MARKET WRAPS
STOCKS: Stocks finished lower after the Federal Reserve held interest rates steady under its new chairman, Kevin Warsh.
TREASURYS: Treasury yields rose after Fed officials hinted more strongly that their next move could be to raise interest rates.
FOREX: The U.S. dollar strengthened as investors saw an increased likelihood of higher interest rates this year.
COMMODITIES: Oil futures settled modestly higher in a volatile session as President Trump's warning that the U.S. could resume attacks if Iran doesn't stick to a peace deal was countered by the possibility of a quick reopening of the Strait of Hormuz.
HEADLINES
Fed Holds Rates Steady, But More Officials See Higher Rates as Next Move
Federal Reserve officials signaled Wednesday that their next move may be to raise interest rates, not cut them, a striking reversal at Kevin Warsh's first meeting as chairman and a sign of how sharply the inflation outlook has turned.
The Fed held its benchmark rate steady, in a range of 3.5% to 3.75%, in a unanimous vote. But officials' quarterly economic projections told the story of the shift: Nine of 19 officials penciled in at least one rate increase by year's end, up from none in March. Just one foresaw a cut, down from 12.
Trump Defends Iran Deal, Says He Wants to Avoid 'Economic Catastrophe'
ÉVIAN-LES-BAINS, France-President Trump on Wednesday defended his agreement to end the Iran war, saying he wanted to avoid an "economic catastrophe" that could have resulted if the conflict the U.S. launched had continued.
Trump said he was influenced by the stock market's rise as he worked toward a resolution of the conflict. He said he didn't want to be compared with former President Herbert Hoover, who was president during the 1929 market crash that led to the Great Depression.
"He was always the one I didn't want to be," Trump told reporters at the Hôtel Royal where he and other world leaders gathered for the Group of Seven meeting. "I didn't want to see an economic catastrophe."
U.S. Retailers' Sales Growth Accelerated Last Month
Sales growth rose more than expected for U.S. retailers in May, as consumers continued to make purchases even as gasoline prices remained elevated.
Retailers' sales grew by 0.9% last month to $763.7 billion, versus the 0.4% growth recorded in April, the Commerce Department said Wednesday. The May numbers were higher than analysts' expectations.
Retail sales numbers are recorded in nominal terms and account for the total number of dollars spent. As consumers spend more on higher gasoline prices, total sales could rise even if the volume of goods remains the same. May data from the Labor Department showed gasoline prices rising at a faster pace than in April.
U.S. Pending-Home Sales Rises More Than Expected in May
The number of homes going under contract in the U.S. rose more than expected in May, according to a monthly index.
Here are the main takeaways from the National Association of Realtors' report released Wednesday.
-The pending-home sales index, a leading indicator of house sales based on contract signings, rose 3.8% on month to 76.8. Economists polled by The Wall Street Journal had forecast a 1% increase.
CarMax's Turnaround Is Taking Shape, Still Has Long Way to Go
CarMax's turnaround is starting to take shape, but the used-car retailer still has a lot of work to do to reach its full potential.
Chief Executive Keith Barr, who stepped into the top role in March, said on a call with analysts Wednesday that the company's core operations aren't fast and efficient enough, and that its costs remain too high.
At the same time, he said CarMax's digital experience is too complex and unconnected to the company's in-person experience, which itself has problems. The good news, though, is that all of these pain points are addressable.
Trump Says Anthropic Negotiations Continue as AI Leaders Huddle at G-7
ÉVIAN-LES-BAINS, France-President Trump said negotiations with Anthropic over restoring access to the company's latest artificial-intelligence models were "going fine," comments that came at a Group of Seven summit where some world leaders were concerned about losing access to leading AI tools.
After a lunch with world leaders and AI executives including Anthropic's Dario Amodei, Trump and Commerce Secretary Howard Lutnick told reporters that talks between the two sides are continuing nearly a week after they started. Trump said the broader AI meeting went well and touted how much investment AI is driving in the U.S.
"We had a great meeting with AI. We had all the top people here and it was a great meeting," Trump said. "And, as you know, we're building tremendous numbers of plants, but AI we're building the biggest, the biggest in the world."
CME Group's Terry Duffy to Step Down as CEO, Ceding Role to Finance Chief
CME Group's longtime leader, Terry Duffy, plans to step down as chief executive of the world's most valuable exchange operator early next year.
