P 500 (^GSPC) posted a modest 0.2% gain. In contrast, the Nasdaq Composite (^IXIC) dipped slightly below the flatline, reflecting cautious investor sentiment, especially in tech stocks.
Stocks slipped on Friday as investors digested geopolitical tensions, mixed economic signals, and rising trade risks. The S&P 500 fell 0.3% while the Nasdaq Composite shed 0.7%. The Dow Jones Industrial Average hovered near the flatline, adding just 0.2%.
Why are chip stocks under pressure again?
Tech stocks, especially semiconductors, were hit hard after a
Wall Street Journal
report revealed the US is considering revoking key waivers that allow global chipmakers to use American tech in China.
Nvidia (NVDA) slipped over 1%, while Lam Research (LRCX), Applied Materials (AMAT), TSMC (TSM), and Broadcom (AVGO) each dropped between 2% and 4%. The move signals a potential intensification in the US-China tech war, adding a fresh layer of uncertainty for the sector.
Live Events
Circle extends rally on crypto optimism
Amid the market gloom, crypto firm Circle (CRCL) surged another 13% to trade near $227 following a 30% rally earlier in the week. The bullish momentum was fueled by the Senate's passage of the GENIUS Act, laying a regulatory framework for stablecoins.
Seaport Research Partners rated Circle a 'Buy' with a $235 price target, calling it a top-tier disruptor poised to benefit from global stablecoin adoption.
Accenture, Kroger, CarMax in the earnings spotlight
Accenture (ACN)
tumbled 6% as bookings fell 6% YoY to $19.7 billion, despite revenue and earnings beating estimates. The firm is grappling with slower federal contract activity under Trump's spending cuts.
Kroger (KR)
jumped nearly 9% after raising its full-year sales outlook, though it kept profit guidance unchanged amid persistent consumer caution.
CarMax (KMX)
rallied over 6% following strong earnings and revenue growth, driven by a 5.8% jump in used car sales.
What's the impact of 'triple witching' on stocks?
Wall Street is also bracing for potential volatility following today's 'triple witching' — the quarterly expiration of $6.5 trillion in stock options, index options, and futures contracts. While the event itself was relatively calm, it may open the door for sharper market swings next week as traders reset positions.
Key Market Movers (as of 11:15 AM ET):
S&P 500 (GSPC):
-0.3%
Nasdaq Composite (IXIC):
-0.7%
Dow Jones (DJI):
+0.2%
Crude Oil (CL=F):
+0.16% to $75.26
Circle (CRCL):
+13.63% to $226.76
Accenture (ACN):
-6.05%
Kroger (KR):
+8.70%
CarMax (KMX):
+6.12%
Why is Trump's two-week Iran deadline rattling investors?
President Trump has imposed a two-week window to decide whether the US will directly engage in the ongoing Israel-Iran conflict, as announced via the White House press secretary on Thursday. The market response to this geopolitical news was immediate, with investors growing uneasy over the potential for broader Middle East instability and its impact on oil prices, defense stocks, and global trade.
Although this deadline adds a layer of geopolitical pressure, it also offers a brief diplomatic window. European foreign ministers from France, the UK, and Germany are holding critical talks with Iranian officials in Geneva, hoping to convince Iran to return to negotiations. However, Iran's president swiftly rejected any such efforts on Friday, dampening hopes for a quick resolution.
Could July be the turning point for Fed rate cuts?
Amid these global concerns, Federal Reserve Governor Chris Waller on Friday suggested that interest rate cuts as early as July are not off the table. Waller pointed to recent inflation data that appears relatively tame — even after Trump's introduction of new tariffs — as a reason to consider easing policy.
Although the Federal Reserve chose to hold rates steady this week, Chair Jerome Powell emphasized a cautious approach, stating the central bank is 'not rushing' to cut. This led President Trump to criticize the Fed again, highlighting the friction between the White House and monetary policymakers.
Waller's remarks nudged up the market's expectations for a rate cut in July, though according to CME Group data, most traders still believe a cut is more likely in September.
What does the market reaction say about investor sentiment?
The stock market's mixed movement reflects a blend of optimism about potential rate cuts and fear over geopolitical escalation. The Dow's rise suggests investors are leaning into more traditional, stable sectors, while the Nasdaq's weakness shows caution in higher-risk tech names.
