Stocks Get Hit as a New Sheriff Arrives in Town

MPC Markets Morning Call · Jun 17, 2026 · 10m

The Warsh era at the Federal Reserve began with a decisive hawkish tilt — rates were held at 3.50–3.75% but updated projections show nine of 18 officials expect at least one hike this year, with the median dot shifting from a cut to a hike. The S&P 500 fell 1.2% to 7,512.15, the Nasdaq 100 dropped 1%, and the Dow slipped 1% after briefly touching a record 52,002.94 earlier in the session. Two-year Treasury yields surged 17 basis points to 4.216%, their highest since February 2025, while the 10-year rose 7bp to 4.495%. Gold was hit hard, falling 1.9% to $4,247.93 as the stronger dollar — up…