Market Overview
U.S. stocks climbed higher on Wednesday, June 18, 2025, as investors awaited the Federal Reserve’s interest rate decision while monitoring ongoing tensions in the Middle East. The major indices all posted gains despite geopolitical concerns and disappointing housing data.
The S&P 500 advanced 0.5% to 6,010.41, while the Dow Jones Industrial Average rose 0.6%, adding 258 points to reach 42,403.03. The tech-heavy Nasdaq Composite gained 0.6% to 19,637.94, continuing its strong monthly performance with a 2.22% increase over the past 30 days.
Geopolitical Tensions and Economic Data
Today’s market recap comes amid escalating conflict between Israel and Iran, now in its sixth day. Iran’s supreme leader, Ayatollah Ali Khamenei, warned that the U.S. would face “irreparable damage” if it entered the conflict, while President Donald Trump has threatened “unconditional surrender” from Iran.
“The market just seems very keen to fade geopolitical risk,” Zachary Hill, head of portfolio management at Horizon Investments, told CNBC. “That has been historically the right thing to do, so I think that’s kind of what’s driving us so far today.”
On the economic front, new housing construction hit its lowest level in five years for May, according to the Commerce Department. Housing starts ran at a seasonally adjusted annual rate of 1.256 million, down 9.8% from April and well below economists’ expectations of 1.35 million. Building permits also declined 2% to 1.393 million, missing forecasts of 1.42 million.
Fed Decision in Focus
The stock market today is primarily focused on the Federal Reserve’s interest rate decision, scheduled for 2 p.m. ET. While the central bank is widely expected to hold rates steady, investors are closely watching for Fed Chair Jerome Powell’s comments and the updated “dot plot” showing policymakers’ rate expectations.
President Trump criticized Fed Chair Powell ahead of the decision, calling him “stupid” and expressing doubt that the central bank would cut interest rates. “Europe had 10 cuts, and we had none,” Trump remarked outside the White House.
Top Performers and Laggards
In today’s markets today session, several stocks stood out among the gainers and losers. On the Nasdaq, top performers included Gilead Sciences (GILD) up 2.93%, Intel (INTC) gaining 2.45%, and Tesla (TSLA) advancing 1.93%.
Meanwhile, PayPal (PYPL) led the Nasdaq decliners, falling 3.14%, followed by JD.com (JD) down 2.20%, and Alibaba (BABA) dropping 1.53%.
Among Dow components, financial stocks showed strength with Goldman Sachs (GS) rising 2.17% and JPMorgan Chase (JPM) adding 2.15%. On the downside, Visa (V) fell 3.17%, while Dow Inc. (DOW) declined 2.41% and Salesforce (CRM) slipped 1.67%.
The CBOE Volatility Index, often referred to as the market’s fear gauge, decreased 0.93% to 20.67 points, suggesting reduced investor anxiety despite the ongoing geopolitical tensions.
Earnings in Focus
After the market news today, several companies are set to report earnings. Smith & Wesson Brands (SWBI) and Aurora Cannabis (ACB) will release their quarterly results after the market close, with options data suggesting potential stock moves of 13.06% and 17.86%, respectively.
Earlier today, Progressive Corp (PGR) and Kroger Co (KR) reported their quarterly earnings before the market opened. Other companies reporting included GMS Inc (GMS) and Winnebago Industries (WGO).
Looking Ahead
As this todays stock market recap concludes, investors should keep an eye on the Federal Reserve’s decision and commentary, which could significantly impact market direction in the coming days. Additionally, weekly jobless claims data released today showed 245,000 initial claims, slightly below the estimate of 246,000, indicating continued resilience in the labor market.
The ongoing Middle East conflict remains a key risk factor for markets, with potential implications for oil prices and global economic stability. Traders will also be watching for any developments in U.S.-China relations, particularly regarding technology companies and trade policies.
With the S&P 500 hovering above the 6,000 mark and the Dow maintaining levels above 42,000, market news today suggests investors remain cautiously optimistic despite geopolitical and economic challenges.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.