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Besides this, Kevin Warsh is headed for a full Senate vote after winning approval from the Senate Banking Committee. The committee backed the nomination along party lines, advancing Donald Trump’s pick to replace Jerome Powell as head of the Federal Reserve.

US crude exports surged to a record last week as the Iran war sends overseas buyers hunting for replacements to Middle Eastern oil.

Even as the US and Iran hold on to a fragile ceasefire, oil buyers across the world are still grappling with the worst disruption to global energy supplies in history. American exports have been critical to help fill the gap, with President Donald Trump pushing for more US production as part of his energy dominance agenda.

That has sent US crude exports above 6 million barrels a day, eclipsing a previous high of nearly 5.3 million set in late 2023, according to data published Wednesday from the US Energy Information Administration.

Universal Music Group NV reported that first-quarter subscription revenue grew more than expected, highlighting the strength of the company’s artist roster after billionaire investor Bill Ackman pitched an offer valuing the world’s largest record label at $65 billion.

The label also said it would monetise half of its equity stake in Spotify Technology SA and increased its share buyback authorisation to €1 billion. Universal plans to start another €500 million share buyback program once it completes the buyback announced in March.

The label, home to some of the world’s best-selling stars, including Taylor Swift, Kendrick Lamar, Billie Eilish and the Beatles, said subscription revenue grew 12.5% on a constant-currency basis, to €1.3 billion ($1.5 billion). Analysts had expected 10.1% growth.

The Bank of Canada held interest rates steady, saying adjustments to borrowing costs would be likely be small if the economy and inflation evolve as expected.

Officials led by Governor Tiff Macklem kept the policy rate at 2.25% on Wednesday, matching expectations of markets and economists in a Bloomberg survey.

“A policy rate close to current settings looks appropriate to support adjustment in the economy and return inflation to target,” Macklem said in an opening statement.

Oil prices jumped about 7% on Wednesday afternoon at 12:40 p.m. ET, as markets reacted to an Axios report suggesting that President Donald Trump plans to maintain the U.S. naval blockade against Iran until a nuclear deal is reached. The spike pushed West Texas Intermediate crude above $106 per barrel, while the international benchmark also climbed above $119.

The sharp rise in energy prices has added fresh uncertainty to the inflation outlook just as the Federal Reserve prepares for its policy decision. While central bankers often treat short-lived oil shocks as transitory, the escalating tensions between Iran and the U.S. raise concerns about prolonged disruption risks.

Analysts warn that sustained conflict could threaten shipping through the Strait of Hormuz, a critical global oil transit route. Any prolonged blockage or instability in the region could keep energy prices elevated and complicate the Fed’s efforts to assess the true trajectory of inflation.

For Americans already struggling with higher gas prices and broader affordability pressures, the central bank’s decision to keep interest rates unchanged offers little immediate relief. Borrowing costs across most categories are expected to remain elevated in the near term.

Short-term lending rates, such as credit cards, are closely linked to the Federal Reserve’s benchmark federal funds rate, meaning they are likely to stay high. Auto loan rates are influenced by a mix of factors, including the Fed’s policy stance, and are also expected to remain elevated.

Longer-term borrowing costs, including home loans, are more sensitive to inflation trends and broader economic conditions. However, ongoing geopolitical uncertainty is also keeping mortgage rates higher than expected, limiting any meaningful easing in housing affordability.

As attention builds around what Jerome Powell may signal at his potentially final meeting regarding his future as a Federal Reserve governor, prediction markets suggest he is likely to remain in the role for a short period after his term as Fed Chair ends.

On the betting platform Kalshi, traders assign a 30% probability that Powell steps down as a member of the Federal Reserve Board of Governors by June. However, confidence rises for later timelines, with 66% odds for an exit by August and 81% by the end of the year.

If Powell remains through August, he would attend at least two more policy meetings—June and late July. His term as a Federal Reserve governor officially extends until 2028.

Meanwhile, on prediction market platform Polymarket, sentiment points more strongly toward an earlier exit, with an 87% chance that Powell steps down between May 15 and May 22.

Shares of Amazon edged up 0.8%, while Microsoft and Meta Platforms slipped 1.6% and 0.3%, respectively, ahead of earnings. All four mega-cap stocks are slated to announce their earnings after US stock market close today. Wall Street analysts broadly praised Starbucks after its second-quarter earnings beat, with several firms highlighting signs of a turnaround.Wells Fargo analyst Lauren Silberman called the results a strong signal that “Starbies is back,” pointing to improving sentiment and long-term growth potential.Deutsche Bank analyst Zachary Fadem said the beat could help restore investor confidence, signaling an inflection point for both revenue and profit growth.Meanwhile, Goldman Sachs analyst Christine Cho maintained a more cautious stance, noting progress in the turnaround but calling for more clarity on cost savings and margins.Shares of Starbucks were last up about 9% following the results.

Investors who have been feasting on stocks will know by this evening whether the party will continue.

Wednesday marks a make-or-break day for US equities as a Federal Reserve interest-rate decision will be quickly followed by mega-cap companies Microsoft Corp., Meta Platforms Inc, Google-parent Alphabet Inc. and Amazon.com Inc. all reporting quarterly results after the closing bell.

Those four names alone account for roughly one-fifth of the S&P 500’s market capitalisation and have provided a third of the index’s gains since its recent low on March 30.

And it all comes at a time when a variety of measures of equity-market positioning show investors are loaded up on stocks.