The Chicago company on Wednesday said Duffy, who has been chairman since 2002 and CEO since 2016, will hand the reins to Lynne Fitzpatrick, currently president and chief financial officer, on March 1.
Duffy, who got his start at CME Group as a runner in the lean-hog pit in 1980, will become executive chairman on that date, when Fitzpatrick will join the board, the company said.
State Farm's AI Plan for Sales Agents Sparks Uproar. 'A Real Slap in the Face.'
State Farm rolled out the red carpet for its army of sales agents at a Las Vegas convention last month. Thousands who flew into Sin City on the insurer's dime were treated to a Pink concert, a Jimmy Fallon-led singalong and selfies with the "Jake from State Farm" actor.
Then Jon Farney, State Farm's chief executive, took to the Allegiant Stadium stage and dropped a bombshell.
Farney, a 33-year State Farm veteran, told his sales force he was ripping up their existing contracts. Any agent who wants to stay past 2027 will have to sign up to a new compensation deal and sales targets.
TALKING POINT The IPO Onslaught Is Forcing Bankers to Pick Teams
SpaceX had practically every banker on Wall Street at its beck and call for its blockbuster IPO last week. That won't be the case for OpenAI and Anthropic.
The two artificial-intelligence giants are preparing for what could be dueling initial public offerings this fall, and the same two banks, Goldman Sachs and Morgan Stanley, are expected to play major roles in both. But not the same individual bankers.
Instead, both banks are forming distinct teams to ensure no information is shared between the rivals, people familiar with the matter said. Banks are typically very careful about avoiding the appearance of conflicts for all deals, from IPOs to mergers and acquisitions.
It is rare for competitors to go public at the same time, and in recent memory no two competing offerings have used the same lead underwriters. Clients expect discretion from advisers as they pore over financial details and craft strategies for pitching the company to investors.
When ride-share companies Lyft and Uber both went public in 2019, the work was divided between banks: JPMorgan Chase, Credit Suisse and Jefferies led Lyft's offering, while Goldman, Morgan Stanley and Bank of America led Uber's.
The unusual nature of the current situation reflects the stronghold Goldman and Morgan Stanley now have when it comes to technology-industry IPOs. OpenAI and Anthropic are also eyeing jumbo-sized offerings, which require an army of banks to pull off (SpaceX's $86 billion offering used 23).
The full bank lineups for potential offerings from OpenAI and Anthropic aren't finalized.
--By Corrie Driebusch, The Wall Street Journal
Expected Major Events for Thursday
06:00/UK: May UK monthly unemployment figures
08:30/GER: ifo Economic Forecast
09:00/ITA: Apr Balance of Payments
11:00/UK: UK interest rate decision
12:30/US: 06/13 Unemployment Insurance Weekly Claims Report - Initial Claims
12:30/CAN: Apr Employment Insurance
12:30/US: Jun Philadelphia Fed Business Outlook Survey
12:30/CAN: May Industrial product and raw materials price indexes
12:30/US: U.S. Weekly Export Sales
14:00/US: May Leading Indicators
14:30/US: 06/12 EIA Weekly Natural Gas Storage Report
20:00/US: Apr Treasury International Capital Data
20:30/US: Foreign Central Bank Holdings
20:30/US: Federal Discount Window Borrowings
23:01/UK: Jun UK Consumer Confidence Survey
23:30/JPN: May CPI (Nation), CPI ex-food (Nation)
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Expected Earnings for Thursday
Accenture PLC $(ACN)$ is expected to report $3.70 for 3Q.
America's Car-Mart Inc $(CRMT)$ is expected to report $-1.12 for 4Q.
Coffee Holding Co Inc (JVA) is expected to report $0.06 for 2Q.
Empire Co Ltd - Class A (EMLAF,EMP.A.T) is expected to report for 4Q.
InnSuites Hospitality Trust (IHT) is expected to report for 1Q.
Kroger Co $(KR)$ is expected to report $1.61 for 1Q.
PMET Resources Inc (PMET.T) is expected to report for 4Q.
Replimune Group Inc $(REPL)$ is expected to report $-0.62 for 4Q.
Silver Bull Resources Inc (SVB.T) is expected to report for 2Q.
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This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
June 17, 2026 16:34 ET (20:34 GMT)
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