US Futures Steady as Rate Bets Split on Fed Day: Markets Wrap
(Bloomberg) — US stock futures and bonds steadied with oil as investors awaited the Federal Reserve’s first policy decision under Chair Kevin Warsh.
Contracts on the S&P 500 were little changed, while Brent crude stabilized near $79 a barrel after a four-day slide. Nasdaq 100 futures rose 0.6%, signaling a rebound after chip stocks led US equities lower on Tuesday. The dollar was steady, along with the 10-year US Treasury yield which held near a one-month low.
Investors remain divided on the Fed’s next move, with forecasts ranging from rate cuts to multiple increases over the coming year. Oil has slumped on expectations a US-Iran agreement to reopen the Strait of Hormuz will boost supply and ease inflation pressures, prompting investors to reassess the outlook for global interest rates on Fed day.
“We’re all poised for a hawkish, ready-to-fight inflation Warsh,” Ian Lyngen, head of US rates strategy at BMO Capital Markets, said in an interview with Bloomberg TV. “What happens if he comes out and he’s a lot more dovish?”
While traders have eased their most intense expectations for interest rate hikes, they still have priced in a full quarter-point increase by the end of the first quarter of 2027.
Markets are also watching for changes in Fed communications under Warsh. Bloomberg Economics expects the new chair to forgo submitting his own interest-rate projection to the closely watched dot plot, a break from the practice followed by Jerome Powell, Janet Yellen and Ben Bernanke.
“Warsh faces a formidable challenge, striking a balance between President Trump’s desire for lower rates and signalling to the market that he is a credible and independent Fed chair,” said Bank J Safra Sarasin equity strategist Wolf von Rotberg. “Inflationary pressures in the US are unlikely to abate quickly. Solid growth and elevated core inflation suggest a hawkish bias, regardless of oil prices.”
On the geopolitical front, the US and Iran are preparing to formally sign a memorandum of understanding on June 19 in Switzerland. Still, governments, energy investors and shipping companies remain cautious about how quickly traffic through the Strait of Hormuz can return to normal.
Corporate Highlights:
SpaceX shares are poised for a fourth straight day of gains, reinforcing the company’s place among the world’s largest after it surpassed Amazon.com Inc. by market value. La-Z-Boy shares advanced 17% in premarket trading Wednesday after the home furniture store’s reported adjusted earnings per share for the fourth quarter beat the average analyst estimate. BMW AG slumped by as much as 12% after cutting its profitability forecast and expanding cost cuts, citing weaker demand in China. Ferrari NV is using orders for its Luce electric car as a loyalty test for wealthy clients, signaling that support for the poorly received model may help preserve access to more desirable cars, people familiar with the matter said. Hapag-Lloyd shares gain following a Manager Magazin report that Mediterranean Shipping Company owner Gianluigi Aponte has enquired with shareholders in the German container shipper about buying a stake. Some of the main moves in markets:
Stocks
S&P 500 futures rose 0.1% as of 7:03 a.m. New York time Nasdaq 100 futures rose 0.6% Futures on the Dow Jones Industrial Average were little changed The Stoxx Europe 600 rose 0.4% The MSCI World Index fell 0.4% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1597 The British pound fell 0.1% to $1.3412 The Japanese yen rose 0.1% to 160.25 per dollar Cryptocurrencies
Bitcoin fell 1.7% to $64,687.86 Ether fell 1.7% to $1,765.14 Bonds
The yield on 10-year Treasuries was little changed at 4.43% Germany’s 10-year yield was little changed at 2.92% Britain’s 10-year yield declined five basis points to 4.74% Commodities
West Texas Intermediate crude rose 0.3% to $76.30 a barrel Brent crude rose 0.2% to $79.08 a barrel Spot gold was little changed This story was produced with the assistance of Bloomberg Automation.
–With assistance from Vonnie Quinn and Shikhar Balwani.
©2026 Bloomberg L.P.