Market analysts say investors are balancing two key themes: one, the possibility of lower borrowing costs that could support growth and equity valuations; and two, the real-world risks of a US-Iran confrontation that could disrupt markets globally.
How are Trump's tariffs influencing the Fed's outlook?
Trump's recent move to reintroduce tariffs on several key goods has created new complications for the Fed. While tariffs often stoke inflation, current data hasn't shown a sharp uptick, giving the Fed more flexibility. That said, if trade tensions escalate or if tariffs weigh on consumer spending, the case for a rate cut could strengthen.
Waller highlighted that inflation indicators are 'coming down slightly,' despite the added pressure from tariffs. This nuance could be a key part of the Fed's July policy discussions — particularly if Trump's foreign policy developments intensify economic uncertainty.
What should investors watch for next?
Looking ahead, markets will closely track:
Any statements from the Trump administration regarding the Iran deadline
Progress in the European diplomatic talks with Iran
Key economic data releases including inflation and jobless claims
Comments from other Fed officials, which may further guide rate expectations
With the Middle East situation evolving and economic policy still in flux, volatility could remain elevated in the short term.
As the US stock market today reacts to President Trump's Middle East stance and hints of a July Federal Reserve interest rate cut, investors are navigating a delicate balance of political risk and economic hopes. With fresh diplomatic efforts underway and the Fed keeping all options open, the next two weeks could be pivotal in shaping market direction.
FAQs:
Q1.
What did President Trump announce about the US-Iran conflict?
A1.
He set a two-week deadline to decide on possible US military action.
Q2.
Will the Federal Reserve cut interest rates in July?
A2.
Fed officials hinted it's possible if inflation stays low.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
an hour ago
- Economic Times
Voice of America Layoffs: Trump Administration Cuts 1,400 Jobs. Here's why
The Trump administration has confirmed layoffs at Voice of America, ending 1,400 positions. Employees from the Persian-language service were also affected. Officials say the move reduces waste, but critics warn of weakening US influence abroad. The terminations are part of a broader plan to reduce government roles in global communication. Tired of too many ads? Remove Ads Termination Notices Sent Across VOA Contract Workers Previously Warned in May Tired of too many ads? Remove Ads Impact on USAGM Workforce Criticism From Former Employees and Lawmakers FAQs The Trump administration has moved forward with a plan to reduce the workforce at Voice of America. Hundreds of employees received termination notices on Friday. The decision is part of a larger policy to downsize federal agencies and shift US priorities in global Friday, the Trump administration officially notified hundreds of Voice of America employees about their job terminations. This included staff from the network's Persian-language service. Some had recently returned from administrative leave following tensions between Israel and layoffs were expected after notices sent in early May to contract employees. The administration had announced plans to reduce staffing levels at multiple government agencies. These latest steps confirm those to officials, the decision aims to reduce what they call unnecessary spending. Kari Lake, a senior adviser, said the move supports President Trump's goal of reducing the size of the federal workforce. She said it also prioritizes taxpayer US Agency for Global Media, which oversees VOA, is set to lose about 1,400 employees. This equals an 85 percent cut. The affected employees will remain on payroll until Labor Day. Some are being dismissed without severance, which may go against agency have expressed concern about the impact of these job cuts. They argue that VOA helps counter foreign propaganda. In a statement, employees involved in a lawsuit against the administration urged Congress to continue supporting the agency. They warned that adversaries could fill the gap left by layoffs are part of a federal downsizing plan aimed at reducing spending and refocusing America's global media efforts under the US Agency for Global say the layoffs may reduce America's ability to counter global propaganda from countries like China, Russia, and Iran, weakening its presence in international media.
