US stocks drift ahead of the Fed's announcement on interest rates

NEW YORK (AP) — The U.S. stock market is drifting Wednesday as Wall Street waits to hear from the Federal Reserve in the afternoon about where it sees interest rates going.

The S&P 500 slipped 0.1%, coming off a mixed day where falling tech stocks weighed on the index. The Dow Jones Industrial Average was up 111 points, or 0.2%, as of 11:15 a.m. Eastern time, and the Nasdaq composite was 0.2% lower.

Several stocks involved in the artificial-intelligence business headed back up their roller-coaster ride, supporting the market. Jabil rose 4.7% after reporting stronger results for the latest quarter than analysts expected, as CEO Mike Dastoor said that “AI infrastructure demand remains extremely strong.”

Broadcom climbed 6%, and Applied Materials rose 7.9%.

Such AI stocks have veered up and down in recent weeks and yanked the rest of the market behind them on worries that their prices shot too high because of the mania around AI.

SpaceX, meanwhile, erased an early gain and dropped 5.9%. It's potentially on track for its first loss since its ballyhooed debut on the U.S. stock market last week.

Outside of tech, La-Z-Boy jumped 15.1% after reporting stronger profit and revenue for the latest quarter than analysts expected. It benefited from revenue made at newly opened stores, though Chief Financial Officer Taylor Luebke said the company continues to have “a measured view” of the broad sales environment.

A report released Wednesday said retailers across the country saw their revenue grow at a faster pace in May than economists expected, offering hope that solid spending by consumers can support the economy. But high inflation has also made U.S. shoppers feel more discouraged about their finances.

The day’s main event will come in the afternoon, when the Fed will announce its latest decision on what to do with interest rates. The widespread expectation is that it will leave its main interest rate alone, as it has throughout this year.

Investors are more interested in the projections that Fed officials will give about where they see interest rates heading in upcoming years and what Kevin Warsh will say after his first meeting as the Fed’s chair.

Traders had been building bets that the Fed may have to raise its federal funds rate this year in order to keep a lid on inflation, which has accelerated because of expensive oil caused by the war with Iran. But oil prices have pulled back to $80 per barrel after the United States and Iran reached a tentative agreement on their war.

Iran is set to immediately take steps to reopen the Strait of Hormuz once the deal is signed, and that would allow oil tankers to exit the Persian Gulf once again and deliver crude to customers worldwide. The hope is that will take pressure off inflation.

As a result, traders are split on where the Fed could take interest rates through the end of the year. Some are betting on a cut to rates, which is something that President Donald Trump has angrily been calling for. But the most popular bet is for no move on rates, while some traders still see a hike as the most likely outcome, according to data from CME Group.

Oil prices ticked higher Wednesday following their sharp slides on optimism about the tentative U.S.-Iran deal to get the global flow of oil going again. The price for a barrel of Brent crude oil rose 1.8% to $80.40. It’s still above its roughly $70 price from before the war, but it’s well below its $100-plus price from a few weeks ago.

In the bond market, Treasury yields held relatively steady. The yield on the 10-year Treasury remained at 4.43%, where it was late Tuesday.

High yields in bond markets worldwide caused by worries about inflation have been threatening to slow economies and undercut prices for all kinds of investments.

In stock markets abroad, indexes were mixed across Europe and Asia.

London’s FTSE 100 was virtually unchanged after a report showed U.K. inflation remained at 2.8% in May.

South Korea’s Kospi jumped 1.6%, and Hong Kong’s Hang Seng fell 0.7% for two of the world’s bigger moves.

AP Business Writers Chan Ho-him, Matt Ott and Elaine Kurtenbach contributed to this report.

