Stocks Drift as Fed Decision Looms; Oil Below $80 on US-Iran Deal
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- Markets drifted higher with the S&P 500 up 0.1%, the Dow gaining 40 points, and the Nasdaq up 0.3% as of 9:35 a.m. ET, all eyes on the Fed's afternoon announcement
- Jabil surged 12.4% after beating quarterly expectations, with CEO Mike Dastoor saying "AI infrastructure demand remains extremely strong"; Broadcom and Micron Technology each climbed 2.3%
- La-Z-Boy jumped 26.3% on stronger-than-expected profit and revenue, though CFO Taylor Luebke struck a cautious note with a "measured view" of the broad sales environment
- The Federal Reserve is widely expected to leave rates unchanged; investors are focused on the rate-path projections and Kevin Warsh's first meeting as Fed chair
- Oil pulled back below $80 per barrel after the U.S. and Iran reached a tentative deal — Brent crude rose 1.1% to $79.82, still above the ~$70 pre-war price but well below the $100+ peak from weeks ago
- Iran is set to immediately reopen the Strait of Hormuz once the deal is signed, allowing oil tankers to exit the Persian Gulf and deliver crude worldwide
- Traders remain split on the Fed's path — some betting on a cut that Trump has demanded, the most popular bet is no move, and some still see a rate hike as the most likely outcome, per CME Group data
Why it matters: The Fed's projections and Kevin Warsh's debut as chair will shape rate expectations for the rest of the year, and traders are genuinely divided — with some still pricing in a rate hike even as oil retreats from $100+ to below $80 on the tentative Iran deal and easing inflation pressure.
