Finance

In the first meeting under new Chair Kevin Warsh, the Federal Reserve kept the federal funds rate steady at a range of 3.50% to 3.75%. While the pause continues, updated economic projections indicate a growing hawkish bias among officials, with many now anticipating at least one rate hike before the end of 2026 to combat elevated inflation.

The U.S. has granted Iran a sweeping 60-day license to sell oil on global markets, marking a significant rollback of sanctions as diplomatic peace talks progress. This development led to a roughly 3% decline in crude oil prices, providing a potential tailwind for transportation stocks while slightly easing broader inflationary pressures stoked by recent Middle East tensions.

Amidst the volatility in the technology sector, investors have begun rotating into defensive asset classes, leading to gains in consumer staples and healthcare. Market participants are increasingly looking toward sectors with resilient earnings, such as healthcare distributors and retail giants, as a hedge against potential summer market turbulence.