4:15pm: Stocks retreat
US stocks finished Wednesday’s session lower after the Fed held rates steady, but pointed to a weaker economic outlook.
The tech-heavy Nasdaq led the losses, down 1.3% at 26,021 points. The S&P 500 was down 1.2% at 7,420 points and the Dow Jones fell 1% to 51,492 points.
3:45pm: Proactive news headlines
- First Phosphate Corp. (CSE:PHOS, OTCQX:FRSPF, FRA:KD0, OTC:FPHOY) formalized international investment and offtake agreements under the Critical Minerals Resilience and Production Alliance during the G7 Summit in Évian, supporting its Quebec phosphate development plans.
- Graphene Manufacturing Group Ltd (TSX-V:GMG, OTCQX:GMGMF) completed its first bulk shipment of THERMAL-XR coating to North American distributor Nu-Calgon, marking progress toward US commercial rollout in the HVAC-R market.
- Purepoint Uranium Group Inc (TSX-V:PTU, OTCQX:PTUUF, FRA:P5X0) began drilling at its Dorado project in Saskatchewan’s Athabasca Basin as part of a fully funded 2026 exploration program.
- Nine Mile Metals Ltd. (CSE:NINE, OTCQB:VMSXF, FRA:KQ9) reported two zones of copper mineralization, including a new deeper discovery, from drilling at its Wedge Mine property in a program guided by 3D geological modelling.
- 1911 Gold Corp (TSX-V:AUMB, OTCQB:AUMBF, FRA:2KY) increased the size of its bought-deal financing to about $31 million as investor demand strengthened while it advances its True North gold project in Manitoba.
- American Resources Corp (NASDAQ:AREC) said its subsidiary Electrified Materials Corporation has joined NAATBatt International to support its expansion into battery recycling and critical mineral recovery operations.
- Record Resources Inc (TSX-V:REC) is refocusing on its West African oil and gas assets after selling mineral rights in Ontario, allowing it to concentrate on its Ngulu block operations in Gabon.
- Varon Corp (OTCID:OZSC)’s US subsidiary secured retail placement for its Ballislife drink in nearly 100 Chicago-area stores as part of an early urban rollout to test consumer demand.
2:50pm: Market movers
- Elemental Royalty Corporation (TSX-V:ELE) rose nearly 4% after being selected for inclusion in multiple major indexes, including the S&P/TSX Global Gold Index.
- Applied Materials Inc (NASDAQ:AMAT, XETRA:AP2) gained about 8% after unveiling SENZ, an integrated visual system for next-generation augmented reality smart glasses.
- Bed Bath & Beyond Inc. (NASDAQ:BBBY) agreed to acquire Fathom Holdings in a $53.38 million stock transaction as it expands into the broader homeownership services market.
- Snap Inc (NYSE:SNAP) fell about 4% after introducing its new $2,195 Specs augmented reality glasses, with investors questioning pricing and demand.
- AST SpaceMobile Inc (NASDAQ:ASTS) gained about 4% after successfully launching three BlueBird satellites to expand its space-based cellular broadband network.
- Graphene Manufacturing Group Ltd (TSX-V:GMG, OTCQX:GMGMF) completed its first bulk shipment of THERMAL-XR coating to North American distributor Nu-Calgon, advancing its commercial rollout in the HVAC-R market.
- Purepoint Uranium Group Inc (TSX-V:PTU, OTCQX:PTUUF, FRA:P5X0) began drilling at its Dorado uranium project in Saskatchewan’s Athabasca Basin as part of its fully funded 2026 exploration program.
- CarMax Inc (NYSE:KMX) declined more than 6% despite stronger-than-expected earnings, as investors focused on margin pressure and credit-related concerns.
- Nine Mile Metals Ltd. (CSE:NINE, OTCQB:VMSXF, FRA:KQ9) reported two zones of copper mineralization, including a newly identified deeper zone, from drilling at its Wedge Mine property.
2:20pm: Fed keeps rates unchanged
The Federal Reserve left interest rates unchanged, in line with expectations, but its updated projections pointed to a slightly weaker economic outlook and a more hawkish policy path for next year.
The Fed lowered its median 2026 GDP growth forecast to 2.2% from 2.4%, signaling a more cautious view of the economy. At the same time, the latest "dot plot" showed that 9 of 18 Federal Open Market Committee participants now expect a rate hike in 2026.
Notably, Fed Chair Kevin Warsh does not appear to have submitted a policy-rate projection in the latest dot plot, leaving markets focused on the views of other policymakers as they assess the direction of monetary policy under his leadership.
1:30pm: Big moment for metals?
The Federal Reserve's first policy decision under new Chair Kevin Warsh is shaping up to be a key moment for markets, according to Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.
