The Prime Daily: 18 June 2026

U.S. Markets Ended lower as Fed Signals Possible Rate Hike to curb inflation

U.S. markets fell on Wednesday and Treasury yields surged after the Federal Reserve, as widely expected, left interest rates unchanged but indicated at least one quarter-point hike could be needed later this year to rein in inflation. The S&P 500 slipped 1.2% to 7,420, the Nasdaq Composite dropped 1.4% to 26,021, and the Dow fell 1% to 51,493.

Major tech bellwethers led the losses, with Microsoft, Meta Platforms, Alphabet and Amazon all closing in the red. The 2-year Treasury yield jumped more than 16 basis points to 4.216%.

After yesterday’s sharp decline on Fed-driven rate-hike concerns, U.S. stock futures are trading higher on renewed hopes that a U.S.-Iran peace deal may soon be signed and reopen the strategically important Strait of Hormuz.

At the conclusion of the Fed’s two-day meeting, the first under new Chairman Kevin Warsh, the central bank left the target rate at 3.50–3.75%. The summary of economic projections showed several officials expect higher rates in 2026 — the median year-end fed funds estimate rose to 3.8% from 3.4% in March, implying at least one hike is likely.

Oil prices trading lower today, with WTI July futures down more than 1% to $75.57 a barrel and Brent off about 0.5% to $78. 34.

Asian markets are trading mixed today with South Korea’s Kospi and Japan’s Nikkei 225 rose to fresh all-time highs while Hong Kong’s Hang Seng index trading lower by 1.2%.

Back Home, Nifty extended its winning streak for the fourth consecutive session yesterday, gaining 96 points to close at 24,085, its highest finish since 8th May. The index has recovered over 1,000 points from a swing low of 23,072 to an intraday high of 24,108.

The rupee appreciated 3 paise to 94.53, touching a six-week high intraday on expected dollar inflows after recent RBI measures; it outperformed Asian peers as crude softened on a potential U.S.-Iran deal.

Technically, Nifty is approaching resistance at the 100-day DEMA around 24,153, a level that capped rallies in April and May. A decisive close above the 100 DEMA would be a significant development, potentially confirming a bullish trend reversal on the positional timeframe, marking the first such breakout since the escalation of the West Asia conflict. If Nifty sustains above 24,153, the next upside target is seen near the 200 DEMA at 24,465.

On the downside, the 23,800 level is expected to act as immediate support, providing a cushion against any short-term profit booking.

Indian markets are set to open flat to slightly lower amid mixed Asian market cues.