Markets News, June 17, 2026: Stocks Slump as Fed Opens Door to Rate Hike; SpaceX Stock Snaps Winning Streak

Markets News, June 17, 2026: Stocks Slump as Fed Opens Door to Rate Hike; SpaceX Stock Snaps Winning Streak Colin Laidley Wed, June 17, 2026 at 2:38 PM GMT+2 18 min read ^DJI SPCX ^IXIC The Federal Reserve left interest rates unchanged on Wednesday, as economists expected Credit: Spencer Platt / Getty Images The major stock indexes tumbled after the Federal Reserve held interest rates steady and opened the door to a rate hike this year. The blue-chip Dow Jones Industrial Average, up as much as 0. 5% in early trading, dropped 1% Wednesday, while the benchmark S&P 500 shed 1.

2% and the tech-heavy Nasdaq Composite tumbled 1. 3%. Chip and other tech stocks slid yesterday , weighing on the Nasdaq and S&P 500, but the Dow rose to its second straight record close.

The Federal Reserve left interest rates unchanged on Wednesday, as economists expected, but nearly half of the policy committee's members forecast raising rates at least once this year. In March, the last time the committee published a forecast, no members thought hikes were in the cards, but resurgent inflation and a surprisingly strong labor market have changed the outlook. The Fed also significantly trimmed its policy statement, in line with new chair Kevin Warsh's plan to scale back the central bank's communications.

SpaceX ( SPCX ) stock's post-IPO rally ended on Wednesday when shares fell 5% . The stock soared in its third session yesterday to close 50% above its IPO. Tuesday's gains gave SpaceX a $2.

7 trillion market value , ranking it fifth among the world's most-valuable companies, between Amazon's ( AMZN ) $2. 65 trillion and Microsoft's ( MSFT ) $3 trillion; SpaceX was closer to $2. 5 trillion as of Wednesday's close.

Chip stocks rebounded from yesterday's slump, though the post-Fed sell-off ate into gains. The PHLX Semiconductor Index ( SOX ) rose nearly 1. 5%.

Mega-cap tech stocks were under pressure, with all of the Magnificent Seven stocks falling at least 1%. Oil prices were little changed after sliding yesterday ahead of the expected signing on Friday of a memorandum of understanding to halt fighting in the Middle East and reopen the Strait of Hormuz. West Texas Intermediate futures, the U.

S. benchmark, inched lower to $76 a barrel. Brent crude, the global benchmark, dipped to about $79 a barrel.

The 10-year Treasury yield, which influences interest rates on a variety of consumer loans including mortgages, jumped from 4. 45% on Tuesday to 4. 5%, its highest level since last week.

Treasury yields retreated over the past two weeks as a U. S. -Iran peace deal came into view.

Bitcoin in the late afternoon was trading at $64,200, its lowest price this week. Gold futures tumbled 2% to $4,265 a troy ounce. The U.

S. dollar index, which tracks the value of the greenback against a basket of foreign currencies, surged 1% to 100. 50.

Story Continues JUNE 17, 2026 AT 07:54 PM GMT SpaceX Stock Is Coming to an Index Fund Near You Soon Mark your calendars: SpaceX could be landing in your  index funds  as soon as next week. SpaceX ( SPCX ) will likely show up first in indexes managed by the Center for Research in Security Prices, or CRSP, and S&P Dow Jones Indices. Vanguard funds that track CRSP products, or BlackRock ( BLK ) and State Street ( STT ) ETFs that follow the S&P Total Market Index, could own the stock as early as Monday.

LSEG's Russell indexes and those maintained by MSCI ( MSCI)  will follow. Investors in SpaceX are eyeing the timing of possible index inclusions closely: It's generally seen as beneficial to a stock to be added to an index, which requires buying on behalf of funds that track those indexes. Timing those moves, however, isn't always easy.

