FX.co ★ US Stocks Erase Gains

U.S. stocks experienced a decline in afternoon trading as investors continued to evaluate the prospects of U.S. monetary policy amidst escalating geopolitical tensions. Initially, the S&P 500, Dow Jones, and Nasdaq 100 had risen by up to 0.5%, but each ended slightly lower. The Federal Reserve's decision to keep interest rates steady was anticipated, with FOMC members affirming projections for two additional rate reductions this year. However, they acknowledged that the prevailing uncertainty diminishes the reliability of such forecasts. Furthermore, the economic projections painted a bleak picture of the macroeconomic environment, factoring in tariffs and erratic economic policies. Expectations for rate cuts in the upcoming years have been scaled back, while concerns over growth, unemployment, and stagflation have intensified. Meanwhile, President Trump maintained a firm stance on Iran but noted that Tehran has expressed a willingness to engage in discussions. Shares of Visa, Mastercard, and PayPal each dropped by more than 4% following the Congressional passage of its stablecoins act.