US stock futures fell as investors braced for ongoing Israel-Iran hostilities that could draw in the US, along with the Federal Reserve’s upcoming interest rate decision.
Futures attached to the Dow Jones Industrial Average (YM=F), the benchmark S&P 500 (ES=F), and the tech-heavy Nasdaq 100 (NQ=F) slipped 0.3%.
President Trump met with his national security team on Tuesday to discuss Israel and Iran, raising speculation that the US could join Israel’s attack. The White House did not provide any details on the meeting, and the president spoke with Israeli Prime Minister Benjamin Netanyahu afterward. Iran has reportedly readied missiles for strikes on US bases in the event the US takes action.
Stocks fell during the day on Tuesday and oil jumped as Trump appeared to more directly align with Israel’s aims in Iran, saying “our patience is wearing thin” and calling for “unconditional surrender” from Iran. Reports also circulated ahead of his national security meeting that the president is seriously considering joining Israel’s strikes. The developments marked a dramatic shift from the day before, when Iran said that it wanted to reach a ceasefire and return to the negotiating table on its nuclear program.
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Prior to Israel’s opening salvo on Iran Friday, Wall Street anticipated the Fed’s next interest rate announcement would dominate market news this week. The central bank is due to reveal its decision on Wednesday at 2 p.m. ET, and analysts expect policymakers to hold rates steady. The Fed’s “dot plot” and Fed Chair Jerome Powell’s comments at a 2:30pm ET press conference will be in high focus as investors seek clues as to whether two rate cuts are still on the table this year.
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Stock market coverage for Wednesday, June 18, 2025.