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.