Wednesday Afternoon Coffee - Markets Update - 18 June 2025 - Markets Choppy as Fed Cools Easing Hopes, Oil Gains Amid Mideast Tensions

The Trade Academy Team
Jun 18
2 min read

Markets Update: U.S. stocks swung in a tight range Wednesday after the Federal Reserve signaled a more cautious path toward rate cuts, while oil prices edged higher for a sixth consecutive session as geopolitical risk in the Middle East remained elevated.

Global Markets Roundup: 18 June 2025

Fed Pauses, Flags Slower Cuts

Equities wavered after the Fed left interest rates unchanged and hinted at a slower pace of rate reductions, citing potential inflationary pressures from President Donald Trump’s tariff policy. Despite acknowledging slower growth, the central bank maintained that the economy remains fundamentally stable.

Major indexes reversed early gains following the Fed’s statement:

Dow Jones Industrial Average: +0.08%
S&P 500: +0.09%
Nasdaq Composite: +0.19%

Uncertainty over Washington’s potential involvement added to market jitters. Iranian Supreme Leader Ayatollah Ali Khamenei dismissed Trump’s demand for surrender, while the president remained cryptic: “Nobody knows what I’m going to do.”

Yields Whipsaw, Dollar Mixed

U.S. Treasury yields seesawed after the Fed’s announcement. The 10-year note yield ticked up 0.6 basis points to 4.397%, while the 2-year yield dipped 0.7 basis points to 3.944%.

Earlier declines in yields reflected investor concerns over global risk rather than domestic fiscal stress. The Dollar Index DXY initially fell but reversed higher, ending up 0.08% at 98.91, as the euro EURUSD slipped 0.04% to $1.1474.

Oil and Gold Higher as Tensions Flare

Crude prices climbed for a sixth day as the standoff between Israel and Iran raised concerns about regional supply disruptions. U.S. crude futures settled up 0.4% at $75.14 per barrel, while Brent gained 0.43% to $76.74. Gold held above the $3,390 mark, climbing modestly as investors sought safety amid policy and geopolitical uncertainty.

Grains Jump on Weather Threat

Grain prices surged, with wheat leading gains on forecasts of damaging storms expected to hit the Midwest next week:

Wheat (July): +4.5% to $5.73¾/bushel
Corn (July): +0.3% to $4.32¾/bushel
Soybeans (July): +0.1% to $10.72¾/bushel

Outlook

With monetary policy in a holding pattern and global risks simmering, markets remain delicately balanced. Investors are watching closely for any escalation in Middle East conflict or unexpected moves from the Trump administration.

Looking forward refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.

General news - Information source from multiple newswires.

The article and the data is for general information use only, not advice!

The Trade Academy Team