US open: Stocks little changed as traders await Fed decision

(Sharecast News) - Major indices were little changed early on Wednesday as market participants monitored developments in the Middle East and awaited the Federal Reserve to make its latest interest rate policy decision. As of 1435 BST, the Dow Jones Industrial Average was up 0.01% at 42,219.15, while the S&P 500 was flat at 5,982.63 and the Nasdaq Composite came out of the gate 0.09% weaker at 19,503.54.

The Dow opened just 3.35 points higher on Wednesday, doing little to reclaim losses recorded in the previous session, as investors remained zeroed in on the escalating conflict between Israel and Iran.

Donald Trump took to his social media to threaten Iranian leader Ayatollah Ali Khamenei, saying that the White House's patience was "wearing thin" as he called for Iran's "UNCONDITIONAL SURRENDER!". According to NBC News, Trump has been weighing his options on Iran, including whether to launch a military strike.

Khamenei later said Iran would not surrender and warned the US that it would "undoubtedly be met with irreparable damage" if it chooses to enter the conflict.

Wednesday's other primary focus will likely be the Federal Reserve's monetary policy decision at 1900 BST, with the central bank widely expected to hold its benchmark overnight interest rate steady at the current range of 4.25%-4.50%.

Elsewhere on the macro front, US mortgage applications decreased by 2.6% in the week ended 13 June, according to the Mortgage Bankers Association, down from the prior week's 12.5% jump. Applications to apply for a mortgage fell by 3%, while applications to refinance a mortgage dropped by 2.1%.

On another note, Americans lined up for unemployment benefits at a decelerated pace in the week ended 14 June, according to the Labor Department, in line with expectations. Initial jobless claims fell by 5,000 from the prior week's upwardly revised print to 245,000 but still marked the fifth highest reading since August 2023. Continuing claims came to 1.94m, close to the more than three-year high of 1.95m in the final week of May, while the four-week moving average, which aims to strip out week-to-week volatility, increased by 4,750 to 245,500.

Finally, US housing starts plunged 9.8% month-on-month in May, according to the Census Bureau, dropping to a seasonally adjusted annualised rate of 1.25m units, down from an upwardly revised 1.392m in April for the lowest reading since May 2020, while building permits fell by 2% to a seasonally adjusted annualised rate of 1.39m in May for the lowest reading since June 2020, well below expectations of 1.43m.





Reporting by Iain Gilbert at Sharecast.com

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