Federal Reserve Keeps Rates Unchanged, Markets Close Lower

The major averages closed lower after the Federal Reserve, now under new chair Kevin Warsh, voted 12-0 to keep the target range for the federal funds rate unchanged at 3.5%-3.75%. Of note, in the committee's quarterly summary of economic projections, half of the respondents indicated they expect at least one rate hike this year, with some committee members projecting two or three. In a dramatically shorter post-meeting statement, the Fed said that inflation remains elevated, but committed that the committee will "deliver price stability."Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.1. STOCK NEWS:Jabilprovided areport for Q3La-Z-Boyreportedand announced a new $300M share repurchase programCarMaxreportedDiana Shippingraised itsGenco Shippingto $27.34 per shareThe U.S. Federal Reserve kept the target for theat 3.50%-3.75%2. WALL STREET CALLS:RothschildLyftto Buy on autonomous vehicle upsideLeidosto Neutral at BofA on increasing healthcare pressureCiti highlights AI ramp incoverage of Figmawith a BuyCarter'sto Equal Weight from Underweight at Wells FargoResMedto Equal Weight at Morgan Stanley3. AROUND THE WEB:Activist investor Toms Capital is targeting Devon Energy, FT reportsNew DiageoCEO Dave Lewis has launched a "significant" restructuring efforts, FT saysMetaCTO Andrew Bosworth acknowledged that the company handled its recent AI reorganization poorly, describing the rollout as "atrocious" in an internal memo, Wired saysPayPalis winding down its decade-old venture investing arm as part of a broader corporate restructuring, with the team shrinking from more than 10 employees in late 2025 to just two and public visibility into the unit's staff largely removed, Fortune reportsOraclesaid on Tuesday that details in a Business Insider report on the collapse of its discussions with Microsoftover a potential leasing deal were inaccurate, according to Reuters4. MOVERS:uniQuregained in New York after announcingfor AMT-130SharonAIwas higher afterBitGoincreased after announcing aLionsgate Studioswas lower in New York afterNetflixhas no plans to pursue a takeover of the companyCME Groupfell after announcingand Lynne Fitzpatrick will succeed5. EARNINGS/GUIDANCE:Deswell Industries, with EPS lower year-over-yearSmith & Wesson Brandson June 17, 2026Accentureon June 18, 2026Krogeron June 18, 2026Safe Bulkerson June 18, 2026INDEXES:The Dow fell 507.12, or 0.98%, to 51,492.55, the Nasdaq lost 354.69, or 1.34%, to 26,021.66, and the S&P 500 declined 91.25, or 1.21%, to 7,420.10.