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Market reaction after Fed decision

The three major US stock indexes rose in a volatile trading session on June 18, after the US Federal Reserve (Fed) decided to keep interest rates unchanged.

Tạp chí Doanh NghiệpTạp chí Doanh Nghiệp19/06/2025

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Traders at the New York Stock Exchange, USA. Photo: THX/TTXVN

The Fed also signaled that borrowing costs are likely to continue falling this year, but it revised down its expected pace of future rate cuts.

According to the Fed statement, policymakers still expect to cut interest rates by half a percentage point this year, then ease the pace of cuts slightly to just one quarter-point cut each in 2026 and 2027. Policymakers also estimate that President Donald Trump's tariffs will boost inflation.

The indexes rose immediately after the Fed's announcement but quickly returned to their pre-news levels. At around 1:14 a.m. on June 19, Vietnam time, the Dow Jones Industrial Average rose 124.01 points, or 0.29 percent, to 42,339.81. The S&P 500 gained 17.02 points, or 0.28 percent, to 5,999.74, and the Nasdaq Composite added 71.45 points, or 0.37 percent, to 19,592.54.

Peter Cardillo, chief market economist at Spartan Capital Securities, said the Fed saw slowing economic growth and decided to keep interest rates unchanged. This did not surprise the market.

Investors are also keeping a close eye on developments in the Middle East, with some concerned about the possibility of more direct US military involvement in the Israeli-Iranian airstrikes. Iran’s Supreme Leader Ayatollah Ali Khamenei has rejected Trump’s demand for unconditional surrender. President Trump has said his patience is running out, though he has not hinted at his next move.

Earlier in the day, data showed initial jobless claims in the United States fell last week, but remained at levels that suggested the labor market could continue to lose momentum in June 2025.

Photo caption
Gold bars on display at the Bundesbank in Frankfurt am Main, Germany. Photo: AFP/VNA

The world gold market also increased slightly after the Fed decided to keep interest rates unchanged, while platinum prices made a strong impression when they skyrocketed to their highest level in more than 4 years.

Specifically, spot gold prices increased by 0.1% to $3,392.08/ounce. US gold futures prices also recorded a slight increase of 0.2% to $3,412.5/ounce.

Gold’s appeal is often bolstered by geopolitical tensions and a low-interest-rate environment, but the precious metal’s rally has stalled after hitting a session high of $3,451.04 an ounce on June 16, approaching its all-time high set in April 2025.

In a recent report, Goldman Sachs bank stated that investor interest is shifting to other precious metals as they look for opportunities to "catch up" on growth potential.

In other precious metals, spot silver fell 0.8% to $36.95 an ounce after earlier hitting its highest since February 2012. Platinum rose 5.1% to $1,327.03 an ounce, its highest since February 2021.


Source: https://doanhnghiepvn.vn/kinh-te/phan-ung-cua-thi-truong-sau-quyet-dinh-cua-fed/20250619075348969


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