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June 17, 2026 - 11:28
3 minutes
(Bloomberg) — US stock futures advanced while oil steadied as investors awaited the Federal Reserve’s policy decision for clues on the interest-rate outlook.Nasdaq 100 futures rose 0.6%, signaling a rebound after chip stocks led US equities lower on Tuesday. S&P 500 contracts gained 0.2%. BMW AG slumped by as much as 12% after cutting its profitability forecast and expanding cost cuts, citing weaker demand in China.Investors remain divided on the Fed’s next move, with forecasts ranging from rate cuts to multiple increases over the coming year. The bond market tilted toward a more dovish outcome, with the 10-year Treasury yield falling one basis point to hover near a one-month low. Benchmark yields also declined across Europe and Asia.Brent crude pared a four-day slide that’s taken it below $79 a barrel. Oil has slumped on expectations a US-Iran agreement to reopen the Strait of Hormuz will boost supply and ease inflation pressures, prompting investors to reassess the outlook for global interest rates ahead of the Fed’s first meeting under Chair Kevin Warsh.“The backdrop has actually tilted more dovish over the past 48 hours, with oil falling sharply on Hormuz reopening expectations, providing a real disinflationary impulse,” said Billy Leung, an investment strategist at Global X Management.Markets are also watching for changes in Fed communications under Warsh. Bloomberg Economics expects the new chair to forgo submitting his own interest-rate projection to the closely watched dot plot, a break from the practice followed by Jerome Powell, Janet Yellen and Ben Bernanke.“Warsh faces a formidable challenge, striking a balance between President Trump’s desire for lower rates and signalling to the market that he is a credible and independent Fed chair,” said Bank J Safra Sarasin equity strategist Wolf von Rotberg. “Inflationary pressures in the US are unlikely to abate quickly. Solid growth and elevated core inflation suggest a hawkish bias, regardless of oil prices.”On the geopolitical front, the US and Iran are preparing to formally sign a memorandum of understanding on June 19 in Switzerland. Still, governments, energy investors and shipping companies remain cautious about how quickly traffic through the Strait of Hormuz can return to normal.Some of the main moves in markets:StocksS&P 500 futures rose 0.2% as of 5:26 a.m. New York time Nasdaq 100 futures rose 0.6% Futures on the Dow Jones Industrial Average were little changed The Stoxx Europe 600 rose 0.2% The MSCI World Index fell 0.4% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1606 The British pound was little changed at $1.3418 The Japanese yen rose 0.2% to 160.18 per dollar CryptocurrenciesBitcoin fell 1.2% to $64,997.91 Ether fell 1.2% to $1,774.77 BondsThe yield on 10-year Treasuries was little changed at 4.43% Germany’s 10-year yield declined one basis point to 2.92% Britain’s 10-year yield declined five basis points to 4.74% CommoditiesWest Texas Intermediate crude was little changed Spot gold was little changed Brent crude rose 0.2% to $79.09 a barrel This story was produced with the assistance of Bloomberg Automation.©2026 Bloomberg L.P.