While some index providers are clear about their timelines, making detailed announcements that include effective dates—when a stock is officially made a member of a given measure—others keep those details close, partly to stem front-running by traders looking to get ahead of  index additions . More recently, a few index providers  changed their rules  to fast-track big new companies like SpaceX into their products. For more on when SpaceX could—or in some cases, will—be added to a selection of indexes, read the full story here .

- Crystal Kim JUNE 17, 2026 AT 07:07 PM GMT Warsh Says He's Not Interested in the Market's Reaction To Fed Policy; Stocks Are Dropping "What we've given markets is a new chapter for the central bank, some fresh thinking," said new Fed Chair Kevin Warsh during his first post-meeting press conference on Wednesday. "What we've given markets, and households and businesses, I think, is a commitment to ask ourselves hard question such that we can deliver on the promises we've made before. This is a lot of change for financial markets to digest," he added.

Markets were struggling to digest all the change. Stocks wavered throughout Warsh's press conference before turning decisively lower with in the last hour of the session. The Nasdaq and S&P 500 were recently down about 0.

7%, while the Dow, up earlier in the day, slid 0. 5%. On Wednesday, he added he "wouldn't be particularly intrigued" by how financial markets react to the Fed's policy statement or his press conference.

Warsh reiterated his intention to change the way the Fed communicates with the public and Wall Street. Warsh has said he believes the Fed has at times boxed itself in by telegraphing future policy that members then feel compelled to carry through on. He abstained on Wednesday from answering questions about his and other policymakers' thoughts on the trajectory of monetary policy.

JUNE 17, 2026 AT 06:53 PM GMT SpaceX Stock Hasn't Logged a Full-Day Drop Yet. Could Today Be the Day? There hasn't been much red glare on traders' screens during SpaceX's rocketlike post-IPO run.

Today, though, there is. Shares of SpaceX ( SPCX ), Elon Musk's all-in-one AI, space exploration and connectivity business, were recently down more than 1% to around $199, after sliding as low as $187 earlier in the day. Recent prices have the stock—which finished Friday, its first day as a public company, above its IPO and open prices and then continued rising the next two sessions—looking at the possibility of a first-ever retreat.

Day-to-day price fluctuations are no big deal, but given the bullish reception for and massive attention paid to SpaceX, today's might be noteworthy: At recent prices, the shares would be 12% below yesterday's intraday high of just under $226. The early action in SpaceX has quickly put it in the biggest of the stock market's big leagues. While its IPO price, $135, implied a market capitalization of about $1.

8 trillion, indicating a place near the bottom of the top 10 companies by market value, but its subsequent gains have moved it into the top five, above Amazon ( AMZN ) and gaining on Microsoft ( MSFT ). They've made Elon Musk  a trillionaire on paper . And they've established the company, by some measures, as one of the Big Tech elite in the eyes of retail investors.

"This doesn't feel like the typical retail meme activity that accompanies parabolic moves," according to a note from Vanda Track that cited buying among retail investors in SpaceX shares far outstripping  ETFs with space themes  or geared toward using leverage  to supercharge bets  on the stock. "SpaceX is fast becoming a 'retail darling'. For years, that title was reserved for FAANG stocks, before evolving into the Magnificent 7.

We think the next evolution is the FAB 10: the Mag 7 names plus SpaceX, OpenAI and Anthropic. Together, these companies sit at the forefront of AI and technology, and are increasingly viewed by investors as the businesses most likely to shape the next decade. " Investors are now watching the possibility that SpaceX could soon be added to  some high-profile indexes , which is expected to spur buying by funds that track those measures.

SpaceX  rose yesterday , climbing about 5% after announcing the all-stock acquisition of AI coding agent Cursor. That had them up nearly 50% from their IPO price. - David Marino-Nachison JUNE 17, 2026 AT 06:13 PM GMT Fed Holds Key Interest Rate Steady As Inflation Concerns Linger As widely expected, the FOMC unanimously voted to leave its key interest rate unchanged Wednesday at 3.

