*Ahead of the Federal Reserve's monetary policy announcement, Wall Street's major indexes opened flat on Wednesday, as the ongoing conflict between Israel and Iran entered its sixth day, leaving investors on edge.*
*Investors will closely watch remarks from Federal Reserve Chair Jerome Powell to understand how he plans to address the risk of rising prices, which remains a primary concern for the Fed. The central bank is widely expected to keep interest rates unchanged at its meeting later today.*
*Simon Dengour, Head of Fixed Income Macro Strategy at Goldman Sachs Asset Management, stated, "We are still in the early stages of feeling the impact of U.S. tariff increases on real incomes, and the uncertainty effect is likely to intensify over time."*
*"Therefore, I believe the data in the coming months will be critical for determining our next steps."*
*According to the CME Group's FedWatch tool, ahead of the Federal Reserve's policy decision, movements in the money market indicate that traders expect interest rates to be cut by approximately 45 basis points by the end of 2025, with a 55% probability of a 25-basis-point cut in September.*
*Following a strong month of equity trading in May, the benchmark S&P 500 Index (.SPX) and the tech-heavy Nasdaq (.IXIC) were approaching record highs before ongoing conflict in the Middle East prompted investors to reduce risk exposure.*
*The S&P 500 has risen by about 2.6%, while the Nasdaq remains roughly 3.3% below its historical peak.*
*Investors have remained concerned that the United States may become more directly involved in the aerial conflict between Israel and Iran.*
*A source familiar with internal discussions stated that U.S. President Donald Trump and his team are considering multiple options, including joining Israel in striking Iran's nuclear facilities.*
*As markets assess the potential for supply disruptions in the Middle East, oil prices remained steady after a 4% increase in the previous trading session.*
*Data released on initial jobless claims showed that new applications for unemployment benefits in the U.S. declined last week, but remained at levels consistent with a further weakening of labor market momentum in June.*
