Indexes

Wednesday's Federal Reserve decision left interest rates steady, but the projections that came with it pointed toward higher rates ahead, and stocks gave way once the afternoon arrived. The selling was broad, with every major average lower and the Dow handing back the record it set on Tuesday.

The damage tracked duration rather than size: the Russell 2000, full of domestic banks and cyclicals, fell less than the megacap-heavy Nasdaq, a reversal of the usual order on a rate-driven day.

Sector Heat Map

All eleven sectors finished red, and the dividing line was sensitivity to interest rates rather than the usual contest between offense and defense.

Financials, industrials and the least rate-sensitive corners of tech lost the least, while the bond-proxy groups, real estate, staples and utilities, sank alongside the long-duration growth in communications and discretionary that is valued on cash flows years away.

In the News

Drivers

1. Pricing the new rate path. The market spent Wednesday afternoon moving toward a single 2026 hike, and the work now is deciding whether it stops there. Nine officials signaled at least one increase and six sketched two, so every inflation reading from here carries more weight than it did a week ago. Thursday's weekly jobless claims and next week's reading on the Fed's preferred inflation gauge are the near-term checkpoints. Does a consumer still spending 0.9% a month and an inflation forecast back at 3.6% leave any room for the cut the market wanted?

2. Whether megacap growth steadies. Meta, Microsoft and Amazon led the decline as the higher discount rate hit the names with the most distant earnings, even as the chipmakers that fell Tuesday bounced. Whether that split holds, with semiconductors firm and software soft, or the whole group rerates lower, will set the index's direction given how much weight sits in a handful of tickers.

3. Oil into Friday's signing. Crude sat near three-month lows despite a tenth straight inventory draw, with the expected US-Iran memorandum capping every rally. A signed deal that reopens the Strait of Hormuz puts the $75 level back in play.

SPY, daily: the S&P slipped back under its 20-day as the rate outlook shifted.

Broadcom, daily: the chipmaker recaptured the gap it left on its June 5 guidance miss.

Lennar, daily: the homebuilder gave back the rate-relief rally as yields surged.

JPMorgan, daily: the bank pushed to a record-area high as front-end yields jumped.

Rates, FX, Commodities

Most of the action after 1 p.m. Central came in the front end of the curve. Two-year yields jumped while the long bond held near 4.93%, a textbook bear-flattening as traders priced near-term hikes rather than higher long-run inflation.

With the two-year near 4.19% and the ten-year at 4.46%, the gap between them narrowed to roughly 27 basis points, down from about 37 in the morning, the curve flattening as the market pulled rate-hike odds forward to the autumn.

The dollar climbed back above 100 for the first time in a week and the euro slipped under 1.15 as the rate-path repricing favored US assets. Crude barely reacted to a bigger-than-expected inventory draw, with the memorandum due Friday in Switzerland capping every attempt to rally, while gold took the hardest hit in the complex as the stronger dollar and firmer real yields undercut a metal whose entire case rests on the opposite. These oil, gold and gas levels come from a live close-of-session snapshot, not a number carried over from Tuesday.

Technicals

The benchmarks slipped through the levels they had been defending. At 7,420 the index sat back below its 20-day average near 7,475, which leaves the 50-day by 7,260 as the next support and the early-June peak of 7,609.78 as a more distant ceiling. The Nasdaq 100 ended at 29,671, holding its 20-day near 29,650 by a whisker, the line bulls need to keep. In rates, the ten-year at 4.46% pushed above its 50-day near 4.42% toward the 4.55% cap on its recent range, and a close above that would open higher yields; the two-year broke to the top of its own range on the hike repricing. The session's sharpest single-stock move was Meta's, charted by the hour below.

Meta Platforms, hourly: the slide steepened after the 1 p.m. Central decision and the projections that came with it.

Breakouts & Breakdowns

Breakouts

JPMorgan (JPM) closed at $333.46, a record-area high, as the jump in the two-year brightened the outlook for lending margins and pushed the bank to fresh resistance; the prior peak is the next marker, with the 20-day the first support beneath.

Goldman Sachs (GS) finished just above $1,099, extending the banks' move higher with the group the rare patch of green as the yield curve repriced.

