Market Update
U.S. Stocks Keep Scaling Higher Despite War, Tariffs and Federal Debt Headwinds
Barry Adams
26 Jun, 2025
New York City
Wall Street indexes retained upward bias despite looming global trade uncertainties and geopolitical tensions.
The S&P 500 index increased 0.1%, and the tech-heavy Nasdaq Composite advanced 0.2% as investors reassessed the interest rate outlook.
The dollar index declined to 97.39 on Thursday and fell to a low not seen since February 2022, amid growing expectations that the Federal Reserve may cut interest rates sooner than previously anticipated.
Crude oil prices declined and fell below the levels seen on June 12, when Israel launched its wave of missile attacks on Iran's nuclear infrastructure and military leaders.
First Quarter GDP Contraction Deeper Than Previously Estimated
Closer to home, first-quarter gross domestic product was deeper than previously estimated, according to the latest update from the U.S. Commerce Department.
The GDP contraction was revised to an annual pace of decline of 0.5% from the previous estimate of 0.2%, driven by the downward revisions in consumer spending and exports, offset by a smaller improvement in imports.
Volatile New Durable Goods Orders Surged in May
New orders for manufactured goods soared 16.4% from the previous month to $343.6 billion in May, the largest increase since July 2014, following a revised 6.6% decrease in April, the U.S. Census Bureau reported Thursday.
Transportation equipment led the rebound with a surge of 48.3%, driven primarily by the 231% increase in nondefense aircraft and parts.
Meanwhile, nondefense capital goods excluding volatile aircraft, a proxy for business spending, advanced 1.7% in May, following a revised 1.4% increase in April.
Continuing Jobless Claims Signal Rising Hurdles for Jobseekers
U.S. initial jobless claims eased to 236,000 in the week ending June 21, a decline of 10,000 from the previous week, according to a weekly update from the U.S. Department of Labor.
Continuing claims, which lag by one week, increased by 37,000 to 1.97 million and advanced to the highest since November 2021, signaling job seekers are struggling to find new jobs.
On the earnings front, investors reviewed the latest updates from Micron Technology, Walgreens Boots Alliance, and H.B. Fuller. Nike is scheduled to release earnings after the close of Thursday's regular trading session.
U.S. Stock Movers
H.B. Fuller Company soared 10.5% to $61.82 after the adhesive maker reported sharply higher adjusted earnings per share of $1.18.
Micron Technology Inc. advanced 1.9% to $129.65 after the memory and storage products maker reported better-than-expected results in the fiscal third quarter ending on May 29.
Revenue edged up to $9.30 billion from $6.81 billion, net income surged to $1.88 billion from $332 million, and diluted earnings per share rose to $1.68 from 30 cents a year ago.
Nike Inc. jumped 0.4% to $61.10 ahead of the athletic shoemaker's quarterly results after the close of regular trading hours.
Walgreens Boots Alliance Inc. inched up 0.2% to $11.33 after the pharmacy retailer reported better-than-expected results in the fiscal third quarter ending in May.
Sales edged up to $38.99 billion from $36.35 billion, net income swung to a loss of $175 million from a profit of $344 million, and diluted earnings per share swung to a loss of 20 cents from a profit of 40 cents a year ago.
Euro Rebounds to 4-Year High Amid Continued Aversion to Dollar-Denominated Assets
Bridgette Randall
26 Jun, 2025
London
European markets edged higher and attempted to erase losses in the previous session amid a shaky truce in the Middle East.
Benchmark indexes in Frankfurt, Paris, Milan, and London edged higher as investors reassessed the risks of global crude oil supply in the Strait of Hormuz.
Market indexes hovered near record highs, and crude oil prices fell to the level before the start of the Israeli bombing of Iran's nuclear infrastructure on June 14.
Despite Israel's overwhelming military superiority, the Jewish nation's aerial bombing campaign failed to dislodge the present government and strike fatal blows to its nuclear program.
The tentative ceasefire is holding for now, but two nations are likely to trade attacks in the near future, amid Israel's vows to conduct additional and precision strikes deep into Iran.
Brent crude oil prices hovered near the level before the start of the Iran-Israel war earlier in the month.
Moreover, the euro edged to the high not seen since 2021 amid general weakness in the U.S. dollar and investors seeking safe haven in non-U.S.-dollar-denominated assets.
Europe Indexes and Yields
The DAX index increased by 0.5% to 23,625.17, the CAC-40 index edged higher 0.4% to 7,589.01, and the FTSE 100 index advanced 0.1% to 8,725.40.
The yield on 10-year German bonds inched lower to 2.54%, French bonds decreased to 3.23%, the UK gilts moved down to 4.46%, and Italian bonds edged lower to 3.48%.
The euro increased to $1.17; the British pound was higher at $1.37; and the U.S. dollar was lower and traded at 80.13 Swiss cents.
Brent crude increased $0.21 to $67.89 a barrel, and the Dutch TTF natural gas was higher by €0.06 to €35.43 per MWh.
Europe Movers
H&M Hennes & Mauritz AB increased 5.4% to SEK 136.70 after the Sweden-based apparel retailer reported weaker-than-expected sales in the fiscal second quarter but guided an uptick in demand to kick-start the summer season.
Net sales declined to SEK 56.71 billion from SEK 59.60 billion, profit declined to SEK 3.98 billion from SEK 5.08 billion, and earnings per share fell to SEK 2.48 from SEK 3.15 a year ago.
Defense stocks rallied following NATO's commitment to increase defense spending to 5% from 2% of gross domestic product but failed to agree on a deadline.
