Equity Markets Mixed Intraday Amid Middle East Developments, Fed Governor Remarks

02:38 PM EDT, 06/20/2025 (MT Newswires) -- US benchmark equity indexes were mixed intraday as traders monitored the latest developments in the Middle East and comments by a Federal Reserve governor.

The Nasdaq Composite was down 0.3% at 19,480.4 after midday Friday, while the S&P 500 fell 0.1% to 5,976.1. The Dow Jones Industrial Average rose 0.1% to 42,216.8. Among sectors, communication services posted the biggest drop, while consumer staples paced the gainers.

US markets were closed Thursday for the Juneteenth holiday.

US President Donald Trump will allow two weeks for diplomacy before deciding whether to launch a strike against Iran amid its ongoing conflict with Israel, news outlets reported.

"Based on the fact that there's a substantial chance of negotiations that may or may not take place with Iran in the future, I will make my decision whether or not to go within the next two weeks," Trump said, according to CNBC, citing a statement read Thursday by White House spokesperson Karoline Leavitt.

US Treasury yields were lower intraday Friday, with the two-year rate falling 3.5 basis points to 3.91% and the 10-year rate losing 2.2 basis points to 4.37%.

The Fed may be in a position to ease monetary policy "as early as July," as tariffs are unlikely to increase inflation significantly, Governor Christopher Waller said, according to CNBC. "That would be my view, whether the committee would go along with it or not."

On Wednesday, the central bank's Federal Open Market Committee kept its policy rate unchanged for a fourth straight meeting, while sticking to its federal funds rate outlook for 2025 amid higher inflation expectations.

"Uncertainty around growth, unemployment, and inflation all remained elevated, even if slightly less than in March on the growth and unemployment fronts," Morgan Stanley said Friday in a note. "Risks also remained skewed to the downside for growth, upside for unemployment, and upside for inflation."

In company news, Accenture (ACN) raised its full-year earnings outlook and reported fiscal third-quarter results above market expectations, though the consulting firm's bookings declined on an annual basis. The company's shares fell 7.1%, the steepest decline on the S&P.

Nvidia (NVDA) shares declined 0.9%, and Taiwan Semiconductor Manufacturing (TSM) fell 1.8%. A US official has told major global chipmakers that he wanted to revoke waivers that allow them to ship US chip-making equipment to their factories in China without individual licenses, The Wall Street Journal reported, citing people familiar with the matter.

Kroger (KR) raised its guidance for identical sales growth for fiscal 2025 after the supermarket chain reported a year-on-year increase in the metric for the first quarter. The company's shares rose 8.8%, the top gainer on the S&P.

CarMax (KMX) shares rose 6.2%, the third-biggest advance on the S&P, after the used-vehicle retailer logged better-than-expected fiscal first-quarter results amid higher sales for used vehicles despite lower prices.

West Texas Intermediate crude oil was up 0.3% at $75.34 a barrel intraday.

In economic news, manufacturing activity in the US Mid-Atlantic region remained in contraction territory in June, while the employment gauge reached the lowest since May 2020, a survey from the Philadelphia Fed showed.

Gold was down 0.7% at $3,384.3 per troy ounce, while silver fell 2.5% to $36 per ounce.

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