The major U.S. index futures are currently pointing to roughly flat open on Wednesday, with stocks likely to show a lack of direction following the mixed performance seen in the previous session.
Traders may be reluctant to make significant moves ahead of the Federal Reserve's monetary policy announcement later this afternoon.
While the Fed is widely expected to leave interest rates unchanged, the accompanying statement and new Chair Kevin Warsh's post-meeting comments could impact the outlook for rates.
Lingering uncertainty about the preliminary U.S.-Iran deal may also keep some traders on the sidelines amid a lack of details about the proposed agreement.
Crude oil prices are regaining some ground after President Donald Trump noted the deal is "not final" and warned the U.S. would "go right back to dropping bombs" on Iran if he doesn't like the terms.
Following the strong upward move seen over the past few sessions, the major U.S. stock indexes turned in a mixed performance during trading on Tuesday. While the Nasdaq and the S&P 500 gave back ground, the narrower Dow climbed to a new record closing high.
The tech-heavy Nasdaq showed a significant pullback, slumping 307.60 points or 1.2 percent to 26,376.34. The S&P 500 also fell 42.94 points or 0.6 percent to 7,511.35, but the Dow rose 328.64 points or 0.6 percent to 51,999.67.
JPMorgan Chase (JPM) helped lead the Dow higher, surging by 3.7 percent, while Visa (V), Home Depot (HD) and 3M (MMM) also posted strong gains.
The pullback by the Nasdaq and the S&P 500 may have reflected profit taking following recent strength in the markets.
Optimism about an end to the monthslong U.S.-Iran contributed to the recent recovery, but some traders looked to cash in on the gains as they wait for the peace deal to be finalized.
Substantial weakness among semiconductor stocks also weighed on the Nasdaq, with the Philadelphia Semiconductor Index plunging by 5.7 percent after ending the previous session at a record closing high.
Networking stocks also showed a substantial move to the downside, dragging the NYSE Arca Networking Index down by 2.5 percent.
Outside of the tech sector, an extended nosedive by the price of crude oil weighed on oil service stocks, resulting in a 2.4 percent slump by the Philadelphia Oil Service Index.
Telecom stocks also saw notable weakness on the day, while gold, banking and housing stocks showed strong moves to the upside.
The mixed performance on Wall Street also came as traders looked ahead to the Federal Reserve's monetary policy announcement on Wednesday.
On the inflation front, a report released by the Labor Department showed import prices in the U.S. shot up by much more than expected in the month of May.
The Labor Department said import prices jumped by 1.9 percent in May after leaping by an upwardly revised 2.0 percent in April.
Economists had expected import prices to increase by 1.0 percent compared to the 1.9 percent jump originally reported for the previous month.
The report also said the annual rate of import price growth accelerated to 6.7 percent in May, reflecting the largest year-over-year advance since August 2022.
Commodity, Currency Markets
Crude oil futures are climbing $0.58 to $76.63 a barrel after plummeting $4.70 to $76.05 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $4,343.80, down $10.60 compared to the previous session's close of $4,354.40 On Tuesday, gold inched up $2.80.
On the currency front, the U.S. dollar is trading at 160.26 yen compared to the 160.45 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.1597 compared to yesterday's $1.1607.
Asia
Asian stocks ended mixed on Wednesday ahead of the U.S. Federal Reserve's interest rate decision under new Chair Kevin Warsh later in the day and Friday's signing of the U.S.-Iran interim peace agreement.
The signing of the Memorandum of Understanding in Switzerland is likely to pave the way for a 60-day negotiating period to address key issues that have plagued U.S.-Iran diplomacy for decades.
The framework may rapidly unlock Iranian oil exports, channel funds into its economy and begin a phased rollback of sanctions in exchange for nuclear curbs.
Meanwhile, the Fed is seen holding rates steady today despite concerns over persistent inflation. With investors focused on macroeconomic conditions and policy direction, all eyes will be on Warsh's first post-meeting press conference.
The dollar eased in Asian trading and gold was little changed at $4,330 an ounce, while Brent crude futures fell toward $78 a barrel on optimism for an end to the U.S.-Iran war and a possible reopening of the Strait of Hormuz, crucial for oil and gas transit worldwide.
