The U.S. Federal Reserve (Fed) kept interest rates steady and maintained its existing outlook on interest rates, resulting in the New York Stock Exchange closing in a flat range on the 18th (local time).
On this day, the Dow Jones Industrial Average fell by 44.14 points (0.1%) to close at 42,171.66. The Standard and Poor's (S&P) 500 index closed down 1.85 points (0.03%) at 5,980.87, while the technology-focused Nasdaq Composite index rose by 25.18 points (0.13%) to close at 19,546.27.
The Federal Reserve held its regular meeting of the Federal Open Market Committee (FOMC) and froze the benchmark interest rate at an annual rate of 4.25% to 4.50%. This decision aligned with market expectations, and Jerome Powell, the Fed chair, reaffirmed a cautious stance on interest rate cuts. In a press conference, he noted, "We are in a good position to wait before considering policy adjustments, as we want to observe the future developments of the economy."
Commissioners of the Federal Reserve maintained the possibility of two interest rate cuts this year in the Summary of Economic Projections (SEP) dot plot. The market accepted this as an outlook that was not significantly different from the previous stance, and major indices experienced only limited fluctuations.
Peter Cadillo, chief economist at Spartan Capital Securities, assessed that "Chairman Powell has clearly stated that he will not change policy until he is confident about the impact of tariffs on inflation, and he has repeatedly emphasized this."
Meanwhile, investors appear more focused on the situation in the Middle East than on the Federal Reserve. President Donald Trump indicated that the possibility of U.S. military intervention in Iran's nuclear facilities could happen "or it may not," suggesting that the situation remains fluid. Earlier, Iran's Supreme Leader Ali Khamenei took a firm stance, stating, "Iran will not surrender."
The bond market also showed a flat trend. According to TradeWeb, the yield on 10-year U.S. government bonds remained unchanged at 4.39%. The CME FedWatch reported that the market reflects a 89.7% chance of an interest rate freeze until the July FOMC meeting, which is a 6 percentage point increase from the previous day. In contrast, the probability of freezing until September dropped to 31.7%.
In the commodities market, international gold prices rose slightly. On the New York Mercantile Exchange, the closing price for gold futures (near month contract) rose by 0.03% to $3,408.1 per ounce. International oil prices also showed an upward trend. Brent crude oil traded at $76.70 per barrel, up 0.3%, while West Texas Intermediate (WTI) increased by 0.4% to $75.14 per barrel.