US stocks edge higher as tech recovers; Markets await Fed decision under Kevin Warsh

US stocks edged higher on Wednesday as technology shares attempted a rebound ahead of the Federal Reserve’s interest rate decision, the first policy announcement under new Chairman Kevin Warsh. Sentiment remained cautious as investors balanced geopolitical developments and expectations around unchanged rates.

The tech-heavy Nasdaq Composite rose 0.4%, while the S&P 500 added about 0.2%. The Dow Jones Industrial Average gained 0.3%, extending its recent strength after the blue-chip index touched a record high in the previous session amid uncertainty over US-Iran peace developments.

Oil prices edged higher after geopolitical uncertainty resurfaced, with West Texas Intermediate crude up around 1% at nearly $77 per barrel and Brent crude advancing to about $80 per barrel.

The move followed remarks from US President Donald Trump indicating that a final agreement with Iran has not been secured, keeping energy markets volatile after earlier optimism around a potential ceasefire deal.

Investor sentiment was also supported by stronger-than-expected US retail sales data, which rose 0.9% in May, well above estimates and signalling resilient consumer demand despite higher prices. Excluding autos, sales still increased 0.8%, underscoring broad-based spending strength across categories.

Attention now turns to the Federal Reserve, which is expected to keep interest rates unchanged in the 3.5%–3.75% range. This will be the first policy decision under new Chair Kevin Warsh, followed by his press conference at 2:30 p.m. ET, where investors will look for guidance on inflation trends, growth outlook and the policy path ahead.

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