Finance

U.S. equity indexes turned lower after the Federal Reserve's hawkish signals, with the S&P 500 and Nasdaq each falling approximately 0.8%. While the Dow Jones Industrial Average had reached a fresh intraday record earlier in the session, it eventually closed in negative territory as rising Treasury yields pressured the broader market. Technology and semiconductor stocks were among the hardest hit, with the Philadelphia Semiconductor Index seeing significant declines.

Oil prices have retreated below $80 per barrel as traders weigh a tentative agreement between the U.S. and Iran aimed at ending hostilities and reopening the Strait of Hormuz. Despite a slight daily uptick following comments that the deal is not yet final, Brent and WTI futures remain well below recent highs of $100. The International Energy Agency concurrently downgraded its 2026 demand forecast due to the long-term impact of Middle Eastern supply disruptions.

The yield on the 10-year Treasury note climbed to 4.49% following the Federal Reserve's release of its quarterly "dot plot," which bolstered expectations for higher-for-longer borrowing costs. The 2-year yield, highly sensitive to near-term policy changes, saw an even sharper increase, rising nearly 10 basis points to reach its highest level since early 2025. These moves were further supported by a stronger-than-expected retail sales report for May, which indicated continued consumer resilience.