The Nasdaq inched up 25.18 points (0.1%) to 19,546.27, the S&P 500 edged down 1.85 points or less than a tenth of a percent to 5,980.87 and the Dow slipped 44.14 points (0.1%) to 42,171.66.
Wall Street closed flat after the Federal Reserve held interest rates steady at 4.25%–4.50%, maintaining focus on job growth and 2% inflation. Despite fluctuations in exports, the Fed noted solid economic activity and still projects two rate cuts by end-2025. Early market gains came amid tensions between Israel and Iran, with Ayatollah Khamenei warning the U.S. of irreparable damage. However, Trump claimed Iran reached out for peace talks and even proposed visiting the White House.
The Labor department released a report showing first time claims for U.S. unemployment benefits edged modestly lower in the week ended June 14th. It also said initial jobless claims dipped to 245,000, a decrease of 5,000 from the previous week's revised level of 250,000. The Labor Department said the less volatile four-week moving average crept up to 245,500, an increase of 4,750 from the previous week's revised average of 240,750. The Commerce Department also released a report showing a steep drop by new residential construction in the U.S. in the month of May.
Banking stocks turned in some of the market's best performances on the day, with the KBW Bank Index climbing by 1.9%. Telecom and brokerage stocks moved upwards while energy stocks moved downwards along with the price of crude oil.
Asia-Pacific stocks turned in a mixed performance. Japan's Nikkei 225 Index advanced by 0.9%, while Hong Kong's Hang Seng Index slumped by 1.1%. The major European markets also ended the day mixed while the U.K.'s FTSE 100 Index inched up by 0.1%, the French CAC 40 Index fell by 0.4% and the German DAX Index decreased by 0.5%.
In the bond market, treasuries closed little changed following the rebound seen in the previous session. Subsequently, the yield on the benchmark ten-tear note which moves opposite of its price, crept up by less than a basis point to 4.39%.