5% to 3. 75%, the same as it’s been since December. The decision marks a continuation of the central bank’s “wait-and-see” approach to monetary policy in recent months.

Officials have been divided about their next move. Central bankers could raise interest rates to push down inflation, which is running at double the Fed’s 2% annual target, or lower them to shake the job market out of its low-hiring, low-firing limbo. “Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East,” the Fed’s policy committee said in its post-decision statement.

The language of the statement gave little indication about the Fed’s intentions in future meetings, reflecting either uncertainty about the trajectory of the economy in the coming months. - Taylor Tompkins and Diccon Hyatt JUNE 17, 2026 AT 05:36 PM GMT Why Some Analysts Think the Market Outlook for 2026 Just Got Brighter The events of the past few days have some Wall Street experts feeling good about U. S.

stocks. Analysts at Wells Fargo this week lifted their year-end target for the S&P 500 to 7950 from 7300, on anticipation of easing macroeconomic concerns after the U. S.

reached a  peace deal with Iran  over the weekend. The index, recently around 7500, rallied Monday following the news, though it later pulled back as tech stocks retreated. Meanwhile, SpaceX's ( SPCX )  blockbuster market debut  could also be a positive signal for investor appetites that could kickstart the "next leg of the bull market," sending the benchmark as high as 9000, Evercore ISI analysts wrote over the weekend.

The stock, down about 4% in recent trading, has nevertheless climbed some 40% from its initial public offering price, a move that had made CEO Elon Musk the  world's first trillionaire . Wedbush analysts led by longtime tech bull Dan Ives in a note to clients Tuesday called the IPO a "Goldilocks outcome" for the tech sector, "disproving a lot of the bear noise and fears" seen in recent weeks.  "We believe the tech rally we saw to kick off the week is a sign of the times," and a "green light to own tech stocks," he wrote.

The bullish notes follow  target hikes from other firms in recent weeks , despite worries about the war and rising inflation, on expectations of strengthening fundamentals and improving sentiment around the AI trade after a flurry of better-than-expected corporate earnings reports. With a possible end of the war reducing inflation risks, and expectations that the Fed could raise rates this year "already priced in," Wells Fargo analysts now see a summer "everything rally" in store, with "room for upside in the AI trade. " A Federal Reserve interest-rate decision is slated to  arrive later today , and the arrival of a new Fed chair could signal a new direction for rate policy.

( Investopedia  is covering today's  Fed meeting live here . ) The Wells Fargo analysts warned they'd be more cautious heading into midterm elections, however, given historical performance trends in midterm years, and worries that potential "jawboning around policy measures to slow AI progress could drag the index. " UBS analysts, who had raised their S&P 500 target to 7900 from 7500 last month, said in a post Tuesday that a new White House policy directive restricting foreign access to Anthropic's latest models has raised some concerns about the possibility that efforts to regulate AI could "weaken investor confidence in semiconductor demand" and throw a wrench in the AI sector's growth.

"For investors, this matters because AI, and especially AI-related semiconductors, have been a central driver of equity gains this year, with semiconductor stocks accounting for more than half of the S&P 500's year-to-date advance," they wrote, though the analysts said they "continue to advocate exposure across AI-related equities. " - Kara Greenberg JUNE 17, 2026 AT 04:24 PM GMT Here's How Much Accenture Stock Is Expected To Move After Earnings on Thursday Accenture is set to report earnings ahead of the opening bell Thursday, with traders anticipating a big move from the IT and consulting firm's stock following the results. Based on recent options pricing, Accenture shares are seen swinging up to about 7% in either direction by the end of the holiday-shortened trading week.

A move of that size from Tuesday's close could see shares rise as high as $177, or fall below $154, which would be Accenture's lowest level since early 2019. Accenture shares are down nearly 40% since the start of the year, amid worries about AI-driven disruption impacting the IT and professional services industries where Accenture does much of its business. Ahead of the report, Goldman Sachs analysts said they see investors still being "negatively positioned" on Accenture and the broader IT sector.

