Market Update
U.S. Indexes Rebounded as Investors Shake Off Rate-Hike Jitters
Barry Adams
18 Jun, 2026
New York City
Stocks on Wall Street advanced following the Fed's rate decisions and optimism over the reopening of the Strait of Hormuz.
The S&P 500 index increased 0.8%, the tech-focused Nasdaq Composite advanced 1.3%, and the yield on 10-year U.S. Treasury notes held at 4.46%.
Benchmark indexes dropped between 1% and 2% in Wednesday's trading after the Federal Reserve held its federal funds rate range steady between 3.5% and 3.75%.
However, policymakers held out for a possible rate hike later in the year amid gathering inflationary forces and energy-linked inflation spilling over to the broader economy.
The rate-setting committee of 18 members clearly favored higher rates later in the year amid worries of higher inflation anchoring in the economy.
Nine members support higher interest rates by the end of this year, and six participants favor two or more quarter-point increases. Eight members preferred to keep rates on hold and supported a cut.
The newly appointed Fed Chair, Kevin Warsh, reiterated the central bank's commitment to bring down inflation to 2%, and overall inflation has stayed well above 2% over the last six years.
Financial markets acted swiftly after the Fed announced its rate decisions and outlook and comments from the Fed chair, and stocks fell and bond yields rose.
U.S. Movers
Accenture plc dropped 11.5% to $140.30 after the information technology service company reported results for the fiscal third quarter ending in May.
Revenue increased 6% to $18.7 billion from $17.7 billion, net income edged up $2.4 billion from $2.2 billion, and diluted earnings per share advanced to $3.80 from $3.49 a year ago.
Fiscal fourth-quarter revenue is to range between $17.75 billion and $18.4 billion, and it tightened its full-year revenue growth estimate to between 3% and 4% from the previous range between 3% and 5%.
The company reiterated its free cash flow estimate between $10.8 billion and $11.5 billion and tightened the diluted earnings per share range between $13.38 and $13.50 from the previous estimate between $13.25 and $13.50.
U.S. Indexes Rebounded as Investors Shake Off Rate-Hike Jitters
Barry Adams
18 Jun, 2026
New York City
Stocks on Wall Street advanced following the Fed's rate decisions and optimism over the reopening of the Strait of Hormuz.
The S&P 500 index increased 0.8%, the tech-focused Nasdaq Composite advanced 1.3%, and the yield on 10-year U.S. Treasury notes held at 4.46%.
Benchmark indexes dropped between 1% and 2% in Wednesday's trading after the Federal Reserve held its federal funds rate range steady between 3.5% and 3.75%.
However, policymakers held out for a possible rate hike later in the year amid gathering inflationary forces and energy-linked inflation spilling over to the broader economy.
The rate-setting committee of 18 members clearly favored higher rates later in the year amid worries of higher inflation anchoring in the economy.
Nine members support higher interest rates by the end of this year, and six participants favor two or more quarter-point increases. Eight members preferred to keep rates on hold and supported a cut.
The newly appointed Fed Chair, Kevin Warsh, reiterated the central bank's commitment to bring down inflation to 2%, and overall inflation has stayed well above 2% over the last six years.
Financial markets acted swiftly after the Fed announced its rate decisions and outlook and comments from the Fed chair, and stocks fell and bond yields rose.
U.S. Movers
Accenture plc dropped 11.5% to $140.30 after the information technology service company reported results for the fiscal third quarter ending in May.
Revenue increased 6% to $18.7 billion from $17.7 billion, net income edged up $2.4 billion from $2.2 billion, and diluted earnings per share advanced to $3.80 from $3.49 a year ago.
Fiscal fourth-quarter revenue is to range between $17.75 billion and $18.4 billion, and it tightened its full-year revenue growth estimate to between 3% and 4% from the previous range between 3% and 5%.
The company reiterated its free cash flow estimate between $10.8 billion and $11.5 billion and tightened the diluted earnings per share range between $13.38 and $13.50 from the previous estimate between $13.25 and $13.50.