Time of India
2 hours ago
- Time of India
Voice of America Layoffs: Trump Administration Cuts 1,400 Jobs. Here's why
The Trump administration has confirmed layoffs at Voice of America, ending 1,400 positions. Employees from the Persian-language service were also affected. Officials say the move reduces waste, but critics warn of weakening US influence abroad. The terminations are part of a broader plan to reduce government roles in global communication. Tired of too many ads? Remove Ads Termination Notices Sent Across VOA Contract Workers Previously Warned in May Tired of too many ads? Remove Ads Impact on USAGM Workforce Criticism From Former Employees and Lawmakers FAQs The Trump administration has moved forward with a plan to reduce the workforce at Voice of America. Hundreds of employees received termination notices on Friday. The decision is part of a larger policy to downsize federal agencies and shift US priorities in global Friday, the Trump administration officially notified hundreds of Voice of America employees about their job terminations. This included staff from the network's Persian-language service. Some had recently returned from administrative leave following tensions between Israel and layoffs were expected after notices sent in early May to contract employees. The administration had announced plans to reduce staffing levels at multiple government agencies. These latest steps confirm those to officials, the decision aims to reduce what they call unnecessary spending. Kari Lake, a senior adviser, said the move supports President Trump's goal of reducing the size of the federal workforce. She said it also prioritizes taxpayer US Agency for Global Media, which oversees VOA, is set to lose about 1,400 employees. This equals an 85 percent cut. The affected employees will remain on payroll until Labor Day. Some are being dismissed without severance, which may go against agency have expressed concern about the impact of these job cuts. They argue that VOA helps counter foreign propaganda. In a statement, employees involved in a lawsuit against the administration urged Congress to continue supporting the agency. They warned that adversaries could fill the gap left by layoffs are part of a federal downsizing plan aimed at reducing spending and refocusing America's global media efforts under the US Agency for Global say the layoffs may reduce America's ability to counter global propaganda from countries like China, Russia, and Iran, weakening its presence in international media.
Time of India
3 hours ago
- Time of India
1% stamp duty hike likely to overcome Q1 property revenue shortfall
Bengaluru: Revenue shortfall from property registration in the first quarter of this fiscal has prompted the Karnataka govt to actively consider increasing stamp duty by 1%. The stamp duty was last revised in 2013. At present, the govt levies 5% stamp duty on the guidance value (minimum selling price of property fixed by the govt), 1% registration fee, 0.5% cess, and 0.1% surcharge. In all, property buyers pay 6.6% in cess and duty. They might end up 7.6% if the govt clears the hike proposal. Chief minister Siddaramaiah, who holds the finance portfolio, convened a meeting on June 18 to review the performance of the department of stamps & registration. Taking a serious note of the shortfall, he reportedly directed both finance and stamps & registration departments to take measures to improve revenues. Finance officials suggested upward revision in stamp duty. Sources said the CM will take a final call once there is consensus between revenue and S&R departments. Karnataka has the lowest stamp duty among its neighbours, barring Andhra Pradesh. Tamil Nadu levies 11% that includes stamp duty and registration fee, and Maharashtra imposes 7%. Underwhelming revenues from property registration have been a cause of concern, as it potentially implies a sluggish real estate sector. While Siddaramaiah fixed a target of Rs 26,000 crore for 2024-25, he was forced to downscale it to Rs 24,000 crore. But the department could collect only Rs 22,500 crore by the end of the year. This fiscal, the CM fixed a target of Rs 28,000 crore. Going by this, the department was to have collected Rs 7,000 crore on average in the first quarter that ends on June 30. It collected Rs 5,556 crore, logging a 35% shortfall. "The govt is obviously worried about the revenue shortfall, but a stamp-duty hike is not the solution. It should realise that the shortfall is mainly due to the ill-implementation of the policy mandating e-khata for registration and tech glitches in the Kaveri portal. The govt does well to rectify this instead of hiking stamp duty," said T Bhaskar Nagendrappa, state president of Credai (Real Estate Developers' Associations of India). He said the govt increased its guidance value by 39% in 2023, and any hike in stamp duty would make property purchase costlier and negatively impact the sector. "The irony is the govt decided to keep sub-registrar offices open on weekends. But what's the use if the portal is glitch-ridden and e-khatas are not issued," said one sub-registrar. Ends GFX Sagging S&R Revenues 2024-25 Original target: Rs 26,000 crore Revised target: Rs 24,000 crore Achieved: Rs 22,500 crore 2025-26 Annual target: Rs 28,000 crore Target till June 30: Rs 7,000 crore Achieved till June 19: Rs 5,556 crore Source: GoK
