US Stocks ended with little movement on Friday in a calm return from the Juneteenth holiday. But beneath the surface, things aren’t so chill.
The S&P 500 dipped 0.2%, locking in its second straight week of small losses. The Dow Jones managed to rise by 35 points (0.1%), while the Nasdaq dropped 0.5%. Overall, the U.S. stock market was mixed, reflecting a nervous waiting game investors are playing.
All Eyes on Trump—and Iran
The biggest weight on markets? Trump’s looming decision on Iran. The former president said he’ll decide within two weeks whether to involve the U.S. military in the growing Israel-Iran conflict. That possibility has traders jittery.
Oil prices have been bouncing like a yo-yo. Why? Because Iran is a key oil player, and any escalation could choke supply from the Strait of Hormuz—a narrow waterway that handles a huge chunk of the world’s crude oil.
That’s made U.S. stocks especially sensitive. When oil spikes, so do inflation fears. When oil dips, so do those worries—at least temporarily.
“These types of situations can stress markets,” said Brian Jacobsen of Annex Wealth Management. “But often the best strategy is to ride it out.”
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Winners and Losers on Wall Street
Still, a few names stood out.
Kroger jumped nearly 10% after it posted stronger profits than expected and raised its full-year revenue outlook. CarMax climbed 6.6% as more people bought used cars—nearly 6% more than last year.
But it wasn’t all good news. Smith & Wesson plunged almost 20% after missing Wall Street’s expectations. The gunmaker blamed inflation, high interest rates, and tariff uncertainty.
Tariffs Freeze Forecasts
Uncertainty around trade is spreading. Several companies are pulling back their 2025 forecasts, unsure about how Trump’s paused tariffs will play out. If he strikes new trade deals, that could shift everything—from costs to supply chains.
Even the Federal Reserve is in wait-and-see mode. It left interest rates untouched this week. Why? It wants more clarity on tariffs and inflation before making another move.
Bonds Stay Steady
In the bond market, things were calm. The 10-year Treasury yield ticked down slightly to 4.37%. The 2-year yield, which reacts more to Fed policy, slipped to 3.90%.
Overseas Markets Stay Mixed
Globally, the picture was also mixed. Japan’s Nikkei fell 0.2% as May inflation hit 3.7%, giving Prime Minister Shigeru Ishiba more economic headaches.
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