The S&P 500 Index is up +0.07%, the Dow Jones is up +0.06%, and the Nasdaq 100 is up +0.10% as investors await results from the 2-day FOMC meeting, with expectations for unchanged interest rates. The 10-year T-note yield decreased by 2 basis points to 4.36% following weaker than expected US housing data, with May housing starts dropping 9.8% to a five-year low of 1.256 million.
Geopolitical tensions in the Middle East continue as hostilities between Israel and Iran enter their sixth day. President Trump’s meeting with his national security team has sparked speculation regarding US involvement in military actions against Iran, despite ongoing discussions for mediation with Pakistan. The vital Strait of Hormuz remains open, though navigation signals for over 900 vessels have faced disruptions due to Iranian interference.
In economic news, US MBA mortgage applications fell 2.6%, with the average 30-year fixed mortgage rate decreasing to 6.84% from 6.93%. Negative tariff news is anticipated as President Trump prepares to send letters imposing unilateral tariffs, coinciding with a market that discounts chances of a 25 basis point rate cut at the upcoming FOMC meeting.
