| Update:
key takeaways:
- Oil prices rose 1.4% to $80.03 a barrel after international benchmark Brent crude fell more than 5% on June 16.
- Details of the interim US-Iran deal, which is scheduled to be formally signed at a ceremony in Switzerland on June 19, were leaked on June 16.
- The Federal Reserve ended a two-day meeting and is expected to keep benchmark interest rates unchanged.
New York – The US stock market is falling on June 17 as Wall Street waits to hear from the Federal Reserve in the afternoon about where interest rates are going.
But oil prices have fallen to around $80 a barrel after the United States and Iran reached a temporary agreement on the war.
Iran is set to immediately take steps to reopen the Strait of Hormuz once the deal is signed, and this will allow oil tankers to once again exit the Persian Gulf and supply crude to customers around the world. It is hoped that this will reduce pressure on inflation.
As a result, traders are divided on where the Fed might take interest rates by the end of the year. Some are betting on a rate cut, which President Donald Trump is angrily demanding. But the most popular bets are for no change in rates, while some traders still see a hike as the most likely outcome, according to data from CME Group.
Oil prices moved higher on June 17 due to optimism about a tentative US-Iran deal to restart global flows of oil. The price of a barrel of Brent crude rose 0.7% to $79.53. It’s still up from its pre-war price of about $70, but it’s well below the more than $100 price of a few weeks ago.
The S&P 500 rose 0.1%, capping a mixed day where declines in tech stocks weighed on the index. As of 9:35 a.m. Eastern time, the Dow Jones Industrial Average was up 40 points, or 0.1%, and the Nasdaq Composite was 0.3% higher.
According to the draft copy, the agreement between Iran and the US includes terms of a ceasefire between the arch rivals, the reopening of the Strait of Hormuz, some financial relief for Iran and Tehran’s reiteration that it will never produce nuclear weapons. pic.twitter.com/SiuoZDFLmW
– CNN (@CNN) 17 June 2026
Stocks involved in artificial intelligence business resumed their volatile journey, supporting the market. Jabil jumped 12.4% after reporting stronger-than-expected results for the latest quarter, as CEO Mike Dastur said “demand for AI infrastructure remains extremely strong.”
Broadcom rose 2.3%, and Micron Technology climbed 2.3%.
Such AI stocks have fluctuated in recent weeks and lagged behind the rest of the market on concerns that the frenzy around AI has driven their prices too high. Meanwhile, SpaceX rose 2.8% and is on track for its fourth consecutive gain since its big debut on the US stock market.
Outside of tech, La-Z-Boy jumped 26.3% after reporting stronger profit and revenue than analysts expected in the latest quarter. It benefited from revenue from newly opened stores, although Chief Financial Officer Taylor Luebke said the company takes a “measured view” of the broader sales environment.
A report released June 17 said retailers across the country saw their revenues grow in May at a faster pace than economists expected, raising hopes that solid spending by consumers could support the economy. But high inflation has made American shoppers feel more discouraged about their finances.
The main event of the day will be in the afternoon, when the Fed will announce its latest decision on what to do with interest rates. The widespread expectation is that it will leave its key interest rate alone, as it has done throughout the year.
Mark Hill, CEO of PCS Software, examines what “agent AI” means for modern fleet operations. Tune in by going above or RoadSigns.ttnews.com.
Investors are more interested in the projections that Fed officials will give on where they see interest rates in the coming years and what Kevin Warsh will say after his first meeting as Fed chairman.
Traders were betting the Fed might have to raise its federal funds rate this year to rein in inflation, which has been fueled by expensive oil fueled by the war with Iran.
In the bond market, Treasury yields remained relatively stable. The yield on 10-year Treasuries stood at 4.43%, about where it was at the end of June 16.
Concerns about inflation have pushed higher yields in bond markets around the world, threatening to slow economies and cutting prices of all types of investments.
Overseas, indices across Europe and Asia were mixed.
London’s FTSE 100 slipped 0.2% after UK inflation stood at 2.8% in May, according to a report.
In the two biggest world moves, South Korea’s Kospi jumped 1.6% and Hong Kong’s Hang Seng fell 0.7%.
AP Business Writers Chan Ho-him, Matt Ott and Ellen Kurtenbach contributed to this report.