Breakdowns

Alphabet (GOOGL) gave back the $370 shelf and closed at $363.79, below its 20-day, with the early-June low near $355 the next support if the rate pressure on megacap growth persists.

D.R. Horton (DHI) failed the breakout it posted on Tuesday, slipping back to $152.48 and into the $146-to-$155 band it had just escaped; the 50-day near $150 is the first line to hold.

Top Movers

The session split between a rebound in the chipmakers that cratered Tuesday and a rate-driven retreat in the megacap names that carry the index.

Gainers

Broadcom (AVGO) rose 4.3% to $392.90, the strongest of the large-cap gainers, as buyers stepped back into the semiconductors that were crushed in Tuesday's rout. The move reclaimed the gap the stock left when it disappointed on guidance June 5, repairing a chart that had been the group's weak point, and it pulled the AI-networking names up with it. The bounce came even as the broad market fell, a sign the chip selloff earlier in the week had run to forced-seller levels.

Micron (MU) added 2.2% to $1,043.19 as the memory makers firmed ahead of Micron's own results late this month, the next real test of whether AI demand is broadening. Advanced Micro Devices (AMD) rose 1.0% to $512.48 in sympathy.

Losers

Meta Platforms (META) fell 5.0% to $567.58, the heaviest drag among the megacaps and the worst performer in the S&P 100. As the highest-duration of the large growth names, it absorbed the most damage when the discount rate jumped, and the market's lingering unease over hyperscaler spending compounded the move: Meta has guided 2026 capital expenditure to a range topping $125 billion, and on a risk-off day investors went back to questioning when that outlay pays off. The selling spread across the internet and software complex, where the highest valuations sit.

Microsoft (MSFT) dropped 3.6% to $378.91 and Amazon (AMZN) lost 3.4% to $237.50 on the same rate logic, the two carrying a large share of the index's point loss between them. The damage was concentrated in the names valued on the most distant earnings, the ones a higher-for-longer path discounts hardest.

Lennar (LEN) slid 3.7% to $86.48 as the homebuilders surrendered the rate-relief rally that took two weeks to build and came apart in an afternoon. D.R. Horton (DHI) fell 2.5% and PulteGroup (PHM) 2.3% on the same turn in yields, with the hawkish dots and a 30-year mortgage near 6.5% snuffing out the affordability bet the group had been pricing.

Key Macro Data Today

The calendar handed the Fed a hawkish setup hours before it spoke.

Retail sales nearly doubled the forecast and the prior month was revised down to 0.4%, making May's acceleration look sharper still and weakening the argument for any cut. The FOMC held as expected, but the new projections lifted the median year-end funds rate to 3.8% and the inflation forecast to 3.6%, with nine of eighteen officials now penciling in at least one increase this year. The crude draw was the tenth in a row, a reminder that physical demand stays firm even as the Iran accord pulls prices toward three-month lows.

Notable Earnings This Session

Both ends of the calendar stayed nearly empty in the mid-June lull.

Pre-Open

Ahead of the bell, the large-cap calendar was empty.

Post-Close

After the bell, the reporting slate stayed bare, leaving Micron's results, due the week of June 22, as the next marquee report and the clearest test of AI demand before quarter-end.

What Drove the Tape

The day arrived in two acts. Through midday equities drifted higher as the beaten-down chipmakers bounced and a hot retail-sales report reaffirmed a sturdy consumer. The second act belonged to the Fed: at 1 p.m. Central the projections showed nine of eighteen officials now expect at least one rate increase this year, with the median path lifted to a 3.8% year-end funds rate and the inflation forecast raised to 3.6%, and the selling began there. Treasury yields jumped, led by a roughly 14-basis-point surge in the two-year, the dollar pushed back above 100, and the longest-duration equities bore the brunt, with Meta, Microsoft and Amazon doing the heavy lifting on the way down. Warsh used his first press conference to argue that policy will stay restrictive until inflation breaks, per CNBC, and a market that spent the spring leaning toward cuts spent Wednesday afternoon pricing the reverse. The signal was in the curve: the thirty-year ended within a basis point of Tuesday while the front end lurched, the bond market showing it expects the Fed to choke inflation off rather than let it run.