Tuesday Afternoon Coffee - Markets Update - 17 Jun 2025 - Markets Dip as Mideast Tensions Escalate; Oil Jumps on Strait of Hormuz Fears

The Trade Academy Team
Jun 17
2 min read

Markets Update: Wall Street retreated Tuesday as geopolitical tensions flared in the Middle East and President Donald Trump’s abrupt exit from the G7 summit dashed hopes for trade progress. Rising oil prices and weak retail sales added to investor caution ahead of a pivotal week for central bank decisions.

Global Markets Roundup: 17 Jun 2025

Stocks Fall as Conflict and Uncertainty Weigh

U.S. indexes closed lower, pressured by persistent fighting between Israel and Iran and disappointing economic data. Trump’s early return from the G7 summit—during which he warned Iran’s leader was “safe for now”—signaled escalating geopolitical stakes.

Dow Jones Industrial Average: -305.20 points (-0.72%) to 42,209.89
S&P 500: -51.06 points (-0.85%) to 5,982.05
Nasdaq Composite: -180.12 points (-0.92%) to 19,521.09

Energy was the lone bright spot in the S&P 500, buoyed by oil’s sharp rally. All other sectors declined, including notable drops in solar stocks after Senate Republicans proposed phasing out renewable tax credits by 2028.

Oil Surges as Strait of Hormuz Risks Rise

Crude prices spiked as traders assessed the potential for supply disruptions near the Strait of Hormuz, a key global shipping artery. The U.S. has deployed more fighter jets to the region, intensifying fears of broader conflict.

WTI Crude (CL1!): +4.46% to $74.97/barrel
Brent Crude (BRN1!): +4.52% to $76.54/barrel

Although no direct supply disruptions have been confirmed, a ship collision in the Gulf of Oman briefly unsettled markets.

Retail Weakness and Fed Caution

U.S. retail sales fell more than expected in May, marking the sharpest decline in four months. Industrial output barely rose, raising questions about the economy’s resilience.

Despite this, the Federal Reserve is expected to keep rates steady in Wednesday’s decision. Traders are eyeing Chair Jerome Powell’s remarks for signals on future policy, particularly in light of Trump’s tariff threats and economic soft spots.

10-Year Treasury Yield: 4.385%, down 6.9 basis points.

Gold Dips, Dollar Gains

The dollar rose broadly, pushing gold lower for a second consecutive day. The greenback gained 0.6% on the Dollar Index DXY, and 0.7% against the euro EURUSD, on its way to its biggest daily jump in three weeks.

Gold (August): -$8.40 to $3,408.90/oz.

Grains Mixed on Crop Woes

Wheat futures jumped after the USDA reported wet conditions were hampering the winter harvest. Soybeans also edged higher, while corn slipped.

Wheat (July): +2.3% to $5.47¾/bushel
Soybeans (July): +0.4% to $10.75½/bushel
Corn (July): -0.9% to $4.31½/bushel

Corporate Moves and Sector Highlights

Eli Lilly shares fell after announcing it will acquire Verve Therapeutics for up to $1.3 billion. Verve shares surged.
Solar stocks like Enphase Energy and Sunrun declined following tax credit rollback proposals.

Outlook

With Trump’s G7 departure, mounting Middle East tensions, and key central bank meetings underway, market sentiment remains fragile. Analysts warn that without clear policy direction or easing in geopolitical flashpoints, volatility may persist.

Looking forward refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.

General news - Information source from multiple newswires.

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

The Trade Academy Team