US Stocks Retreat on Hawkish Fed Outlook
2026-06-17 20:11
By
Isabela Couto
1 min. read
US stock closed lower after the Federal Reserve held interest rates unchanged and signaled the possibility of rate hikes this year.
The S&P 500 fell 1.2% and the Nasdaq 100 dropped 1%, while the Dow lost 507 points from its record high.
The Summary of Economic Projections from the Fed's June meeting showed that half of the FOMC members projected one rate hike or more this year, as underlying inflation gauges pointed to rising prices and employment data remained robust despite economic shocks stemming from the war in Iran.
Chairman Warsh refrained from posting a dot in the projections, reflecting his intention to change the Fed's monetary framework.
Meanwhile, Iran and the US remained on track to sign their agreement.
Magnificent Seven stocks led the losses amid the selloff in Treasuries, with Meta down 4.2%, Microsoft losing 3.6%, Alphabet shedding 2.4%, and Amazon dropping 3.1%.
Chipmakers extended their rally, with Micron up 2.2%, Marvell gaining 3.9%, and Intel advancing 3.5%.