{"id":63345,"date":"2026-06-17T21:08:15","date_gmt":"2026-06-18T01:08:15","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/markets-rally-on-u-s-iran-peace-deal-as-fed-signals-hawkish-shift-under-new-chair\/63345\/"},"modified":"2026-06-17T21:08:15","modified_gmt":"2026-06-18T01:08:15","slug":"markets-rally-on-u-s-iran-peace-deal-as-fed-signals-hawkish-shift-under-new-chair","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/markets-rally-on-u-s-iran-peace-deal-as-fed-signals-hawkish-shift-under-new-chair\/63345\/","title":{"rendered":"Markets Rally on U.S.-Iran Peace Deal as Fed Signals Hawkish Shift Under New Chair"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>U.S. equity futures surged<\/strong> (<a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> +0.8%, Nasdaq +1.4%) following the signing of an <strong>interim U.S.-Iran peace deal<\/strong>, which aims to reopen the <strong>Strait of Hormuz<\/strong> and alleviate global energy supply risks.<\/li>\n<li><strong>The Federal Reserve held interest rates steady at 3.50%\u20133.75%<\/strong> in the first meeting chaired by <strong>Kevin Warsh<\/strong>, but officials signaled a likely rate hike by October to combat persistent inflation.<\/li>\n<li><strong>SK Hynix (<a href=\"\/stock\/000660\">000660<\/a>)<\/strong> announced the shipment of <strong>12-layer HBM4E samples<\/strong> to major customers, reinforcing its leadership in the AI memory market with chips boasting <strong>16Gbps speeds<\/strong> and <strong>20% better power efficiency<\/strong>.<\/li>\n<li><strong>HSBC Australia (<a href=\"\/stock\/HSBA\">HSBA<\/a>)<\/strong> faces a proposed <strong>A$35 million ($24.6 million) penalty<\/strong> after admitting to serious failures in protecting customers from sophisticated phone and impersonation scams.<\/li>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">Oil prices<\/a> slumped over 1%<\/strong> toward $75 per barrel as the reopening of critical Middle Eastern shipping lanes is expected to trigger a significant supply surplus by 2027.<\/li>\n<\/ul>\n<h2>Global Markets React to Middle East Peace Accord<\/h2>\n<p>Global markets experienced a sharp shift in sentiment as <strong>President Donald Trump<\/strong> signed a memorandum of understanding with <strong>Iran<\/strong>, marking a major step toward ending months of conflict. The agreement focuses on reopening the <strong>Strait of Hormuz<\/strong>, a chokepoint responsible for 20% of the world&#39;s seaborne oil. <em>Analysts suggest this move significantly reduces the geopolitical risk premium that has buoyed energy prices throughout the year.<\/em><\/p>\n<p><strong>Brent crude<\/strong> fell below <strong>$79 a barrel<\/strong>, while <strong>West Texas Intermediate (WTI)<\/strong> dropped to <strong>$75.88<\/strong>. The <strong>International Energy Agency (IEA)<\/strong> warned that the resumption of flows could lead to a &quot;significant supply overhang&quot; next year. Conversely, <strong>Spot <a href=\"https:\/\/stockmarketwatch.com\/metal\/gold\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">Gold<\/a><\/strong> rose to <strong>$4,297.65\/oz<\/strong>, as investors weighed the impact of lower energy costs against a potentially more aggressive Federal Reserve.<\/p>\n<h2>Fed Adopts Hawkish Tone in Warsh Debut<\/h2>\n<p>In his first meeting as Federal Reserve Chair, <strong>Kevin Warsh<\/strong> oversaw a unanimous decision to keep the benchmark rate at <strong>3.50%\u20133.75%<\/strong>. However, the central bank&#39;s updated projections revealed a hawkish pivot, with a majority of officials now expecting a rate hike by the end of 2026. <em>The Fed&#39;s statement was notably streamlined, reflecting Warsh&#39;s intent to reform central bank communications.<\/em><\/p>\n<p>The <strong>Hong Kong Monetary Authority (HKMA)<\/strong> mirrored the Fed&#39;s decision, keeping its base rate at <strong>4%<\/strong>. Despite the current pause, the shift in U.S. policy expectations has led traders to fully price in a hike by October. This outlook weighed on <strong>Asian currencies<\/strong> and <strong>Japanese Government Bonds (JGBs)<\/strong>, with the 5-year JGB yield edging up to <strong>1.865%<\/strong>.<\/p>\n<h2>Tech and Corporate Developments<\/h2>\n<p><strong>SK Hynix (<a href=\"\/stock\/000660\">000660<\/a>)<\/strong> has accelerated the AI hardware race by shipping samples of its <strong>7th-generation HBM4E<\/strong> memory. The new 12-layer chips utilize <strong>Advanced MR-MUF technology<\/strong>, which improves heat resistance by <strong>17%<\/strong>. These components are critical for next-generation AI accelerators, such as <strong>Nvidia&#39;s (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> upcoming &quot;Vera Rubin Ultra&quot; platform.<\/p>\n<p>In the banking sector, <strong>HSBC Australia (<a href=\"\/stock\/HSBA\">HSBA<\/a>)<\/strong> and the <strong>Australian Securities and Investments Commission (ASIC)<\/strong> have jointly applied for a <strong>A$35 million<\/strong> court-ordered penalty. The bank admitted to &quot;serious failures&quot; in its scam protection systems, which resulted in customers losing millions to impersonation fraud. <strong>HSBC<\/strong> has already commenced a <strong>A$21.5 million<\/strong> remediation program to compensate affected victims.<\/p>\n<h2>Regional Economic Shifts<\/h2>\n<p>The <strong>European Union<\/strong> is reportedly weighing targeted measures against <strong>Chinese exports<\/strong> as part of a new, unified trade strategy. This move comes as the bloc&#39;s trade deficit with China reaches record levels, prompting calls for a &quot;rebalancing&quot; of the relationship. In Southeast Asia, <strong>Indonesia&#39;s Finance Ministry<\/strong> secured a <strong>$17 billion<\/strong> funding commitment from the <strong>Asian Infrastructure Investment Bank (AIIB)<\/strong> for infrastructure and climate resilience projects scheduled through 2029.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways U.S. equity futures surged (S&amp;P 500 +0.8%, Nasdaq +1.4%) following the signing of an interim U.S.-Iran peace deal, 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