The analysts said said in addition to the AI disruption worries, geopolitical disruptions like the Iran war could also negatively impact spending among businesses, which could hamper Accenture's sales. Accenture is expected to report fiscal third-quarter revenue of $18. 8 billion, up 6% year-over-year, along with adjusted earnings per share of $3.

72, up from $3. 49 the same time a year ago. Accenture's bookings are seen growing to $20.

97 billion, up about 6. 5% year-over-year. Of the six Wall Street analysts with current ratings tracked by Visible Alpha, three have said they consider Accenture a "buy," while three have neutral ratings.

Their mean target of $236 would suggest more than 40% upside from Tuesday's close. - Aaron McDade JUNE 17, 2026 AT 03:47 PM GMT Broadcom, Semi-Caps Lead Chip Stock Rebound From Tuesday's Rout Chip stocks found their footing on Wednesday, with the PHLX Semiconductor Index ( SOX ) up more than 3% in recent trading after leading the tech sector lower yesterday. Custom chipmaker Broadcom ( AVGO ) was among the index’s top performers Wednesday.

Its shares rose more than 5% after JPMorgan analysts reiterated their overweight rating on the stock and said they “would be aggressive buyers at current levels. ” The analysts, in a note on Tuesday, encouraged investors to “ignore the noise,” referring to rumors Broadcom and partner Google ( GOOG ) had delayed or canceled their plans to develop a next-generation custom AI chip. JPMorgan analysts believe, based on their research, “that the team remains on track to ramp” development in 2028.

They forecast Broadcom’s AI revenue will at least double year-over-year in both 2027 and 2028. They believe investors are underestimating Broadcom’s dominance in the custom chip business, as well as its packaging design leadership, IP portfolio, and “track record of execution. ” The SOX index also got a boost Wednesday from semi-caps—the companies that supply chipmakers with the specialized manufacturing equipment.

Citigroup analysts in a note on Wednesday forecast chipmakers will spend $250 billion on that equipment in 2028, a 25% increase from their expected 2027 spend. “We are more constructive on 2028 [wafer fabrication equipment] given continued capacity constraints and expansion at both TSMC and memory makers, as well as recent progress at Intel and Samsung foundries,” the analysts wrote. Hyperscalers like Microsoft ( MSFT ), Alphabet, and Amazon ( AMZN ) have been saying for years that they can’t build and equip data centers fast enough to meet booming AI demand.

As a result, the data center buildout is also fueling a push to add chip manufacturing capacity, boosting the sales of equipment suppliers. Citi on Wednesday raised its price target on shares of Applied Materials ( AMAT ) by about 30%, and lifted its Lam Research ( LRCX ) and KLA Corp. ( KLAC ) targets by about 40%.

Applied Materials stock was up more than 7% in recent trading, making it one of the S&P 500’s top performers. Lam Research and KLA Corp were up 5% and 3%, respectively. Chip stocks have been on a wild ride this month.

The SOX index soared through April and May, and as of early June was up nearly 100% since the start of the year. But the relentless rally hit resistance at the start of the month when it briefly entered a correction. Some experts attributed the slump to investors taking profits on their best-performing stocks to free up money for the SpaceX ( SPCX ) IPO just over the horizon at the time.

As of Wednesday, SOX is up more than 4% since SpaceX’s Friday debut , while SpaceX stock has risen more than 40% from its IPO price. JUNE 17, 2026 AT 03:13 PM GMT Follow Investopedia's Live Coverage of Today's Federal Reserve Decision The Federal Reserve is widely expected to hold its influential federal funds rate unchanged on Wednesday, but investors will be picking apart the central bank's policy statement, inflation and interest rate projections, and chair Kevin Warsh's first post-meeting press conference. For the latest news and analysis of the Fed's decision, follow along with Investopedia 's Fed meeting live blog here .

