Thursday Afternoon Coffee - Markets Update - 12 June 2025 - Markets Inch Up as Dollar Sinks to 2025 Low; Oil Surges on Middle East Tensions Climbs

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U.S. stocks posted modest gains Thursday amid mixed economic signals, while the dollar dropped to its lowest level in over three years and oil prices jumped nearly 4% on renewed geopolitical risks. Gold and safe-haven currencies also rose as traders adjusted expectations around Federal Reserve policy and trade developments.

Equities Climb as Inflation Stays Soft

Major U.S. indexes edged higher, supported by cooler-than-expected inflation data and tech sector strength, despite pressure from ongoing tariff uncertainty.

Dow Jones Industrial Average: +35.12 points (+0.09%)

S&P 500: +17.68 points (+0.34%)

Nasdaq Composite: +51.82 points (+0.31%)

The MSCI All-Country World Index hovered just below record highs, helped by optimism over global monetary policy shifts..

Dollar Plunges to 2025 Low

The U.S. dollar fell sharply, touching its lowest level since April 2022, as traders priced in a higher chance of Federal Reserve rate cuts. Weak inflation data, geopolitical concerns, and tariff uncertainties weighed heavily.

Dollar Index DXY: -0.43% to 94.68

Euro (EURUSD: +0.51% to $1.1453

Yen USDJPY: -0.74% to 139.11

Swiss Franc (USDCHF): -0.65% to 0.802

With the dollar weakening, traders rotated into traditional safe-haven assets, including gold, which gained nearly 1% on the day.

Oil Spikes Nearly 4% on Middle East Concerns

Crude oil surged as tensions flared in the Middle East following the U.S. repositioning troops and equipment in the region. The move stoked fears of supply disruptions and drew fresh bids across energy markets.

WTI Crude (CL1!): +$2.63 (+3.93%) to $69.58/barrel

Brent Crude (BRN1!): +$2.47 (+3.61%) to $71.02/barrel

Energy stocks rallied in response, helping offset losses in the industrial sector after a Boeing Dreamliner crash in India weighed on the aerospace giant’s shares.

Gold and Havens Rally as Fed Outlook Shifts

Gold climbed as investors sought protection from growing global uncertainty. Traders now see better-than-even odds of a Fed rate cut by September, though some caution that tariffs could reignite inflation later this year.

Gold: +0.92% to $3,184.21/oz

Silver: +0.77% to $42.15/oz

Trade and Policy Developments Remain Key

President Trump signaled that new tariff notifications would be sent to several countries, casting doubt on the durability of the U.S.–China trade truce. The move comes even as inflation indicators remain subdued.

Outlook

Markets remain cautious despite gains, with traders watching inflation, global tensions, and any signs of escalation in trade policy. The dollar’s sharp decline and rising oil suggest volatility ahead, especially if geopolitical risks persist or economic signals deteriorate.

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 General news - Information source from multiple newswires.

The article and the data is for general information use only, not advice!

The Trade Academy Team