US stock indices swung lower after the Federal Reserve held interest rates unchanged and signaled the possibility of rate hikes this year. The S&P 500 and Nasdaq 100 dropped 0.4%, while the Dow eased from its record high. The Summary of Economic Projections from the Fed's June meeting showed half of the FOMC projecting one rate hike or more this year, as the latest underlying inflation gauges showed an acceleration in prices and employment data remained robust despite economic shocks from the war in Iran. Notably, Chairman Warsh refrained from posting a dot in the projections to reflect his will to change the monetary framework of the Fed. Meanwhile, Iran and the US remained on track to sign their agreement by Friday. Magnificent seven stocks led the losses amid the plunge in Treasuries, with Meta, Microsoft, Alphabet, and Amazon dropping more than 2%. In turn, chip producers extended their rally with Micron, Marvell, Applied Materials and Intel adding more than 3%.