CNBC Daily Open: Fed signals just one rate cut
This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here .
One rate cut
The Federal Reserve signaled it expects to cut rates only once this year, down from the three quarter-point reductions projected in March. The Fed acknowledged there was "modest" progress toward its 2% inflation target. The new guidance came as it held interest rates steady, as was widely expected. Fed Chair Jerome Powell said the central bank does not yet have the confidence to start lowering interest rates, even after May's consumer price index came in cooler than expected on Wednesday. "We see today's report as progress and as, you know, building confidence," Powell said. "But we don't see ourselves as having the confidence that would warrant beginning to loosen policy at this time."
More records
The S&P 500 closed above 5,400 for the first time as the Federal Reserve signaled one rate cut later this year and May's inflation data came in softer than expected. The Nasdaq Composite also hit an all-time high, while the Dow Jones Industrial Average slipped 0.1%. The yield on the 10-year Treasury dropped 7 basis points to 4.33% as the Fed said it was making "modest" progress on inflation. U.S. oil prices rose as investors bet supplies would tighten later this year.
Top spot
After briefly trailing Nvidia in market capitalization, Apple has reclaimed its position as the world's most valuable company, overtaking Microsoft. This resurgence comes after Apple unveiled its aggressive push into artificial intelligence, which sparked investor enthusiasm. As of 10:45 a.m. ET, Apple's market cap