
On Tuesday, the Dow Jones reached fresh record intraday and closing highs, briefly trading above the 52,000 level before ending slightly below it. In contrast, the S&P 500 and Nasdaq declined as investors continued rotating away from some technology stocks despite ongoing strength in the broader market.
In today’s early trading, the U.S. stock futures edged higher as investors awaited the Federal Reserve’s interest rate decision and the first FOMC meeting chaired by Kevin Warsh.
Asian markets were mostly positive, with Japan’s Nikkei reaching another record high and gains also seen in South Korea and Australia. The optimism continues to be supported by the recent U.S.-Iran peace agreement, which has improved risk sentiment and helped reduce oil prices by easing concerns about disruptions in the Strait of Hormuz.
Investors widely expect the Federal Reserve to leave interest rates unchanged at 3.50%–3.75%. However, markets will be closely focused on Kevin Warsh’s first press conference, the Fed’s economic outlook, and any signals regarding future rate moves.
Gold prices traded modestly higher on Wednesday, hovering around $4,335 per ounce as the metal continued to recover from last week’s yearly lows. The rebound comes as investors assess the implications of a developing peace agreement between the United States and Iran and await the outcome of the Federal Reserve’s policy meeting.
The U.S. and Iran are reportedly preparing to formally sign an interim peace agreement, with a signing ceremony expected in Switzerland later this week. President Donald Trump stated that the Strait of Hormuz could reopen on Friday and described the agreement as a completed deal that would prevent Iran from developing nuclear weapons.
Oil prices were relatively stable on Wednesday after suffering nearly 5% losses in the previous session, with WTI crude trading around $75.80 per barrel.
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