44. Weekly Market Recap: Key Movements & Insights
Mideast Crisis Ignites Oil Prices 🔥 Is a Wider War About to Tank the Market? 🤔
Geopolitical Shock Hits Wall Street, S&P 500 Snaps Winning Streak as Mideast Tensions Flare
Wall Street’s quiet week was shattered at the last minute as a dramatic escalation in Middle East conflict sent investors fleeing for safety. Stocks, which had been treading water for days, tumbled on Friday after Israel launched an unprecedented attack on Iran. The move ignited fears of a wider war, sending oil prices soaring and snapping a two-week winning streak for the S&P 500.
For the week, the S&P 500 fell 0.5%. The sudden risk-off turn overshadowed mid-week optimism about tamer inflation and progress on trade, reminding investors how quickly geopolitical shocks can upend markets. All eyes are now on the Fed's upcoming policy meeting and the potential for sustained inflation driven by energy prices.
A Volatile Week on Wall Street
The week began on a calm note, with markets posting modest gains on Monday and Tuesday as traders awaited news from a key trade meeting between the U.S. and China.
Positive developments emerged on Wednesday. The White House announced that a framework for further trade discussions with China had been established, a welcome sign for markets anxious about the impact of tariff policies. On the same day, a new CPI report showed that inflation in May was cooler than anticipated. Despite the good news, the S&P 500 closed slightly in the red, signaling underlying caution.
That caution gave way to a slight rally on Thursday, buoyed by a strong earnings report from tech giant Oracle (ORCL) and another positive economic report on producer prices. However, renewed uncertainty around potential tariffs from the White House kept gains in check. The real market-moving news broke late Thursday night, as reports of an Israeli strike against Iran sent futures tumbling and set the stage for a volatile Friday.
Mideast Conflict Ignites Market Fears
Friday's session was dominated by the fallout from the Israeli attack on Iranian nuclear and military sites. Iran vowed a "crushing response," and the rhetoric sent shockwaves through global markets.
Oil prices saw their largest single-day surge in years on fears that a broader conflict could disrupt critical energy supplies from the region. U.S. crude oil jumped nearly 13% for the week. Investors dumped stocks and rushed into traditional safe havens. Gold climbed 3.6% for the week, pushing past $3,400 an ounce. Wall Street’s "fear gauge," the VIX, surged 19% on Friday alone.
The Dow Jones Industrial Average fell 770 points on Friday, and the S&P 500 dropped over 1.1%. Analysts warned that the key risk is a disruption to the Strait of Hormuz, the world's most critical chokepoint for oil. "Should oil exports through the Strait of Hormuz be affected, we could see $100 oil," noted the president of one energy consulting firm.
Fed on Hold as Inflation Risks Rise
The surge in oil prices complicates the outlook for the Federal Reserve, which has been under pressure from the White House to cut interest rates. Fed officials have remained patient, waiting to see how the administration's policy changes affect the economy. The conflict now adds a significant new variable.
"If this situation were to deepen further and oil prices were to stay durably higher, it would just add to the challenges that the Fed is already facing," a senior global economist at a major bank told CNN. The risk of rising energy inflation gives the central bank another reason to remain cautious and could push any potential rate cuts to the end of the year.
For now, the Fed can afford to wait, primarily due to the resilience of the U.S. labor market. With unemployment low and the economy still adding jobs, policymakers are not being forced to act.
Weekly Market Snapshot
Overall, it was a strong week for hard assets and a poor one for equities tied to economic growth. Energy minerals, consumer durables, and health technology were the top-performing sectors. On the other side of the ledger, commercial services, retail trade, and transportation lagged significantly.
Cryptocurrencies were volatile. Bitcoin surged past $110,000 on Monday before pulling back for the rest of the week, finishing down 0.6%. Treasury yields fell over the week, as two separate economic reports suggested that near-term inflation was less of a threat before the conflict erupted.