“A new chief means markets face a degree of uncertainty for US monetary policy, and as a result the rally from last week continues to cool," Beauchamp wrote.
"Warsh’s enthusiasm for lower rates would normally be thought of as firmly positive, but his keenness on shrinking the Fed’s balance sheet casts a longer shadow.
"The US-Iran deal has given the new boy a big boost ahead of his first appearance, as a more convincing tale of falling energy prices can now be told, but even with this expectation there is more than an air of anticipation this afternoon.”
12:15pm: Markets eye Warsh era
Nigel Green, CEO of deVere Group, says investors are largely looking past the Federal Reserve's expected decision to leave interest rates unchanged and are instead focused on what the first meeting under new Fed Chair Kevin Warsh signals about the future direction of monetary policy.
“A hold is already priced in. Investors have moved beyond the question of what happens today. What they want to know is what Kevin Warsh’s Federal Reserve is going to look like.”
Green said markets will closely scrutinize the Fed's statement, economic projections and Warsh's comments for clues about whether the central bank's policy approach is shifting under new leadership. He noted that Warsh faces a challenging backdrop, with inflation still running well above the Fed's 2% target while the labour market remains resilient and economic growth has not weakened enough to justify aggressive rate cuts.
According to Green, investors are particularly interested in whether Warsh will change the Fed's communication strategy. Given Warsh's previous criticism of extensive forward guidance and skepticism toward the Fed's "dot plot" interest-rate projections, Green said any decision by the new chair not to submit his own rate forecast this week could be viewed as a significant signal that the Fed intends to place greater emphasis on incoming economic data rather than long-term projections.
11:00am: 'Tricky time' for new Fed chair
Investors are focused on the Federal Reserve’s policy decision due later today.
While markets are overwhelmingly expecting the Fed to leave interest rates unchanged at 3.5% to 3.75%, the meeting carries added significance as it marks the first policy announcement under new Fed Chair Kevin Warsh. Even with no rate move anticipated, traders will be watching closely for any clues about the central bank’s outlook and priorities under its new leadership.
"This is a tricky time for a new Fed chair to set policy," said Kathleen Brooks, research director at XTB.
"Warsh’s messaging and how he frames his views on the economy and the future of monetary policy will be closely scrutinized. However, there is an added dimension to Warsh’s press conference, he has stated his preference for less Fed communication, so how he deals with the media this week is crucial for market sentiment. It will also give us a clearer idea of how the Fed could operate under Warsh."
10am: SpaceX and tech giants drag Nasdaq down
Wall Street opened in a more positive mood, though tech stocks quickly lost confidence.
The Dow Jones has pressed on to a new all-time high, up 202 points or 0.4% to 52,202.
However, after starting higher, the S&P 500 flattened off and the Nasdaq fell into the red, swinging from a 0.5% gain to a fall of 0.1%.
SpaceX took off initially, rising another 5% to over $212, but now looks to be heading into the red.
Alphabet, Microsoft, Amazon and Meta were all down over 1% too.
As for the Dow, Caterpillar, Goldman Sachs and JPMorgan are leading the way.
8.10am: Cautious start
US stocks look set for a cautious start on Wednesday as investors await the first Federal Reserve interest rate decision under new chair Kevin Warsh, with the focus less on the immediate policy outcome and more on the route forward.
Futures point to a flat open for the Dow Jones and S&P 500 but a 0.5% rebound for the Nasdaq after the tech-heavy exchange saw the sharpest losses in a mixed Wall Street session yesterday.
The Nasdaq slid almost 2%, and the S&P 500 lost 0.9% as semiconductors and other tech shares came under pressure, while the Dow rose 0.6% to finish just shy of 52,000 and hit an intraday high on the way.
Attention now turns to the Fed's quarterly meeting, which will be accompanied by updated economic forecasts and the closely watched 'dot plot' of policymakers' interest-rate expectations.
There is speculation that this could be the last, with Warsh suggesting in recent comments that he would eventually favour a less transparent approach to communications.
Markets are widely expecting rates to remain unchanged, with traders instead looking for clues on whether policymakers still see scope for cuts later this year.
According to CME FedWatch, futures markets currently imply around a 60% chance of at least one rate cut before year-end.
Among individual stocks, SpaceX continued to defy gravity, rising 4.8% on Tuesday to lift its market value above Amazon's and edging another 1.3% higher in pre-market trade this morning.
Investors are still grappling with the stock's valuation as index inclusion and limited free float continue to drive demand.
For those looking for a more upbeat take on tech, there was always Wedbush analyst Dan Ives, who argued that fears SpaceX's blockbuster IPO would "suck oxygen out of the tech and AI trade" have proved overblown.
He described the market debut as a "Goldilocks outcome" for the sector and said investors should now view concerns about an IPO-driven sell-off in chip stocks as a "rear-view mirror concern".