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.