Upcoming Key Events:
Monday, June 16:
Earnings: Lennar Corporation (LEN)
Economic Data: None
Tuesday, June 17:
Earnings: Jabil Inc. (JBL), Ashtead Group plc (AHT)
Economic Data: Retail Sales MoM
Wednesday, June 18:
Earnings: Haleon plc (HLN)
Economic Data: Fed Interest Rate Decision, FOMC Economic Projections, Fed Press Conference
Thursday, June 19:
Earnings: Ferrovial SE (FER),
Economic Data: None
Friday, June 20:
Earnings: Accenture Plc (ACN), The Kroger Co. (KR), Darden Restaurants, Inc., CarMax, Inc. (KMX)
Economic Data: Philadelphia Fed Manufacturing Index
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Index Insights: How Major Benchmarks Performed Last Week
Price>MA10: 🔴
Price>MA20: 🟢
MA10>MA20: 🟢
Market Trend*:🔴
Trend Signal: 🟢
*When Price and Moving Averages are all green, the Market Trend will also be green
Price>MA10: 🔴
Price>MA20: 🟢
MA10>MA20: 🟢
Market Trend: 🔴
Trend Signal: 🟢
Price>MA10: 🔴
Price>MA20: 🟢
MA10>MA20: 🟢
Market Trend: 🔴
Trend Signal: 🟢
Sector Performance: Winners and Losers from Last Week
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Winners
🛢️ Energy (+5.67%)
Energy dominated the market this week, surging an impressive 5.67%. This outstanding performance was likely fueled by strong commodity prices and a positive outlook on global demand, reflecting robust investor confidence in the sector.
🏥 Healthcare (+1.04%)
The Healthcare sector posted a healthy gain of 1.04%, indicating sustained investor interest. This rise is likely supported by ongoing advancements in medical technology and the sector's reliable, defensive characteristics in a fluctuating market.
⚡ Utilities (+0.56%)
Utilities saw a modest increase of 0.56%. This gain, though small, highlights the sector's appeal as a safe haven for investors seeking stability and consistent dividends amidst broader economic uncertainty.
🧱 Basic Materials (+0.21%)
Basic Materials edged up by 0.21%, suggesting cautious optimism about industrial demand and economic activity. The slight gain points to a steady but watchful market for commodities.
Losers
💻 Technology (−0.16%)
Technology experienced a slight dip of 0.16%. This minor pullback could indicate some profit-taking from investors after a period of strong performance or a slight shift in market focus toward other sectors.
🏢 Real Estate (−0.23%)
The Real Estate sector slipped by 0.23%. This decline may reflect investor concerns regarding interest rate sensitivity and evolving trends in the commercial and residential property markets.
🛍️ Consumer Cyclical (−0.76%)
Consumer Cyclical stocks fell by 0.76%, signaling that consumers may be tightening their belts on non-essential spending in response to mixed economic signals.
📱 Communication Services (−1.12%)
Communication Services declined by 1.12%. The sector faced headwinds, possibly due to intense competition and changing consumer behaviors in media and telecommunications.
🛡️ Consumer Defensive (−1.22%)
Consumer Defensive stocks dropped 1.22%, suggesting a rotation away from safety stocks as investors may be increasing their risk appetite in other areas of the market.
🏭 Industrials (−1.30%)
Industrials saw a 1.30% decrease, likely reflecting concerns about a potential slowdown in economic growth and its impact on manufacturing and infrastructure development.
💰 Financial (−2.28%)
Financials recorded the largest loss of the week, falling 2.28%. This significant downturn could be driven by anxieties over the broader economic outlook, future interest rate direction, and tightening credit conditions.
🌟 Weekly Industry Leaders 🌟
🛢️ Oil & Gas E&P (+8.10%)
Oil & Gas Exploration & Production led all industries with a remarkable 8.10% gain. This surge reflects strong investor confidence in exploration activities and rising energy demand, positioning the sector as this week's top performer.
⛽ Oil & Gas Integrated (+6.43%)
Integrated Oil & Gas firms posted a solid 6.43% increase, underscoring the broad strength across the energy value chain. The performance highlights the advantages of a diversified business model in a favorable market.
🔗 Oil & Gas Midstream (+5.20%)
The Midstream sector, responsible for transportation and storage, advanced by 5.20%. This gain points to the critical role of energy infrastructure and stable demand for moving resources from production to market.
🛠️ Oil & Gas Equipment & Services (+4.98%)
Oil & Gas Equipment & Services climbed 4.98%, indicating a ramp-up in drilling and production activities. The sector's growth suggests companies are investing more heavily in their operational capacity.
