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Trump Threatens Iran’s Supreme Leader as Markets Reel on Edge of Fed Decision

Investor attention turns to Wednesday’s Federal Reserve decision following Tuesday’s stock decline triggered by U.S.-Iran tensions that sent oil above $75 a barrel.

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FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE), on the day of Circle Internet Group's IPO, in New York City, U.S., June 5, 2025.  REUTERS/Brendan McDermid/File Photo
Trader Robert Gasparino works on the floor of the New York Stock Exchange, Tuesday, June 10, 2025. (AP Photo/Richard Drew)
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Overview

  • President Trump used Truth Social to demand Ayatollah Ali Khamenei’s “unconditional surrender” and is weighing military options against Iran.
  • The S&P 500 slid 0.8% on Tuesday while the Nasdaq 100 and Russell 2000 also lost ground as fears of broader U.S. involvement intensified.
  • Crude oil futures jumped past $75 per barrel on concerns that renewed hostilities could disrupt Middle East supply chains.
  • The Federal Reserve is widely expected to keep rates unchanged but investors will focus on the dot plot and Chair Jerome Powell’s postmeeting comments.
  • Senators approved the GENIUS Act to create a regulatory framework for dollar-backed stablecoins, and AMD shares rose in premarket trading amid reports of an Xbox chip partnership with Microsoft.