FX.co ★ US Equities Struggle to Find Traction

In the afternoon trading session, U.S. stocks exhibited uncertain movement as investors considered various factors, including geopolitical tensions, Federal Reserve policy signals, and challenges facing semiconductor stocks. The S&P 500 experienced a slight decrease of 0.1%, while the Nasdaq recorded a decline of 0.3%. In contrast, the Dow Jones Industrial Average benefitted from nearly a 100-point increase, driven by optimism regarding potential Federal Reserve interest rate reductions possibly occurring as soon as July. This sentiment was fueled by comments from Governor Christopher Waller, which offered a divergence from Fed Chair Jerome Powell’s previous position that the central bank is not in a hurry to ease policy, especially given the inflation risks associated with tariffs imposed by President Trump. In the semiconductor sector, stocks such as Nvidia, Broadcom, and TSMC saw declines of over 1% following reports that the United States might revoke export waivers, heightening concerns within the industry. On the geopolitical front, market tensions persisted due to President Trump's decision to postpone a determination on U.S. military involvement in the Iran-Israel conflict, thereby allowing space for diplomatic negotiations. For the week, the S&P 500 increased by 0.2%, the Dow rose by 0.3%, and the Nasdaq gained 0.5%.