Traders at the New York Stock Exchange saw a slight decline in the S&P 500 on June 18, 2025, as investors kept a close eye on ongoing developments in the Middle East and contemplated potential future interest rate cuts from the Federal Reserve. The broad market index fell 0.22%, closing at 5,967.84, marking its third consecutive losing session. The Nasdaq Composite dropped by 0.51%, ending at 19,447.41, while the Dow Jones Industrial Average inched up by 35.16 points, or 0.08%, closing at 42,206.82.
Adding to market pressures, chip stocks faced declines following a report from The Wall Street Journal indicating that the U.S. government might revoke waivers for certain semiconductor manufacturers. Nvidia experienced a drop of over 1%, and Taiwan Semiconductor Manufacturing reported a nearly 2% slide. The VanEck Semiconductor ETF (SMH) fell by almost 1% as well.
The trading session began positively after Federal Reserve Governor Christopher Waller hinted at the possibility of interest rate cuts as early as July. “I think we’re in the position that we could do this and as early as July,” Waller stated during an interview on CNBC’s “Squawk Box.” He acknowledged that while this was his viewpoint, the ultimate decision would depend on the committee. This optimistic outlook was tempered by remarks from Fed Chair Jerome Powell on Wednesday, where he expressed caution regarding rate cuts, emphasizing that the central bank remained data-dependent amid uncertainties surrounding the economic impact of President Donald Trump’s tariffs. Following Powell’s comments, the S&P 500 had closed lower that day.
President Trump criticized Powell again on Thursday, claiming that the Fed Chair’s delay in cutting rates was costing the U.S. “hundreds of billions of dollars.” Ahead of the Fed’s decision, Trump labeled Powell as “stupid,” predicting that he “probably won’t cut” rates.
Geopolitical tensions also weighed heavily on the markets, particularly in relation to the Israel-Iran conflict. Reports indicated that Israeli Prime Minister Benjamin Netanyahu had ordered military strikes on “strategic and government targets” in Iran. Trump is reportedly considering a direct U.S. military response, with a final decision expected within two weeks. The President has previously called for Iran’s complete surrender, a sentiment met with backlash from Iran’s supreme leader, Ayatollah Ali Khamenei, who deemed the idea “threatening and ridiculous.”
Amid these uncertainties, Sam Stovall, chief investment strategist at CFRA Research, noted, “With so much uncertainty going on in this world, who really wants to go long over the weekend?” He indicated that the S&P 500 remains around 3% below its recent 52-week high, pointing out that “prior highs act like rusty doors and require several attempts before finally swinging open.” Stovall mentioned that a de-escalation of geopolitical tensions could bring some relief to the markets.
For the week, the S&P 500 reported a decline of about 0.2%. The Dow managed a slight weekly gain of 0.02%, while the Nasdaq advanced by 0.2%.
As traders stay vigilant, the interplay of geopolitical issues and monetary policy will likely continue to shape market movements in the coming weeks.
Original Source: https://www.cnbc.com/2025/06/19/stock-market-today-live-updates.html
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Publish Date: 2025-06-21 04:40:00