Gold extended a decline, as investor focus remained on the prospect of talks between the US and Iran, with the indefinite closure of the Strait of Hormuz continuing to heighten inflation risks.

Bullion dipped as much as 1.9% to trade just above $4,500 an ounce, after falling 2.4% over the previous two sessions. The US signalled it would stick with a naval blockade of Iranian ports, as it tries to choke off Tehran’s oil exports and force it back to the negotiating table.

Mediators in Pakistan expect Tehran will submit a revised proposal in the next few days, CNN reported.Rising oil prices are a key factor likely to keep the Federal Reserve from resuming interest rate cuts.Crude has surged following disruptions in the Strait of Hormuz amid the U.S.-Iran conflict, raising concerns that lower rates could further fuel inflation.Markets widely expect the Federal Reserve to hold the federal funds rate steady at what could be one of the final meetings led by Jerome Powell.Attention is also on whether Jerome Powell will remain on the board after stepping down as chair, following criticism from Donald Trump over the pace of rate cuts.Sachin Neema, co-founder of Garud Investments, expects the Federal Reserve to keep interest rates steady through mid-2026.He said the central bank may deliver just one reluctant 25-basis-point rate cut later in the year, driven more by political pressures than economic conditions.Neema also flagged rising uncertainty and risk aversion ahead of a leadership transition at the Federal Reserve.

The Senate Banking Committee voted on party lines Wednesday to approve Kevin Warsh as the next chair of the Federal Reserve to replace Jerome Powell, a long-time target of President Trump’s insults for not cutting borrowing costs as far as the president wanted.

The vote was 13-11, with all Republican senators voting in favor and Democrats opposed.

Warsh is a former top Fed official but has also been a sharp critic of the institution and Powell’s leadership. He has called the inflation spike to 9.1% in 2022 the central bank’s biggest policy mistake in four decades. A vote on his nomination probably won’t take place until next month, but he could be confirmed by the time Powell’s term as chair ends May 15.

The Senate Banking vote is the first of two key events surrounding the future of the Fed’s leadership. Also Wednesday, Powell is presiding over what will probably be his last meeting of the Fed’s interest rate-setting committee. At a news conference Wednesday afternoon, Powell may indicate whether he will remain as a member of the central bank’s board of governors after his term as chair ends.

APThe S&P 500 opened Wednesday’s session little changed, trading near the flatline alongside the Dow Jones Industrial Average.The Nasdaq Composite slipped about 0.2% in early trading.

Investors expect the Federal Reserve to keep interest rates unchanged at its Wednesday meeting, as policymakers remain cautious amid persistent inflation and a still-resilient labor market.

The decision, which could be among the final meetings led by Chair Jerome Powell, comes with inflation still above the central bank’s 2% target and limited urgency to begin rate cuts.

Economist Roger Ferguson said the Fed is likely to stay on hold, noting that while the labor market appears stable, inflation — hovering near 3% — still requires more progress before easing policy.

Seagate Technology — Shares surged nearly 18% after strong guidance, with fourth-quarter revenue and earnings outlook topping expectations. The company also beat estimates on both revenue and profit in the third quarter.

Booking Holdings — The stock fell about 4.5% after trimming its full-year earnings growth forecast, citing lingering impacts from the Middle East conflict, despite a first-quarter beat.

Expedia Group — Shares slipped around 3% in sympathy with Booking’s decline.

Mondelez International — The Oreo maker gained 1.5% after reporting better-than-expected first-quarter earnings and revenue.Investor focus is shifting to Big Tech earnings, with four “Magnificent Seven” companies set to report after the bell: Alphabet, Amazon, Meta Platforms, and Microsoft.Analysts at JPMorgan said the results could act as a positive catalyst for markets, though current positioning suggests a rising likelihood of a near-term top and potential consolidation before the broader bull run resumes.The Fed’s decision — and more importantly, its forward guidance — has direct implications for global liquidity and capital flows.For markets like India, the outcome could influence foreign institutional investor (FII) activity, currency movement, and bond yields. A hawkish tilt typically dampens risk appetite and pressures emerging market equities, while a dovish signal tends to support inflows and sentiment.With the announcement coming after Indian market hours, the real impact will likely play out in Thursday’s session. But make no mistake — even a “no-change” decision tonight is unlikely to be a quiet one.This meeting also carries leadership significance. It is increasingly being seen as Powell’s final policy decision as Fed Chair, with his term expected to conclude around mid-May.Reports suggest that the US Senate could move to confirm Kevin Warsh as his successor around the same time, adding another layer of uncertainty to the policy outlook.While the rate decision itself may be a non-event, Powell’s commentary is expected to do the heavy lifting.Investors will closely track the tone of the policy statement and Powell’s remarks for clues on whether the Fed is inching towards a rate cut cycle later this year — or digging in for a prolonged higher-for-longer stance.Some experts believe the central bank could lean hawkish.“Expect the Fed to hold rates steady through mid-2026, with only a reluctant 25 basis point cut later in the year, driven more by political fatigue than economic conviction,” said Sachin Neema, Co-founder of Garud Investments.Nachiketa Sawrikar of Artha Bharat Global Multiplier Fund added that the upcoming decision could mark a shift in tone. “While inflation could justify a more aggressive stance, the Fed has stayed measured so far due to early-stage geopolitical risks. We expect a clearer hawkish signal, indicating rate cuts are unlikely in 2026 under current conditions,” he said.NewsLive TVMarketPopular CategoriesCalculatorsTrending NowLet's Connect with CNBCTV 18Network 18 Group :©TV18 Broadcast Limited. All rights reserved.