Japan's Indexes Soared 2% and Four-Decade Low Yen-Level Triggers Intervention Risk
Akira Ito
18 Jun, 2026
Tokyo
Japan's indexes soared on Thursday amid optimism over the U.S.-Iran peace agreement and the reopening of the Strait of Hormuz.
The Nikkei 225 Stock Average soared nearly 2%, and the broader TOPIX increased 1.4% as investors welcomed the possible ending of hostilities in the Middle East.
The deal framework is likely to pave the way for a possible longer-term agreement, which could normalize traffic through the Strait of Hormuz and ease tensions in the Middle East.
The easing of geopolitical tensions removed significant macroeconomic hurdles for Japan's economy, which depends heavily on imports of energy products.
Brent crude oil prices dropped 2.2% to $77.85 a barrel, and the Japanese yen weakened to 160.35 against the U.S. dollar.
The yield on 10-year Japanese bonds held around 2.64% as investors reviewed the latest U.S. Fed rate decisions.
The Federal Open Market Committee left its federal funds rate range unrevised between 3.5% and 3.75%, but the newly appointed Fed Chair Warsh confirmed that support for a rate hike later in the year is rising.
Earlier in the week, the Bank of Japan raised its short-term rates by 25 basis points to 1.0%, the highest since 1995 amid rising inflationary pressures linked to the U.S.-Iran war.
The central bank moved to shore up the faltering yen, and the embattled currency is trading near four-decade lows.
Japan Indexes and Stocks
The Nikkei 225 Stock Average rose 1.9% to 71,204.14, and the broader TOPIX advanced 1.4% to 4,070.02.
Financial services providers and AI-linked stocks led gainers in Tokyo trading on Thursday.
Sumitomo Mitsui Financial increased 4%, Mitsubishi UFJ Financial advanced 3%, and Mizuho Financial gained 3.2%.
Tokyo Electron, Advantest Corp., Kioxia Holdings, and Lasertec Corp. advanced between 3% and 6%.
Japan's Indexes Soared 2% and Yen Hovered at Four-Decade Low
Akira Ito
18 Jun, 2026
Tokyo
Japan's indexes soared on Thursday amid optimism over the U.S.-Iran peace agreement and the reopening of the Strait of Hormuz.
The Nikkei 225 Stock Average soared nearly 2%, and the broader TOPIX increased 1.4% as investors welcomed the possible ending of hostilities in the Middle East.
The deal framework is likely to pave the way for a possible longer-term agreement, which could normalize traffic through the Strait of Hormuz and ease tensions in the Middle East.
The easing of geopolitical tensions removed significant macroeconomic hurdles for Japan's economy, which depends heavily on imports of energy products.
Brent crude oil prices dropped 2.2% to $77.85 a barrel, and the Japanese yen weakened to 160.35 against the U.S. dollar.
The yield on 10-year Japanese bonds held around 2.64% as investors reviewed the latest U.S. Fed rate decisions.
The Federal Open Market Committee left its federal funds rate range unrevised between 3.5% and 3.75%, but the newly appointed Fed Chair Warsh confirmed that support for a rate hike later in the year is rising.
Earlier in the week, the Bank of Japan raised its short-term rates by 25 basis points to 1.0%, the highest since 1995 amid rising inflationary pressures linked to the U.S.-Iran war.
The central bank moved to shore up the faltering yen, and the embattled currency is trading near four-decade lows.
Japan Indexes and Stocks
The Nikkei 225 Stock Average rose 1.9% to 71,204.14, and the broader TOPIX advanced 1.4% to 4,070.02.
Financial services providers and AI-linked stocks led gainers in Tokyo trading on Thursday.
Sumitomo Mitsui Financial increased 4%, Mitsubishi UFJ Financial advanced 3%, and Mizuho Financial gained 3.2%.
Tokyo Electron, Advantest Corp., Kioxia Holdings, and Lasertec Corp. advanced between 3% and 6%.
China Seeks Wider Use of Yuan In International Transactions
Li Chen
18 Jun, 2026
Hong Kong
China's indexes diverged in Thursday's trading, and investors held out for possible actions from policymakers following mixed economic updates.
