KEY:- The S&P 500 fell less than 0.1% on June 18, 2025, following the Federal Reserve's revision of its economic outlook and maintenance of interest rate stability. After a stablecoin regulation bill was approved by the Senate, Coinbase's stock surged. The possible disruption of the payment system, on the other hand, put pressure on payment stocks; shares of Visa and MasterCard fell.
Following the Federal Reserve’s announcement that it would maintain current interest rates, major U.S. stock indexes ended the day Wednesday largely unchanged.
The Fed said it is not in a rush to lower rates, even though it has raised its inflation forecasts and lowered its expectations for economic growth. Nonetheless, in line with previous projections, the “dot plot” still shows two rate cuts anticipated in 2025.
During Fed Chair Jerome Powell’s press conference, markets fell after trading higher for the majority of the day. The Nasdaq managed a modest 0.1% gain, the Dow Jones Industrial Average fell 0.1%, and the S&P 500 ended marginally lower by less than 0.1%. (Investopedia offers comprehensive market insights.) Due to the Juneteenth holiday, the stock and bond markets will be closed on Thursday.
Coinbase Soars After Approval of the Stablecoin Bill:-
Among S&P 500 stocks, Coinbase Global (COIN), the biggest cryptocurrency exchange based in the United States, had the best performance, rising 16%. The rally came after the GENIUS Act, which creates a regulatory framework for stablecoin issuers, was passed by the Senate. In an effort to stabilize the cryptocurrency market, the bill requires issuers to back coins with assets like US dollars or Treasury securities.
The parent company of the UFC and WWE, TKO Group Holdings (TKO), saw a 4.8% increase. Numerous firms’ analysts expressed optimism about TKO’s prospects, especially with regard to its renewals of media rights. While Bernstein emphasized the increasing value of UFC’s broadcasting rights and the company’s efforts to transform live events into more festival-like experiences—possibly opening the door to further growth—Citi increased its price target.
Enphase Energy’s (ENPH) stock increased 4.2%, reversing earlier losses brought on by the Senate’s reconciliation bill’s proposed reductions to clean-energy tax credits. With the launch of its new home battery system, the solar microinverter company is gaining traction in European markets.
Credit card companies suffered as a result of the Senate’s crypto-friendly legislation. Traditional card networks may be circumvented by merchants using the stablecoin framework. Visa (V) fell 4.9%, while Mastercard (MA) fell 5.4%, making it the S&P 500’s worst performer.
Payment processors were impacted in addition to the main card issuers. Concerns about disruptions in digital payment infrastructure caused Corpay (CPAY) to fall 4% and Paycom Software (PAYC), a payroll technology provider, to drop 3.7%.
Leading animal health product company Zoetis (ZTS) fell 4.1% after Stifel downgraded it from “buy” to “hold.” The company’s dermatology and parasiticide divisions saw slower growth, according to analysts, and growing competition may make it more difficult for the company to grow its revenue in the future.