Market Report, 2026-06-17

On Wednesday, stocks and bonds experienced a pullback as the new Federal Reserve Chair, Kevin Warsh, first showcased his future Federal Reserve policy stance. Unlike the past two Federal Reserve Chairs, who advocated for increased transparency, Kevin Warsh is suggesting a more hands-off approach by reducing the use of forward guidance for future policy rate expectations. He has also long argued that the Federal Reserve’s balance sheet should be reduced and has already created a task force to review and evaluate the Fed’s balance sheet operations, policy frameworks, and liquidity management.

One particular statement caused the market to significantly reprice the expected interest-rate path: “The Federal Reserve is committed to price stability.” Against a backdrop of inflation remaining above target for years and recently trending higher, the federal funds futures market has priced in a rate hike as early as September, with a second rate hike expected in the near future as well.

All major asset classes posted losses today. The Dow Jones Industrial Average lost 507 points to 51,493. The NASDAQ fell 1.34% to 26,022. The S&P 500 ended the day 1.21% lower at 7,420. No sector finished the day in positive territory. In addition, gold declined by more than 2% and fell below the 4,300 mark as the Federal Reserve’s credibility was strengthened.

The yield curve moved higher and flattened. The 5-year Treasury yield rose 11 basis points to 4.26%, while the 10-year Treasury yield increased 6 basis points to 4.49%.

A quick look at today’s data showed that American consumers remained resilient despite higher gas prices. On the one hand, retail sales rose more than expected; on the other hand, pending home sales increased 3.8%, marking the largest gain since September 2024.

We expect the market to continue digesting the Fed’s signals tomorrow, and Adams Wealth Advisors will continue to provide updates.