US Market Update: Hawkish Fed Signals Weigh on Stocks as Energy Risks Ease

Index Update

US stocks closed lower as the Fed held rates steady but signaled potential rate hikes later this year, pressuring equities and Treasuries. Mega-cap technology stocks led the decline, while chipmakers such as Micron, Marvell and Intel extended gains despite the broader market weakness.

Market Movers

Among the top-performing stocks of the session IceCure Medical Ltd. surged 200.47%, while Eshallgo Inc. rallied 118.94%. On the losing side, Veraxa Biotech AG. fell 38.05%, while Flash Sports & Media Holdings, Inc. declined 32.21%, making them the weakest performers during the trading day.

Commodities Update

Crude and Brent oil prices fell to their lowest levels since early March as the US-Iran interim agreement eased supply disruption concerns and supported expectations of a reopening of the Strait of Hormuz. Renewed vessel movement through the Gulf signaled improving shipping flows, potentially allowing major regional producers to restore halted output. Despite the sharp decline from April highs, tight inventories, including low Cushing crude stocks, suggest near-term supply risks have not fully eased.

Gold and silver rebounded on Thursday as the US-Iran interim agreement eased geopolitical concerns and supported expectations of renewed Hormuz shipping flows and Iranian oil exports, while ongoing nuclear talks kept some uncertainty in place. However, gains followed sharp losses on Wednesday after the Federal Reserve signaled greater support for rate hikes, with persistent inflation remaining a key headwind for precious metals.

Macro Updates

Dollar Holds Firm on Hawkish Fed Signals

The dollar index stayed above 100 after a sharp rise in the previous session, supported by the Fed’s steady-rate decision and stronger signals of possible rate hikes later this year. While the US-Iran interim agreement eased some geopolitical concerns, uncertainty around the full reopening of the Strait of Hormuz kept markets cautious.

Bonds Commentary

The 10-year US Treasury yield held near 4.46% as the Fed kept rates unchanged but signaled a more hawkish outlook, with higher inflation forecasts and some officials expecting rate hikes later this year. Geopolitical risks eased after the US-Iran interim agreement, though uncertainty over the full reopening of the Strait of Hormuz remained.

Futures Update

US equity futures rebounded on Thursday, led by strength in chip stocks and easing energy inflation concerns after the US-Iran agreement. Nasdaq futures outperformed as Intel, Micron and Nvidia gained, while markets reassessed Fed policy risks after rates were held unchanged and some officials signaled potential hikes later this year.

S&P 500 — 

Yesterday's session printed a bearish engulfing-style candle, closing at 7,420 after tagging an intraday high of 7,532 — a 1.21% decline on the day. Price rejected cleanly at the 1.0 Fibonacci extension (7,622), with sellers asserting control into the close. The 20 EMA at 7,441 has flipped to immediate resistance. RSI has rolled from 58 to 50, signaling fading momentum. Watch the 0.786 retracement at 7,343 as the first meaningful support. A close below that level would concern.