U.S. stocks traded mixed on Wednesday as investors took a more cautious approach ahead of the Federal Reserve's first interest rate decision under Chairman Kevin Warsh. While the Dow Jones Industrial Average extended its record-setting run, the S&P 500 and Nasdaq slipped as traders balanced optimism around a potential U.S.-Iran agreement against concerns that higher inflation could keep interest rates elevated.

The Dow climbed roughly 0.4%, supported by strength in industrial and defensive names, while the S&P 500 edged slightly lower and the tech-heavy Nasdaq lost ground as investors rotated out of some of the market's biggest winners. With the Fed widely expected to leave rates unchanged, attention has shifted toward Warsh's economic outlook and any signals about whether additional rate hikes could be on the table later this year.

Market Movers:

  • uniQure (QURE) +67%: Shares skyrocketed after the gene therapy company announced plans to seek U.S. approval for its Huntington's disease treatment AMT-130 following encouraging FDA feedback. Regulators indicated that existing Phase 2/3 data could support an accelerated approval filing, significantly improving investor confidence in the therapy's commercial prospects.
  • La-Z-Boy (LZB) +24%: The furniture maker surged after reporting stronger-than-expected quarterly earnings and issuing first-quarter revenue guidance above Wall Street estimates. Expanding margins, improved supply chain efficiency, a new $300 million share repurchase authorization, and confidence in continued market share gains added to the bullish sentiment.
  • Jabil (JBL) +12%: Shares climbed after the electronics manufacturer delivered an earnings beat and raised its full-year revenue, earnings, and free cash flow forecasts. Management pointed to accelerating AI infrastructure demand and improving conditions across automotive and connected device markets as key growth drivers.
  • Eos Energy Enterprises (EOSE) +11%: The energy storage company rallied after signing a long-term supply agreement with CAPAC Energy covering Germany, Austria, and Switzerland through 2031. The partnership includes an initial 750 MWh commitment with expansion potential to 2 GWh, strengthening Eos' international growth strategy.
  • SpaceX (SPCX) +4%: Shares remained volatile after their blockbuster IPO as investors continued to pour into the stock despite valuation concerns from some market observers. Heavy options activity and strong retail demand helped support the shares following their rapid climb into the ranks of the world's most valuable companies.
  • Lionsgate Studios (LION) -7%: Shares retreated after reports indicated Netflix is not pursuing an acquisition of the studio, reversing takeover speculation that had fueled recent gains. Investors quickly removed much of the merger premium that had built into the stock.
  • CarMax (KMX) -6%: The used-car retailer slipped despite posting better-than-expected earnings and revenue as investors focused on weaker comparable sales and narrowing gross margins. Concerns that tariff-driven demand could fade overshadowed management's optimistic long-term outlook.
  • CME Group (CME) -5%: Shares declined after the derivatives exchange announced a planned CEO succession that will take effect in 2027. While the transition appears orderly, investors reacted cautiously to the leadership change.

Fed Meeting Takes Focus

Markets remain focused on the Federal Reserve, which is expected to leave interest rates unchanged following its two-day policy meeting. Instead of the rate decision itself, investors will be closely watching Chairman Kevin Warsh's first post-meeting press conference and the updated economic projections for clues about the path of monetary policy. Recent inflation data has complicated the outlook, with elevated energy costs tied to Middle East tensions keeping price pressures above the Fed's long-term target. A resilient labor market has also reduced expectations for any near-term rate cuts.

Oil Outlook Improves

Energy markets received encouraging news after the International Energy Agency projected that global oil supplies could shift into a sizeable surplus in 2027 if production recovers across the Gulf region and demand continues to moderate. While uncertainty remains surrounding the preliminary U.S.-Iran agreement, expectations for increased production have eased some concerns about long-term supply shortages. Brent crude continued to trade lower as investors weighed the possibility of reopened shipping routes and replenished inventories.

Fresh Retail Data

Fresh retail sales data suggested the U.S. consumer remains remarkably resilient despite higher inflation and elevated gasoline prices. Retail sales increased 0.9% in May, comfortably exceeding expectations, with gas station sales posting particularly strong gains as fuel costs remained elevated. The report indicates that household spending has yet to show meaningful signs of slowing, reinforcing the view that the economy continues to expand even as inflation pressures persist.

Looking Ahead

Investors now turn their full attention to the Federal Reserve's policy statement, updated economic forecasts, and Chairman Warsh's comments for guidance on the future direction of interest rates. Markets will also continue monitoring developments surrounding the U.S.-Iran agreement and energy prices, while earnings season and AI-related momentum remain key drivers for individual stocks in the days ahead.