JUNE 17, 2026 AT 02:17 PM GMT Jabil Stock Gains on Earnings Beat, Raised Forecast Shares of Jabil ( JBL ) jumped on Wednesday after the provider of electronics engineering and manufacturing services reported better-than-expected quarterly earnings and raised its full-year sales and earnings forecasts. Jabil on Wednesday reported fiscal third-quarter earnings of $275 million, or $2. 59 cents per diluted share.

Revenue grew 12% to $8. 75 billion. The results exceeded Wall Street’s expectations on both the top and bottom lines.

“AI infrastructure demand remains extremely strong, and our full-year AI-related revenue outlook is now meaningfully higher,” said CEO Mike Dastoor in a press release Wednesday. The company saw improvement in businesses that had been pressured in the past, including its automotive and connected living units, Dastoor added. Jabil raised its the full fiscal-year guidance, lifting its revenue forecast to $35 billion from $34 billion last quarter.

The company now expects to post core diluted earnings of $12. 70 per share, up from last quarter’s forecast of $12. 25.

Jabil shares were up 7% in recent trading after paring gains exceeding 13% earlier in the session. Heading into Wednesday, the stock was up about 65% since the start of the year. JUNE 17, 2026 AT 01:38 PM GMT What To Expect From Wednesday's Fed Decision The Federal Reserve will have its first meeting under the new management next week, and no one is entirely sure exactly what to expect.

One thing is nearly certain: the central bank is overwhelmingly likely to keep its influential  fed funds rate  flat for the time being. Financial markets are pricing in a 99% chance the Fed will hold rates steady, according to the CME Group's FedWatch tool, which forecasts rate movements based on fed funds futures trading data. Beyond that, however, there are many open questions about how Warsh will lead the Fed into its next era.

Warsh is taking leadership of the Fed at a time when it faces increasing risks to its  dual mandate from Congress  to keep inflation in check and employment high. The former Fed governor's approach to monetary policy will be tested immediately: the Iran war is pushing up  energy prices , threatening to stoke more persistent and widespread inflation. Warsh has been silent about his prescription for the Fed's monetary policy since President Donald Trump began considering him for the nation's top banking job last year.

Before that, however, he  advocated for a lower fed funds rate , in line with Trump's frequently repeated demands. Whether that preference has survived the past year of economic changes is one of the major open questions that could be answered at Wednesday's meeting. The fed funds rate is central bankers' main tool for managing  monetary policy .

The Fed raises it when its goal is to push up borrowing costs across the economy to discourage borrowing and spending and stifle inflation. Its playbook calls for  rate cuts  when the economy is weak and inflation is low, thereby boosting the job market. These days, high  inflation is on the minds  of many policy committee members, since the Iran war has  pushed up prices for gasoline and other necessities .

Meanwhile, the  job market has remained resilient , with unemployment near historic lows. Given the recent resurgence of inflation, Warsh may find it a tough sell to convince a majority of the  committee  that a cut is the right move, even if he thinks so. "If a very dovish Warsh shows up, that may breathe some life into the utterly deflated prospects for a cut," economists at Wells Fargo Securities led by chief economist Tom Porcelli, wrote in a commentary.

"Unfortunately for Warsh (assuming he actually does have dovish leanings), the economic reality is recent data and our sense of the FOMC's reaction function argue there is a high hurdle to cut at this juncture. But let's see what he has to say. " Read the full story here .

- Diccon Hyatt JUNE 17, 2026 AT 12:38 PM GMT Major Stock Indexes Mixed in Premarket Trading Futures contracts connected to the Dow Jones Industrial Average were down about 0. 1% in premarket trading on Wednesday. S&P 500 futures were little changed.

Nasdaq 100 futures advanced 0. 5% as chips stocks rebounded from Tuesday's sell-off.