China's Shanghai Composite Index edged up by 0.4 percent to close at 4,108.08 after a choppy session.
Hong Kong's Hang Seng Index fell 0.7 percent to 24,312.16. HSBC shares rallied 1.4 percent after the lender announced it would use Google Cloud to roll out artificial intelligence across its global operations.
Japanese markets advanced as data showed Japan's exports grew at their fastest pace since November 2022 in May, helped in part by strong demand for cars and high-tech products.
Additionally, core machinery orders jumped 8.7 percent in April, beating forecasts and pointing to steady capital spending.
The Nikkei 225 Index advanced 0.7 percent to 69,902.25, closing at a record high for a third straight session. The broader Topix Index closed 0.6 percent higher at 4,013.23.
Seoul stocks ended higher for a fifth consecutive session as falling oil prices tempered inflation concerns. The Kospi Index rallied 1.6 percent to 8,864.24, driven by gains in technology stocks.
While market bellwether Samsung Electronics rose about 1 percent, SK Hynix soared 5.8 percent to set a new record.
Australian markets closed at a two-month high, with banks and miners leading the surge. The benchmark S&P/ASX 200 Index rose 0.5 percent to 8,966.30, while the broader All Ordinaries Index climbed 0.6 percent to 9,185.90.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index dropped 0.3 percent to 13,392.98, erasing gains from the previous session ahead of the release of first quarter GDP data.
Europe
European stocks are subdued on Wednesday as caution grips the markets ahead of the U.S. Federal Reserve's interest rate decision later in the day and the signing of a peace deal between Washington and Teheran on Friday in Switzerland.
In economic news, official data showed that U.K. consumer price inflation registered an annual increase of 2.8 percent in May, the same rate as seen in April. Prices were expected to climb 3.0 percent.
Factory gate inflation slowed marginally to 4.0 percent in May from 4.1 percent a month ago, while input prices grew 8.7 percent, the highest since February 2023 after rising 7.9 percent in April.
Separately, European Central Bank figures showed euro zone negotiated wage growth slowing to 2.6 percent by 2026, easing policymakers' concerns about inflation-driven pay demands.
While the French CAC 40 Index is just above the unchanged line, the U.K.'s FTSE 100 Index is down by 0.1 percent and the German DAX Index is down by 0.2 percent.
Auto shares fell, with Germany's BMW tumbling 6.5 percent after cutting its 2026 outlook. Volkswagen declined 2.2 percent, Mercedes Benz lost 3.3 percent and Renault dropped 1 percent.
Defense technology company Thales rose about 1 percent after it entered into a strategic partnership with Renault Group to develop and industrialize the large-scale production of the TOUTATIS loitering munition.
Nokia added 1.3 percent after announcing it is significantly expanding its advanced test and packaging operations in Allentown, Pennsylvania.
U.S. Economic News
Retail sales in the U.S. increased by much more than expected in the month of May, according to a report released by the Commerce Department on Wednesday.
The Commerce Department said retail sales grew by 0.9 percent in May after rising by a downwardly revised 0.4 percent in April.
Economists had expected retail sales to climb by 0.5 percent, matching the increase originally reported for the previous month.
Excluding a jump in sales by motor vehicle and parts dealers, retail sales still advanced by 0.8 percent in May after climbing by 0.7 percent in April. Ex-auto sales were expected to rise by 0.5 percent.
At 10 am ET, the National Association of Realtors is scheduled to release its report on pending home sales in the month of May. Pending home sales are expected to increase by 0.9 percent in May after jumping by 1.4 percent in April.
The Commerce Department is also due to release its report on business inventories in the month of April at 10 am ET. Business inventories are expected to rise by 0.5 percent in April after climbing by 0.9 percent in March.
At 10:30 am ET, the Energy Information Administration is scheduled to release its report on crude oil inventories in the week ended June 12th. Crude oil inventories are expected to decrease by 4.6 million barrels.
The Federal Reserve is scheduled to announce its monetary policy decision at 2 pm ET, followed by Fed Chair Kevin Warsh's post-meeting press conference at 2:30 pm ET.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.