The Hang Seng Index decreased 1.7%, and the mainland-focused CSI 300 Index inched higher by 0.1% amid hopes of stronger actions to revive the residential market.
At an annual gathering of policymakers and central bankers, the Luziazui Forum, held in Shanghai and organized by the central bank, China's second in command announced new efforts to take the yuan global.
The People's Republic of China signaled that in the future, policymakers are more likely to use overnight call rates as a benchmark, aligning the central bank's monetary policy framework more closely with peers.
Vice Premier He Lifeng said that Beijing plans to introduce anti-sanctions measures to counter foreign restrictions and accelerate the acceptance of yuan in international trade.
China Indexes and Stocks
The Hang Seng Index decreased 1.70% to 23,900.01, and the mainland-focused CSI 300 Index added 0.1% to 4,937.53.
AI- and semiconductor-related stocks diverged in Hong Kong and mainland trading as investors preferred to increase exposure to likely leaders in the future.
Hygon Technology, Victory Giant, and NAURA Technology gained between 0.1% and 0.3%, but Zhongji Innolight and Eoptolink Technology fell about 0.8%.
BYD decreased 0.5%, Xpeng dropped 3.3%, and Li Auto declined 2.9%.
China Seeks Wider Use of Yuan In International Transactions
Li Chen
18 Jun, 2026
Hong Kong
China's indexes diverged in Thursday's trading, and investors held out for possible actions from policymakers following mixed economic updates.
The Hang Seng Index decreased 1.7%, and the mainland-focused CSI 300 Index inched higher by 0.1% amid hopes of stronger actions to revive the residential market.
At an annual gathering of policymakers and central bankers, the Luziazui Forum, held in Shanghai and organized by the central bank, China's second in command announced new efforts to take the yuan global.
The People's Republic of China signaled that in the future, policymakers are more likely to use overnight call rates as a benchmark, aligning the central bank's monetary policy framework more closely with peers.
Vice Premier He Lifeng said that Beijing plans to introduce anti-sanctions measures to counter foreign restrictions and accelerate the acceptance of yuan in international trade.
China Indexes and Stocks
The Hang Seng Index decreased 1.70% to 23,900.01, and the mainland-focused CSI 300 Index added 0.1% to 4,937.53.
AI- and semiconductor-related stocks diverged in Hong Kong and mainland trading as investors preferred to increase exposure to likely leaders in the future.
Hygon Technology, Victory Giant, and NAURA Technology gained between 0.1% and 0.3%, but Zhongji Innolight and Eoptolink Technology fell about 0.8%.
BYD decreased 0.5%, Xpeng dropped 3.3%, and Li Auto declined 2.9%.
U.S. Stocks Point Higher Ahead of Fed's Rate Decisions
Barry Adams
17 Jun, 2026
New York City
U.S. stocks advanced in early trading on Wednesday, and investors awaited the Fed's rate decisions later in the day.
The S&P 500 Index increased 0.4%, and the tech-focused Nasdaq Composite edged up 0.8%, driven by the sustained buying in the AI-linked stocks.
Benchmark indexes rebounded from the previous session, and investors looked ahead to the release of the Fed's rate announcements and economic projections.
The rate-setting committee is widely anticipated to leave the Fed funds rate range unrevised between 3.50% and 3.75% and revise the higher inflation estimate.
The Federal Open Market Committee is set to complete its two-day meeting later today under the leadership of newly appointed Chairman Kevin Warsh.
West Texas Intermediate crude oil prices edged up 0.3% to $76.31 a barrel, and Brent crude oil prices inched higher by 0.4% to $79.26 a barrel.
Crude oil prices have dropped 20% over the last two weeks and plunged 35% from the peak in the first week in April after the U.S. and Iran signaled suspension of the military operations and agreed to a peace deal framework.
Investors are hoping that the peace deal could survive longer than a week, and commercial shipment through the Strait of Hormuz could resume as early as next month.
The U.S. president has been looking to exit the war with Iran after failing to dislodge the theocratic regime in Tehran and protect the Gulf nations from Iran's missile and drone attacks.
In Asia, benchmark indexes in Japan advanced, and the Nikkei 225 stock average closed at a new record high after exports accelerated in May.
