Investors await the Federal Reserve’s policy update amid elevated inflation and geopolitical oil risks following the US-Iran deal.
Wall Street futures showed muted gains early Tuesday, with the Dow up 0.1%, the S&P 500 flat, and the Nasdaq 100 rising 0.2%. The pause follows Monday’s record close, as traders shift focus to the Federal Reserve’s two-day meeting starting today.
Inflation hit 4.2% in May, the highest since 2023, fueled by energy price spikes tied to the Iran conflict. While no rate hike is expected Wednesday, markets will scrutinize the Fed’s dot plot for signals on future tightening. Japan’s central bank recently raised rates to a 31-year high, adding pressure.
SpaceX shares surged 10% premarket, poised to overtake Amazon as the world’s fifth-largest company. Meanwhile, uncertainty lingers over the US-Iran accord, with the Strait of Hormuz reopening delayed and oil flows unlikely to normalize quickly.