Dow opens 50 points higher as investors await Fed decision, chip stocks rise

• Fed decision expected at 2 p.m. ET with rates likely unchanged; markets assign 43% probability of a quarter-point hike in December
• Chip stocks rallied with ASML up ~6% and Intel up 2.3% after securing certification for advanced chip production
• WTI crude rose nearly 1% to ~$76/barrel and Brent to ~$79/barrel amid uncertainty over US-Iran deal and Strait of Hormuz oil shipments

Market Summary: Fed Decision Awaited as Chip Stocks Rebound

Market Open (June 17, 2026):

U.S. stocks opened modestly higher with the Dow gaining 50 points, S&P 500 up 0.11%, and Nasdaq rising 0.28%. The Dow continued its record-breaking streak following consecutive all-time highs.

Federal Reserve Focus:

Markets await the Fed's 2 p.m. ET policy announcement—the first under new Chair Kevin Warsh. Interest rates are widely expected to remain unchanged at 3.50%-3.75%. However, traders are pricing in a 43% probability of a quarter-point hike in December. Warsh's press conference commentary on inflation and future policy will be closely watched. May retail sales data is also due.

Chip Sector Recovery:

Semiconductor stocks rebounded after recent weakness. Intel rose 2.3% following regulatory progress on chip manufacturing. ASML surged approximately 6%, while the Invesco PHLX Semiconductor ETF gained 0.67%. Improved risk appetite drove the sector's recovery.

Oil Market Dynamics:

Crude prices climbed nearly 1% after President Trump cast doubt on a finalized U.S.-Iran agreement, threatening renewed military action. WTI futures reached $76/barrel and Brent approached $79/barrel. Earlier optimism about reduced Strait of Hormuz tensions had pushed oil to March lows, but geopolitical uncertainty has rekindled risk premiums.

Other Notable Moves:

SpaceX shares rose 1.96% post-IPO, extending strong performance. Global markets showed strength with Japan's Nikkei 225 hitting a record high (+0.72%), South Korea's Kospi gaining 1.58%, and Europe's Stoxx 600 advancing 0.3%.

Outlook:

Market focus remains on balancing easing inflation, economic growth prospects, and future monetary policy direction under Warsh's leadership.