US Equity Indexes Rise in Midday Trading Ahead of Fed Policy Projections

12:37 PM EDT, 06/18/2025 (MT Newswires) -- US equity indexes rose, while government bond yields fell with crude oil futures, ahead of monetary policy projections from the Federal Reserve and as Iran said Israel's attack occurred when it was negotiating a nuclear deal with the US.

The Nasdaq Composite rose 0.5% to 19,605.1, the S&P 500 was up 0.3% to 6,001.2, and the Dow Jones Industrial Average traded 0.3% higher at 42,350.5 after midday on Wednesday. All sectors except for energy declined intraday.

The Federal Open Market Committee is scheduled to release a monetary policy statement at 2 p.m. ET following its two-day meeting in which interest rates are widely anticipated to be left unchanged. Investors will likely focus on Chair Jerome Powell's commentary, which will be scrutinized for cues on the strategy to rein in stubborn inflationary pressures, according to a research note from D. A. Davidson.

"The market seems to be expecting almost nothing from this FOMC meeting, only that the Fed will adjust its dot-plot for this year to reflect two rate cuts," John Hardy, global head of macro strategy at Saxo Bank, said in a note.

West Texas Intermediate crude oil futures dropped 1.1% to $74.04 a barrel.

Iran's Supreme Leader, Ayatollah Ali Khamenei, criticized Israel for launching its military campaign while Tehran was holding talks with the US over its nuclear enrichment program, CNN reported. He said in a national address that Iran will not surrender and warned that any US military intervention would result in "irreparable damage."

US intelligence assessments are of the view that Iran was not actively pursuing a nuclear weapon, and it was also up to three years away from being able to produce and deliver one to a target of its choosing, CNN reported, citing four people familiar with the assessment.

President Donald Trump is considering a potential military action against Iran amid the ongoing Iran-Israel conflict, media outlets reported. After Trump on Tuesday said Khamenei was "an easy target" for the US and Israel, he then ramped up his demands on Truth Social: "UNCONDITIONAL SURRENDER!", according to a separate news report from CNN.

Most US Treasury yields fell, with the 10-year down four basis points to 4.35% and the two-year rate sliding three basis points to 3.92%.

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