Stocks surged higher shortly after the cash open as President Trump said that Iran had reached out to negotiate, but that spike higher faded for all but Small Caps. The Nasdaq went red right before The Fed, then the fact that The Fed did not shift its median rate cut expectation for 2025 (despite growing fears of stagflation) prompted gains in stocks.
But then Powell said "we expect a meaningful amount of inflation in coming months."
*POWELL: WE EXPECT A MEANINGFUL AMOUNT OF INFL. IN COMING MONTHS https://t.co/pbD9Cc3Wml
— zerohedge (@zerohedge) June 18, 2025
