Wall Street Rises Ahead Of Fed, Payment Stocks Fall On Stablecoin Bill: What's Driving Markets Wednesday?

U.S. stocks inched higher by midday Wednesday, as traders weighed geopolitical uncertainty and awaited the Federal Reserve's June policy decision.

President Donald Trump declined to offer a clear response on whether the U.S. would directly intervene in the escalating Israel-Iran conflict.

The Federal Reserve is widely expected to hold rates steady at 4.25%-4.50% for a fourth consecutive meeting. Yet, investor focus is centered on the updated Summary of Economic Projections.

Economists anticipate the new dot plot will reflect a median expectation of just one rate cut in 2025—down from two in March—alongside modest upward revisions to inflation and downward adjustments to growth forecasts.

• The S&P 500 hovered slightly above the 6,000 mark.
• The Nasdaq 100 gained over 100 points to trade around 21,860.
• Small caps outperformed, with the Russell 2000 climbing 1%.

On a sector basis, consumer discretionary led gains, while energy stocks declined, reversing Tuesday's strength.

Among megacaps, Visa Inc. (NYSE:V) and Mastercard Inc. (NYSE:MA) slid after the U.S. Senate passed a bill introducing a regulatory framework for stablecoins. Meanwhile, Coinbase Global Inc. (NASDAQ:COIN) surged 12% to a four-month-high.

In the bond market, Treasury yields declined, with the 30-year yield falling to 4.85%. Oil prices dropped 1.8% to $72 per barrel after Trump's noncommittal stance on Iran dented expectations of a supply shock.

Gold rose 0.2%, silver slipped 0.7%, and Bitcoin (CRYPTO: BTC) held steady at $104,800.

Wednesday’s Performance In Major US Indices, ETFs

According to Benzinga Pro data:

• The Vanguard S&P 500 ETF (NYSE:VOO) rose 0.4% to $551.
• The SPDR Dow Jones Industrial Average (NYSE:DIA) inched 0.4% higher to $424.77.
• The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) rose 0.4% to $531.28.
• The iShares Russell 2000 ETF (NYSE:IWM) rallied 1.1% $210.91.
• The Communication Select Sector SPDR Fund (NYSE:XLC) outperformed, up 0.6%; the Energy Select Sector SPDR Fund (NYSE:XLE) lagged, down 0.6%.

Wednesday’s Stock Movers

• Intel Corp. (NASDAQ:INTC) rallied 3.8% after the chipmaker company appointed Greg Ernst as new chief revenue officer as well as three new engineers.
• Lockheed Martin Corp. (NYSE:LMT) dropped 2%, erasing Tuesday's gains, as Trump's comments prompted investors to scale back exposure to defense contractors.
• Jabil Inc. (NYSE:JBL) soared 3.85%, extending all-time highs following Tuesday’s 9% rally amid stronger-than-expected earnings.
• Wolfspeed Inc. (NYSE:WOLF) plunged 17% after announcing plans to enter a prepackaged bankruptcy agreement with lenders, including Apollo Global Management. The company aims to streamline its Chapter 11 process and will seek creditor approval before officially filing.
• Grail Inc. (NASDAQ:GRAL) surged 12% after reporting encouraging results from its latest cancer detection test.

Now Read:

• Mohamed El-Erian Warns Fed’s Path Forward Is Clouded By Trump Tariffs And Israel-Iran Conflict
  

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