S&P 500 Index ($ SPX) (SPY) fell -13%, Dow Jones Industries Index ($ Dowi) (Dia) -179%fell, and NASDAQ 100 Index ($ IUXX) ($ IUXX) (QQQ) -1.29%fell. June E -Mini S&P Futures (ESM25) fell -06%, and June e -Mini Nasdaq Futures (NQM25) -fell -1.20%.
The stock index fell on Friday after Israel on Thursday night, as a series of military attacks on Iranian nuclear and ballistic missile programs began and some top Iranian military commanders and nuclear scientists were also killed. Israel hit some 100 targets in Iran. The situation deteriorated on Friday when Iran responded by launching dozens of ballistic missiles in Israel, really ensuring that Israel would continue its attacks on Iran’s missile and nuclear amenities in the coming days.
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Israeli Prime Minister Netanyahu said the attack “will continue for several days to remove this danger.” President Trump said Iran needs to make a nuclear deal with the US “before it is too late,” and the next round of attacks “will be even more cruel”. The US-Irani nuclear dialogue is scheduled for Sunday, but it is not clear whether they will move forward or not.
The Trump administration said the US was “not involved” in military attacks. However, the US can be directly drawn into the Israeli-Iranian conflict if Iran tries to block the straight of Hormuz or Iran or attacks American assets in the region, either straight or behind the screen. If Iran reacts with extensive attacks on Israeli citizens, the US may also attack Iran directly. In addition to a possible military conflict in the Middle East, market oil prices are concerned about disintegration in the global economy by moving upwards.
Oil prices were +7% on Israeli attacks. Gold prices increased by +1.50%, while bitcoin fell on a risk -exist -0.9%.
Investors were cautious before the G-7 meeting of this weekend in a resort city near BANFF later this week as President Trump meets with his counterparts due to the possibility of fresh trade or tariff developments. Investors are also working for negative tariff news in the next few weeks after President Trump late Wednesday night, saying that he intends to send letters to dozens of American business partners in the next one to two weeks for setting up unilateral tariffs in the next one to two weeks.
In some positive trade news, the UK Prime Minister Stormer said on Friday that there are no obstacles to finalize the US-UK trade deal and the agreement is likely to end soon.
Friday’s initial June of the Michigan US Consumer Sentment Index increased by 60.5 points to 60.5 points, stronger than expected to grow by 53.6. In another favorable development, the expectations of inflation of 1-year fell from +6.6% to +5.1% in May, a major decline from expectations of a drop of +6.4%. Indicators of inflation of 5–10 years fell slightly from +4.2% to +4.1% in May to suit the market expectations.
Markets are exempting the possibility of 3% for cutting -25 BP rate cut at the next FOMC meeting on 17-18 June.
Foreign stock markets closed down on Friday. The Euro Stoxx closed down 50 -1.31%. China’s Shanghai Composite -0.75%shut down. Japan’s Nikkei Stock closed down 225 -0.89%.
Interest rates
On Friday, 10-year-old T-notes (znu25)-10-year-old T-Rots (Znu25) fall from 14.5 ticks. The yield of 10-year T-Rot +5.1 BP increased to 4.411%. T-Note prices fell on the implications of inflation of Friday’s +7% rally in oil prices. The 10-year-old Brikaven inflation has increased the rate of +2.2 bp to 2.291%, which is the early 5-week early. The T-Note prices failed to gain any kind of speed from safe-heven demand.
European government bond yields increased. The 10 -year -old German band yield increased +5.8 bp to 2.535%. The yield of 10 -year -old UK gilt increased to 4.550%.
In the July 24 policy meeting, Swaps are giving exemption 11% possibility to cut -25 BP rate cut by ECB.
US Stock Movers
Israel’s military attack on Iran produced a rally in oil and defense stocks, while the journey stock collapsed. Exxon (xom) +2.1%increased, and Chevron (CVX) +0.7%. Defense contractors ralled with Lockheed Martin (LMT) up +3.7%, Northrop Grumman (NOC) up +4.0%, and RTX Corp (RTX) UP +3.6%.
Travel stocks were under pressure, as tourism will be reduced when there is an expanded war in the Middle East. Booking Holdings (BKNG), Expedia Group (Exup), Hilton Worldwide Holdings (HLT), and Marriot International (Mar) all showed an average loss of about -3%.
Airlines took a hit on Friday as high oil prices mean the increase in the cost of fuel and the profit decreased. The airline’s stocks were already on the weaker ground after the news of US inflation on Thursday, which fell into an airfare -2.7% m/m in May, the fourth straight of the month’s decline, the longest skid in about a year. The American Airlines Group (AAL) and United Airlines Holdings (UAL) fell more than 4%, and Delta Air Lines (DAL) -3.8%fell. Southwest Airlines (LUV) -2.7%fell.
Except for Tesla, the brilliant 7 stocks closed on Friday due to the risk-feeling, which turned off +2%. The largest necklaces among the magnificent 7 were NVIDIA (NVDA), with a loss of -2.1%, and with a loss of more than -1% with Apple (AAPL) and Meta platforms (meta).
Visa (V) and MasterCard (MA) fell more than -4% in Friday’s Wall Street Journal report that large retailers, such as Amazon and Walmart, are investigating how to use or release stabecoin to bypass credit card fees.
Nikkei reported that if the nippon does not have enough management of management, US Steel (X) -2.6% fell to -2.6%.
Adobe (Adbe) fell over -5% after defeating the results of Q2, but was inadequate to reduce concerns that AI would cut a big cut from the revenue of ADOBE.
McDonald’s (MCD) -0.4% falls the stock to buy stock by Argus Research.
Boeing (BA) fell nearly -2% on Friday, falling on Thursday -5.14% on Thursday, as Boeing 787 Dreamliner Jet continued to fall in India on Thursday, killing more than 240 people.
Earning Report (6/16/2025)
Powerfleet Inc NJ (AIOT), Laner Corp (Len), Digital Turbine Inc.
On the date of publication, Rich Escpland did not have the positions mentioned in any securities mentioned in this article (either direct or indirectly). All information and data in this article is only for informative purposes. For more information, please see the Barkart Disclosure Policy here.
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