Finance

The Federal Open Market Committee commenced its June 16-17 meeting, the first presided over by new Chair Kevin Warsh. Markets widely expect interest rates to remain steady in the 3.50%-3.75% range, though analysts are closely watching the updated 'dot plot' for future policy shifts. While some economists anticipate a move toward a neutral policy stance, recent geopolitical developments and sticky core inflation have reduced the probability of any rate cuts for the remainder of 2026.

Nvidia successfully raised $25 billion through its first investment-grade bond offering in five years to support its dominant position in the artificial intelligence market. The offering saw high demand, with subscriptions reaching $85 billion, reflecting strong institutional confidence despite recent volatility in AI-related stocks. These funds are earmarked for general corporate purposes, including refinancing existing debt and accelerating the production of next-generation AI infrastructure.

U.S. Treasury yields declined across the curve as a decrease in global uncertainty led to a pullback in the U.S. dollar and oil prices. The benchmark 10-year note yield dropped to approximately 4.46% as traders reassessed the likelihood of further interest rate hikes following reports that the Strait of Hormuz could reopen. This retreat in yields provided additional momentum for growth-oriented sectors and contributed to a broader recovery in risk assets.