Japan's exports expanded at the fastest pace since November 2022, rising 17% from a year ago, driven by a 61% surge in semiconductors, and automobile shipments increased 16.4%.
Across Europe, benchmark indexes traded in a tight range with a downward bias after BMW issued a profit warning on the back of persistent demand weakness in China and the ongoing impact of the Middle East war.
U.S. Movers
Bayerische Motoren Werke AG dropped 6.7% to €63.38 in Frankfurt trading after the company issued a profit warning.
The company said profit before tax for the fiscal year 2026 is likely to be "significantly lower" than the previous year, compared to the previous estimate of a "moderate decrease."
"The BMW Group expects the automotive free cash flow to be above €2.5 billion, the dividend payout ratio of 30% to 40% of net income attributable to BMW AG shareholders, and the third share buyback program that is currently running to both remain unchanged," the company said in a statement released to investors.
Jabil Inc. increased 3.8% to $388.00 ahead of the electronic subcontracting company's quarterly results.
CarMax Inc. increased 3.6% to $54.00 after the automotive retailer reported its results for the fiscal first quarter ending in May.
Revenue increased 6.2% to $8.0 billion from $7.5 billion, net income decreased to $185.6 million from $210.4 million, and diluted earnings per share eased to $1.31 from $1.38 a year ago.
Retail used unit sales increased slightly, and comparable store used unit sales declined 0.8%; gross profit per retail used unit eased to $2,177 from the last year's record high of $2,407, reflecting the downward pricing trend over the last four quarters.
Total retail used vehicle revenues increased 4.7% compared to a year ago, driven by an increase in the average retail selling price of approximately $1,200 per unit, or 4.5%.
Total wholesale vehicle unit sales increased 8.4% from a year ago to 162,064; total wholesale revenue increased 14%, driven by an increase in units sold and a 5.1% increase in unit price, or $400 per unit.
SpaceX jumped 2.9% to $207.65, and the AI- and defense-technology-focused company's stock has soared more than 50% from its initial public offering price of $135.
U.S. Stocks Point Higher Ahead of Fed's Rate Decisions
Barry Adams
17 Jun, 2026
New York City
U.S. stocks advanced in early trading on Wednesday, and investors awaited the Fed's rate decisions later in the day.
The S&P 500 Index increased 0.4%, and the tech-focused Nasdaq Composite edged up 0.8%, driven by the sustained buying in the AI-linked stocks.
Benchmark indexes rebounded from the previous session, and investors looked ahead to the release of the Fed's rate announcements and economic projections.
The rate-setting committee is widely anticipated to leave the Fed funds rate range unrevised between 3.50% and 3.75% and revise the higher inflation estimate.
The Federal Open Market Committee is set to complete its two-day meeting later today under the leadership of newly appointed Chairman Kevin Warsh.
West Texas Intermediate crude oil prices edged up 0.3% to $76.31 a barrel, and Brent crude oil prices inched higher by 0.4% to $79.26 a barrel.
Crude oil prices have dropped 20% over the last two weeks and plunged 35% from the peak in the first week in April after the U.S. and Iran signaled suspension of the military operations and agreed to a peace deal framework.
Investors are hoping that the peace deal could survive longer than a week, and commercial shipment through the Strait of Hormuz could resume as early as next month.
The U.S. president has been looking to exit the war with Iran after failing to dislodge the theocratic regime in Tehran and protect the Gulf nations from Iran's missile and drone attacks.
In Asia, benchmark indexes in Japan advanced, and the Nikkei 225 stock average closed at a new record high after exports accelerated in May.
Japan's exports expanded at the fastest pace since November 2022, rising 17% from a year ago, driven by a 61% surge in semiconductors, and automobile shipments increased 16.4%.
Across Europe, benchmark indexes traded in a tight range with a downward bias after BMW issued a profit warning on the back of persistent demand weakness in China and the ongoing impact of the Middle East war.
U.S. Movers
Bayerische Motoren Werke AG dropped 6.7% to €63.38 in Frankfurt trading after the company issued a profit warning.
