Finance

The Federal Open Market Committee maintained the federal funds rate at 3.50%-3.75% during its June 2026 meeting, the first under new Chair Kevin Warsh. However, the committee's updated dot plot revealed a surprise hawkish pivot, with half of the officials now projecting at least one rate hike before the end of the year. This shift stems from persistent inflation concerns, as PCE inflation forecasts for 2026 were revised sharply higher to 3.6%.

The Nasdaq recorded a historic trading volume of 4.59 billion shares worth approximately $334 billion in a fraction of a second during the semi-annual Russell US Index reconstitution. This rebalance saw significant style shifts for major tech companies like Apple and Microsoft, which moved toward a more balanced blend of growth and value. Additionally, the tech-heavy index added AI-focused firms such as Astera Labs and CoreWeave to its ranks.

Space Exploration Technologies Corp. (SpaceX) successfully completed its highly anticipated initial public offering on the Nasdaq, with shares surging 19% on their first trading day. Valued at roughly $2 trillion, the company was immediately designated for fast-entry into the Russell 1000 and is scheduled to join the Nasdaq-100 on July 7, 2026. Despite its massive valuation, it was blocked from S&P 500 inclusion due to specific profitability requirements.