Dow Jones Creeps 103 Points Higher on Receding Iran Risks and Fed Hints
U.S. stocks posted mixed outcomes on Friday, June 20, as investors digested receding Middle East tensions and new hints from the Federal Reserve about likely rate cuts.
The Dow Jones Industrial Average gained 103 points, lifted by financial stocks and Apple’s gains. The S&P 500 closed nearly flat, dipping 0.03%, and the Nasdaq declined 0.28% as technology stocks softened.
Iran Tensions Briefly Soothe, But Uncertainty Remains
Markets responded cautiously to U.S. President Donald Trump’s remarks on the intensifying conflict between Iran and Israel. Trump stated he would decide “within two weeks” whether to involve the U.S. in the conflict.
Although his statement contributed to geopolitical uncertainty, it also suggested the possibility of diplomatic engagement. Trump, nevertheless, adopted a hard stance on Iran, demanding a total dismantlement of its nuclear program as a prerequisite for talks.
Fed Governor Waller Suggests Possible July Rate Cuts
In a similar vein, Federal Reserve Governor Christopher Waller suggested that the central bank would consider cutting rates as soon as July. He downplayed tariff inflation risks, saying that they’re unlikely to get in the way of policy easing.
Waller, a Trump appointee, also said that a rate cut would need to be unanimous in the Federal Open Market Committee. Trump has continued to pressure the Fed to lower rates, scorchingly attacking Chairman Jerome Powell—but saying he would not fire him.
U.S. Moves to Restrict Tech Flow to China
The U.S. government also informed the chipmakers that they will no longer be able to utilize American technologies in Chinese plants. The move is part of broader efforts to sever China’s access to sophisticated semiconductors considered strategically significant.
The combination of monetary policy expectations, trade tensions, and geopolitical developments is expected to continue stoking market volatility next week.
