U.S.Stocks Show Mixed Performance Amid Global Tensions and Rate Cut Hints
U.S. stocks experienced a mixed performance as geopolitical risks took a brief pause. On June 20, the Dow Jones Industrial Average climbed by 103 points, driven by Apple and financial stocks.However, the S&P 500 remained flat, while the tech-heavy Nasdaq saw a slight dip.
investors were keeping an eye on various global and domestic events. A temporary easing of tensions between the U.S. and Iran brought some relief to the market.
Traders were also watching the U.S.-Iran situation closely. President Donald Trump announced he would decide in two weeks whether to intervene in the Israel-Iran conflict. This statement brought uncertainty but also a chance for diplomacy. Trump remains firm on Iran’s nuclear program, demanding its complete dismantling.
On the economic front, Federal Reserve Governor Christopher Waller hinted at possible rate cuts as early as July.He believes tariffs won’t considerably boost inflation, which could allow for monetary easing. Yet, the final decision rests with the Federal Open Market Committee. Trump, who appointed Waller, has pressured the Fed to lower rates, even criticizing Fed Chair Jerome Powell. Despite this, the Fed maintains its independence.
Waller’s suggestion of rate cuts could counterbalance geopolitical tensions. He expects tariffs won’t cause major inflation, supporting the idea of easing monetary policy. The Fed retains its independence, and Trump ruled out firing Powell.
In trade news, the U.S. has restricted semiconductor manufacturers from using American technology in chinese plants. this move aims to limit China’s access to advanced semiconductors, a key strategic resource.
