US stock indices ended Wednesday's session with mixed results. The United States launched a new round of strikes against Iran, marking at least the fourth such attack since the two nations signed a memorandum of understanding in mid-June. So far, the scale and intensity of recent retaliatory actions by both sides have not reached the levels seen at the onset of the conflict.

Minutes from the Federal Reserve's June meeting revealed that officials' concerns over high inflation are intensifying. While policymakers worried that price increases were broadening and might necessitate interest rate hikes, they followed the lead of Fed Chair Wash in issuing a more streamlined policy statement. During the meeting held on June 16-17, a minority of participants saw grounds for raising rates immediately.

US Markets

At the close, the Dow Jones Industrial Average fell 576.76 points, or 1.09%, to 52,348.39. The Nasdaq Composite gained 51.96 points, or 0.20%, to 25,870.65. The S&P 500 index declined 21.14 points, or 0.28%, to 7,482.71. Micron Technology Inc (MU.US) rose 1%, NVIDIA Corp (NVDA.US) advanced 3.6%, and SanDisk Corp. (SNDK.US) jumped 6.7%. The Nasdaq Golden Dragon China Index closed up 2.05%, with Alibaba Group Holding Ltd (BABA.US) surging 11%.

European Markets

Germany's DAX 30 index dropped 585.80 points, or 2.30%, to 24,903.46. The UK's FTSE 100 fell 186.79 points, or 1.75%, to 10,479.09. France's CAC 40 declined 183.58 points, or 2.18%, to 8,252.66. The Euro Stoxx 50 index lost 116.00 points, or 1.84%, to 6,203.86. Spain's IBEX 35 index decreased 541.57 points, or 2.76%, to 19,098.63. Italy's FTSE MIB index was down 642.94 points, or 1.23%, at 51,812.50.

Asian Markets

Japan's Nikkei 225 index fell 2.11%. South Korea's KOSPI index dropped 5.35%.

Currency Markets

The US Dollar Index, which measures the greenback against a basket of six major currencies, dipped 0.03% to settle at 100.990. By the end of New York trading, 1 euro bought $1.1426, up from $1.1419 the previous session. 1 British pound traded at $1.3400, up from $1.3363. 1 US dollar fetched 162.48 Japanese yen, up from 161.94 yen. 1 dollar was at 0.8076 Swiss francs, unchanged from the prior session. 1 dollar was worth 1.4169 Canadian dollars, down from 1.4195. 1 dollar traded at 9.6903 Swedish krona, up from 9.6784.

Cryptocurrencies

Bitcoin fell over 1.9% to $62,332.83. Ethereum declined more than 1.8% to $1,742.71.

Commodities

The price of light, sweet crude for August delivery on the New York Mercantile Exchange rose $3.08 to settle at $73.52 per barrel, a gain of 4.37%. September Brent crude on the ICE Futures Europe exchange increased $3.86 to close at $78.02 per barrel, up 5.2%.

Precious Metals

Spot gold fell to $4,077.49. Spot silver was at $58.28.

Key Macroeconomic Developments

Federal Reserve Meeting Minutes: Officials Show Clear Divisions on Rate Path, Both Hikes and Cuts Possible. Minutes from the Fed's June policy meeting indicated clear divisions among officials regarding the future direction of interest rates. Some policymakers believed inflation could ease, creating conditions for rate cuts, while others worried about persistent price pressures, suggesting future rate hikes might be necessary. At the meeting held on June 16-17, the Fed unanimously decided to keep the benchmark rate unchanged at 3.5% to 3.75%. However, the discussion revealed differing views on where rates might be by year-end. Some officials expected rates to be near or slightly below current levels, while others thought they might need to be higher. The Fed stated that future policy would be adjusted based on economic data, particularly inflation and employment.

Fed Watcher: Core Fed Disagreement Lies in Inflation Outlook, Not Policy Direction. Journalist Nick Timiraos noted that the June Fed minutes show disagreements stem primarily from differing assessments of the future economic path, not a fundamental conflict over hiking or cutting strategies. Two plausible scenarios have emerged within the Fed: if inflation remains high, nearly all officials agree on maintaining higher rates or further tightening; but if inflation quickly falls back to the 2% target, nearly all officials also agree that current rates could be maintained or even cut in the future. He noted that the phrase "quickly falls back to 2%" is crucial, preserving the Fed's flexibility. The key question for officials now is whether inflation will persist or re-enter a downward trend. Timiraos concluded that the Fed's next move remains data-dependent, especially on inflation. Markets had previously bet on cuts, but the latest minutes show significant uncertainty remains in the policy outlook.

Analyst: US-Iran Enter Phase of 'Talks with Pressure', Future May See Repeated Tensions. According to reports, Iran analyst Mortezaei stated that after the cessation of direct clashes, the US and Iran are entering a phase of "diplomatic negotiations alongside military pressure." She said the current understanding is only a temporary halt to conflict and does not resolve fundamental differences. Both sides are testing each other's limits through actions to gain a stronger position in subsequent talks. Mortezaei indicated Iran remains willing to negotiate but also hopes to increase its leverage by maintaining military pressure. She believes Iran is currently employing a strategy of "using pressure to advance diplomacy." She pointed out that Iran still lacks trust in the US, with some officials viewing the current agreement as a "temporary ceasefire," not a genuine step toward peace. She warned that the US-Iran situation could see repeated periods of tension and escalation in the coming months, rather than moving toward long-term peace or all-out war.

Notable Corporate News

Meta Platforms Inc (META.US) to Build C$13 Billion Data Center in Alberta, Canada. Tech giant Meta announced on Wednesday it will build a large-scale data center in central Alberta, its first in Canada, aimed at rapidly expanding computing capacity to support the global artificial intelligence boom. Meta stated this 1-gigawatt data center will be located in Sturgeon County, with a total investment of C$13 billion (approximately US$9.17 billion). Meta has ramped up its focus on AI and has committed hundreds of billions of dollars to building large AI data centers in the United States. The Alberta announcement marks the company's 33rd global data center location.