The company said profit before tax for the fiscal year 2026 is likely to be "significantly lower" than the previous year, compared to the previous estimate of a "moderate decrease."
"The BMW Group expects the automotive free cash flow to be above €2.5 billion, the dividend payout ratio of 30% to 40% of net income attributable to BMW AG shareholders, and the third share buyback program that is currently running to both remain unchanged," the company said in a statement released to investors.
Jabil Inc. increased 3.8% to $388.00 ahead of the electronic subcontracting company's quarterly results.
CarMax Inc. increased 3.6% to $54.00 after the automotive retailer reported its results for the fiscal first quarter ending in May.
Revenue increased 6.2% to $8.0 billion from $7.5 billion, net income decreased to $185.6 million from $210.4 million, and diluted earnings per share eased to $1.31 from $1.38 a year ago.
Retail used unit sales increased slightly, and comparable store used unit sales declined 0.8%; gross profit per retail used unit eased to $2,177 from the last year's record high of $2,407, reflecting the downward pricing trend over the last four quarters.
Total retail used vehicle revenues increased 4.7% compared to a year ago, driven by an increase in the average retail selling price of approximately $1,200 per unit, or 4.5%.
Total wholesale vehicle unit sales increased 8.4% from a year ago to 162,064; total wholesale revenue increased 14%, driven by an increase in units sold and a 5.1% increase in unit price, or $400 per unit.
SpaceX jumped 2.9% to $207.65, and the AI- and defense-technology-focused company's stock has soared more than 50% from its initial public offering price of $135.
Japan's Exports Soared In May and Trade Balance Swung to Deficit
Akira Ito
17 Jun, 2026
Tokyo
Japan's benchmark indexes approached record highs as stronger-than-expected international trade data improved market sentiment.
The Nikkei 225 Stock Average increased 0.8%, the broader TOPIX advanced 0.7%, and the yen edged lower to 160.25 against the U.S. dollar.
Japan's goods exports growth accelerated in May, the fastest pace of increase since November 2022, amid solid demand for automobiles and semiconductors.
Goods exports increased for the ninth consecutive month despite Middle East tensions disrupting supply chains and lifting energy costs, according to a report released by the Ministry of Finance.
Seasonally unadjusted exports increased 17% to 9.5 trillion yen, imports rose 12.5% to 9.9 trillion yen, driving the trade deficit down by 42.8% to 378.6 billion yen.
Japan's trade deficit plunged to $2.4 billion, after crude oil imports from the Middle East plunged 57% by volume.
Japan purchased crude oil at $114.6 per barrel, which represents a 52% increase in price compared to a year ago; meanwhile, imports from the Middle East dropped 37.3% to 445.8 billion yen, and overall oil imports fell 28.5% to 539.2 billion yen.
Japan's oil purchases from the U.S. surged 24% and stepped up purchases from Malaysia and Brunei.
The preliminary international trade data highlighted continued interruption of oil-related products, including naptha, a key ingredient used in the manufacture of plastics and packaging materials.
Shipments to China soared 17.9% to 1.7 billion yen, to the U.S. advanced 12.5% to 1.7 billion yen, to Taiwan jumped 37.7% to 834.3 billion yen, and South Korea gained 22.2% to 599.5 billion yen.
Transportation equipment sales increased 19.9% to 1.9 trillion yen; electrical machinery rose 18.5% to 1.8 trillion yen; machinery, by 17% to 1.6 trillion yen; manufactured goods, by 11.4% to 1.1 trillion yen; and chemicals, by 10.9% to 1.0 trillion yen.
Japan recorded its first trade deficit in four months, and the government diversified its import of oil from alternative sources but at a higher cost due to added transportation charges and insurance fees.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 0.8% to 69,962.73, and the TOPIX added 0.7% to 4,015.24.
Technology stocks rebounded in Wednesday's trading as investors returned following the release of strong exports data.
Lasertec increased 13%, Tokyo Electron advanced 2.4%, Advantest Corp. decreased 1%, and Toyota Motor fell 1.3%.
Honda Motor decreased 1.6%, Nissan Motor fell 0.9%, and Yokohama Rubber eased 1.1%.