Stocks Edge Higher Amid Fed Anticipation and Middle East Conflict Tensions

Wall Street's major indexes experienced gains on Wednesday as investors eagerly awaited the Federal Reserve's anticipated monetary policy decision. Meanwhile, the ongoing Israel-Iran conflict entered its sixth day, raising investor concerns over potential economic repercussions and geopolitical instability.

The Federal Reserve is expected to maintain current interest rates, yet investors are keenly interested in Fed Chair Jerome Powell's remarks regarding inflation control. "We're still at the beginning stages of feeling that real income shock from higher tariffs in the United States...the next couple of months of data is going to be really key," commented Simon Dangoor of Goldman Sachs Asset Management.

Following a strong equity trading month in May, indices like the S&P 500 and Nasdaq hovered near record highs until recent Middle East tensions led to increased risk aversion. Market data suggests potential rate cuts by 2025, and notable stock movements included Marvell Technology's significant advance and Circle Internet's rise following regulatory progress for stablecoins.

(With inputs from agencies.)