🔥 Oil & Gas Refining & Marketing (+4.88%)
Refining & Marketing companies rose by 4.88%, benefiting from strong margins and consistent consumer demand for finished energy products.
⚫ Thermal Coal (+4.12%)
Thermal Coal saw a significant 4.12% gain, highlighting its persistent role in the global energy mix and suggesting strong demand for traditional power sources.
⚛️ Uranium (+3.43%)
Uranium advanced 3.43%, reflecting growing interest in nuclear power as a key component of the clean energy transition and a reliable source of baseload electricity.
🛡️ Insurance – Reinsurance (+2.96%)
The Reinsurance industry posted a 2.96% gain, suggesting a stable risk environment and strong pricing power, which has attracted positive investor sentiment.
🏘️ Insurance – Property & Casualty (+2.18%)
Property & Casualty Insurers increased by 2.18%, indicating steady performance and investor confidence in the sector's ability to manage risk and deliver returns.
💧 Utilities – Regulated Water (+2.08%)
Rounding out the top ten, Regulated Water Utilities gained 2.08%. This defensive sector's rise highlights its appeal to investors seeking stability and reliable dividends in a complex market.
🚀 Top Market Gainers: Longevity Genes, Oil Speculation, and Bitcoin Plays Fuel Market Frenzy
KLTO Klotho Neurosciences Inc (+709.71%) 🧬 Klotho Neurosciences, Inc. shares exploded after the company announced an approach to increase longevity and healthy life span by replacing a silenced gene known as alpha-Klotho ("a-KLOTHO"). The news sent the stock into a massive rally as investors piled into the potential anti-aging breakthrough.
RBNE Robin Energy Ltd (+316.36%) 🛢️ Robin Energy, a small-cap oil name, surged on speculative buying. The rally was fueled by spiking oil prices and heightened geopolitical tensions following the start of the Israel-Iran conflict, with no company-specific news driving the move.
HUSA Houston American Energy Corp (+222.75%) ⛽ Houston American Energy Corp, another small-cap oil stock, rode the same wave as Robin Energy. The sharp increase was attributed to speculation tied to rising oil prices and the conflict in the Middle East, rather than any fundamental news from the company.
KNW Know Labs Inc (+123.07%) ₿ Know Labs saw its stock jump significantly after the announcement that Greg Kidd intends to acquire a controlling interest in the company. The deal includes plans to introduce a Bitcoin Treasury Strategy, sparking renewed investor interest and high trading volume.
XTIA XTI Aerospace Inc (+111.15%) ✈️ XTI Aerospace gained altitude on speculative interest after the company issued a statement commending President Trump's recent Executive Order on domestic drone production. XTI reinforced the critical role of its vertical takeoff and landing (VTOL) technology for national security, attracting traders despite a lack of direct company news.
🔻 Biggest Decliners: Lock-up Waivers, Dilution, and Profit-Taking Punish Stocks
BIYA Baiya International Group Inc (-82.49%) 🔒 Baiya International Group plummeted after the company announced a partial waiver of its IPO lock-up restriction. The news opened the door for insiders to sell shares, leading to a massive sell-off and a collapse in the stock price.
SBET SharpLink Gaming Inc (-74.81%) 💸 SharpLink Gaming shares tumbled after the company disclosed it had sold shares under its$1 billion ATM equity program between May 30 and June 12. The company raised approximately $79 million in gross proceeds, with plans to use a majority to purchase more ETH, but the dilution hammered the stock.
MULN Mullen Automotive Inc (-67.89%) 🚗 Mullen Automotive continued its long-term downtrend with another sharp drop. With no new press releases, the decline was attributed to the company's ongoing and aggressive use of share dilution to fund its operations, a familiar pattern for MULN investors.
JZXN Jiuzi Holdings Inc (-66.28%) 📉 Jiuzi Holdings Inc. fell sharply after announcing it had raised funds through convertible notes. The purpose of the raise is to acquire Bitcoin as part of a new strategic layout, but the immediate impact of the dilutive financing sent shares spiraling downward.
LYRA Lyra Therapeutics Inc (-53.83%) 💊 Lyra Therapeutics experienced a significant pullback as investors took profits following its spectacular run. After soaring over 350% in recent weeks on positive clinical trial news, the stock corrected sharply in the absence of new catalysts, suggesting the initial rally was overextended.
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