Specialist Michael Pistillo, left, and trader Sean Spain work on the floor of the New York Stock Exchange, Tuesday, June 16, 2026. (AP Photo/Richard Drew)

Options trader Joseph D'Arrigo works on the floor of the New York Stock Exchange, Tuesday, June 16, 2026. (AP Photo/Richard Drew)

Employees of a securities company celebrate as Japan's benchmark Nikkei 225 topped 70,000 for the first time during trading hours in Tokyo Tuesday, June 16, 2026. A sign, left, reads " Congratulations. Nikkei index reached 70,000 yen." (Shinji Kouchi/Kyodo News via AP)

Employees of a securities company celebrate as Japan's benchmark Nikkei 225 topped 70,000 for the first time during trading hours in Tokyo Tuesday, June 16, 2026. A sign, left, reads "Congratulations. Nikkei index reached 70,000 yen." (Shinji Kouchi/Kyodo News via AP)

An electronic board, left, shows Nikkei index at a securities company in Tokyo Tuesday, June 16, 2026. (Shinji Kouchi/Kyodo News via AP)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, June 17, 2026. (AP Photo/Ahn Young-joon)

A currency trader stretches near a screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, June 17, 2026. (AP Photo/Ahn Young-joon)

A business jet with six people on board crashed on a highway in Laredo, Texas, and caught fire Tuesday night, authorities said, killing one person and causing chaos as people left their vehicles to frantically try to smash the cockpit window and free those inside.

Drivers who came upon the burning plane, which was nearly sheared in half and tipped on its side, captured dramatic rescue scenes on video or rushed toward the aircraft on foot to help. Two people came running with a sledgehammer and shovel, which they used to strike the cockpit glass and try propping open the plane's door.

The plane crashed on the Loop 20 highway near the Texas-Mexico border shortly after 10 p.m., said Jose Baeza, an investigator with the Laredo Police Department. He said one person on the plane died in the crash. A person in a car struck by the plane was taken to a hospital in stable condition.

Dashcam footage posted on social media showed the aircraft careening down the highway, taking out a light post before coming to a stop. It came to a rest not far from the Laredo International Airport.

“It looked like part of a movie. I was in shock,” said Zayra Garza, an esthetician who was driving her co-workers home when she came upon the crash.

No injuries on the ground were immediately reported, though five officers were taken to the hospital for smoke inhalation.

The plane, a Cessna Citation Latitude twin jet, departed Tuesday evening from San José del Cabo in Mexico and was bound for Austin, Texas, the Federal Aviation Administration said in a statement.

It was not immediately clear what caused the crash. The FAA and the National Transportation Safety Board are investigating.

Laredo International Airport Director Gilberto Sanchez said Wednesday that a pilot on the jet radioed the airport reporting mechanical problems and asking to land. He said the pilot “mentioned low fuel and a power outage.”

“They had mechanical issues and they lost communication with the tower," Sanchez said, "and that’s when the accident happened.”

Video posted to social media showed the plane on its side, smashed into a highway barrier. The tail was ripped from the fuselage and laying mostly intact on a lower-level road beneath where the rescue was taking place.

Garza began shooting video as she approached the scene and then stopped her vehicle across from the crippled jet, which was on fire.

She saw someone inside the plane trying to break the cockpit window to escape. Soon, people got out of their vehicles to try to smash the window from the outside as the fire on the fuselage continues to burn.

Garza’s husband jumped out of their vehicle to help and Garza then saw the door of the plane open. She said three people who looked to be teenagers rushed out, followed by someone who appeared to be a pilot. Another member of the crew tried to pull out a person who seemed to be unconscious.

As smoke billowed from the plane, a firefighter used a small ladder to climb into the aircraft to rescue the remaining passenger, while others shot water out of a hose at the wreckage. Rescuers can be heard calling for a rope as others use rods to hold up the plane door.

Several times, officers helping prop open the door dart away from the plane and double over in coughing fits because of the intense smoke.

“What was worrying me was the fire,” she said. “I was concerned that it could have just exploded at any time.”

This was the third significant aviation accident in as many days. A B-52 crashed Monday during a test flight at Edwards Air Force Base in California and killed all eight people aboard, while on Sunday, 12 people were killed when a plane on a skydiving outing in Missouri crashed.

NetJets said in a statement that the crash involved one of its aircraft and it is working with authorities. NetJets is owned by Warren Buffett’s Berkshire Hathaway and allows people to buy part ownership in private jets.

People attempt to pull passengers out of a plane after it crashed on a highway Tuesday, June 16, 2026, in Laredo, Texas. (Zayra Garza via AP)

People attempt to pull passengers out of a plane after it crashed on a highway Tuesday, June 16, 2026, in Laredo, Texas. (Zayra Garza via AP)

A passenger, top, jumps out of a plane after it crashed on a highway as other people help Tuesday, June 16, 2026, in Laredo, Texas. (Zayra Garza via AP)