Update: US Equity Indexes Drop, Treasury Yields Surge After Fed Removes Easing Bias

03:56 PM EDT, 06/17/2026 (MT Newswires) -- (Updates with index/price moves and macroeconomic news from the first paragraph.)

US equity indexes declined while government bond yields jumped ahead of Wednesday's close after the Federal Reserve removed the so-called easing bias from its policy statement.

The Nasdaq Composite fell 1.4% to 26,005.8, with the S&P 500 down 1.3% to 7,409.7 and the Dow Jones Industrial Average lower by 1% to 51,469.4.

The Fed kept its benchmark interest rate unchanged in the 3.50% to 3.75% range in a unanimous decision announced on Wednesday. The latest policy statement excluded language that suggested a lingering bias toward rate cuts.

"Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East," the Fed statement said. "Job gains have kept pace with the workforce, and the unemployment rate has changed little."

Most US Treasury yields jumped, with the 10-year up 6.9 basis points to 4.50% and the two-year higher by 17.1 basis points to 4.22%.

In his closing remarks at the G7 summit in France, French President Emmanuel Macron said that it is vital that Iran, Hezbollah, and Israel do not resume fighting, while noting that Paris supports a preliminary US-Iran deal to end the war, according to CNN.

Iran will be able to export oil as soon as its agreement with the US is signed on Friday, CNN reported, while noting it has seen a draft of the memorandum of understanding. The MoU states Iran will "never produce nuclear weapons" while allowing Tehran to potentially tap into a $300 billion development fund if it meets commitments related to its nuclear program in further talks, the news agency reported.

Front-month global benchmark North Sea Brent shed 0.1% to $78.86 per barrel, and US West Texas Intermediate down 0.1% to $75.96 per barrel.

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