Rheinmetall AG rose 3.1% to €1,791.50, Safran SA added 0.8% to €265.70, BAE Systems plc inched higher 0.8% to 1,853.0 pence, and Rolls-Royce Holdings PLC advanced 0.8% to 923.80 pence.
Euro Rebounds to 4-Year High Amid Continued Aversion to Dollar-Denominated Assets
Bridgette Randall
26 Jun, 2025
London
European markets edged higher and attempted to erase losses in the previous session amid a shaky truce in the Middle East.
Benchmark indexes in Frankfurt, Paris, Milan, and London edged higher as investors reassessed the risks of global crude oil supply in the Strait of Hormuz.
Market indexes hovered near record highs, and crude oil prices fell to the level before the start of the Israeli bombing of Iran's nuclear infrastructure on June 14.
Despite Israel's overwhelming military superiority, the Jewish nation's aerial bombing campaign failed to dislodge the present government and strike fatal blows to its nuclear program.
The tentative ceasefire is holding for now, but two nations are likely to trade attacks in the near future, amid Israel's vows to conduct additional and precision strikes deep into Iran.
Brent crude oil prices hovered near the level before the start of the Iran-Israel war earlier in the month.
Moreover, the euro edged to the high not seen since 2021 amid general weakness in the U.S. dollar and investors seeking safe haven in non-U.S.-dollar-denominated assets.
Europe Indexes and Yields
The DAX index increased by 0.5% to 23,625.17, the CAC-40 index edged higher 0.4% to 7,589.01, and the FTSE 100 index advanced 0.1% to 8,725.40.
The yield on 10-year German bonds inched lower to 2.54%, French bonds decreased to 3.23%, the UK gilts moved down to 4.46%, and Italian bonds edged lower to 3.48%.
The euro increased to $1.17; the British pound was higher at $1.37; and the U.S. dollar was lower and traded at 80.13 Swiss cents.
Brent crude increased $0.21 to $67.89 a barrel, and the Dutch TTF natural gas was higher by €0.06 to €35.43 per MWh.
Europe Movers
H&M Hennes & Mauritz AB increased 5.4% to SEK 136.70 after the Sweden-based apparel retailer reported weaker-than-expected sales in the fiscal second quarter but guided an uptick in demand to kick-start the summer season.
Net sales increased to SEK 55.33 billion from SEK 53.67 billion, net income declined to SEK 590 million from SEK 1.24 billion, and earnings per share fell to 37 cents from 77 cents a year ago.
Defense stocks rallied following NATO's commitment to increase defense spending to 5% from 2% of gross domestic product but failed to agree on a deadline.
Rheinmetall AG rose 3.1% to €1,791.50, Safran SA added 0.8% to €265.70, BAE Systems plc inched higher 0.8% to 1,853.0 pence, and Rolls-Royce Holdings PLC advanced 0.8% to 923.80 pence.
Europe Movers: H&M, Inchcape, Serco
Inga Muller
26 Jun, 2025
Frankfurt
H&M AB traded up 7.5% at 139.55 krona after the Swedish apparel company reported results for the fiscal second quarter ending on May 31.
Net sales declined to SEK 56.71 billion from SEK 59.60 billion, profit declined to SEK 3.98 billion from SEK 5.08 billion, and earnings per share fell to SEK 2.48 from SEK 3.15 a year ago.
Operating profit in the second quarter amounted to SEK 5.91 billion, compared to SEK 7.10 billion, corresponding to an operating margin of 10.4%, compared to 11.9% in the previous year, respectively.
Net sales in the first half of the year edged down to SEK 112.05 billion from SEK 113.27 billion, net income dropped to SEK 4.57 billion from SEK 6.32 billion, and earnings per share fell to SEK 2.85 from SEK 3.91 a year earlier.
Operating profit in the six-month period amounted to SEK 7.12 billion, compared to SEK 9.17 billion, with an operating margin of 6.4%, compared to 8.1% in the prior year, respectively.
H&M is expected to pay a cash dividend of SEK 3.40 per share on November 12.
Inchcape Plc. gained 5.4% to 718.00 pence after the UK-based automotive distributor released its trading update ahead of half-year results ending on June 30.
The company said it expects a limited tariff-related impact on its business operations.
Inchcape reported continued improvement in the Americas, Australia, Europe, and Africa, while certain markets in Asia are facing ongoing headwinds.
The company has won nine distribution contracts year-to-date, including two additional awards during the fiscal second quarter of 2025.
The automotive distributor guided growth in full-year earnings per share, driven by profit growth and ongoing share buybacks, as £150 million of share repurchases were already completed, while £100 million remained under repurchase authorization.
Serco Group Plc. advanced 1.3% to 196.10 pence after the UK-based defense, health, and transport government services provider released its trading update for the first six months of 2025.
Revenue increased 2% to £2.4 billion from £2.36 billion, and underlying operating profit fell to £140 million from £142 million a year ago.
Overall orders amounted to £3 billion in the first half of the year, with a larger share from the defense order.
The company completed the acquisition of Northrop Grumman’s mission training and satellite ground network communications software business (MT&S), enhancing capability and scale in the U.S. and international defense markets.
Serco guided full-year revenue to improve to approximately 1% due to higher than anticipated activity levels in the immigration sector, as overall revenue outlook was revised higher to £4.9 billion from £4.8 billion compared to £4.8 billion in 2024.
The underlying operating profit for the full year is estimated at £260 million, compared to £274 million a year earlier, reflecting impacts from higher UK national insurance contributions and the conclusion of the Australian immigration contract.
Europe Movers: H&M, Inchcape, Serco
Inga Muller
26 Jun, 2025
Frankfurt
H&M AB traded up 7.5% at 139.55 krona after the Swedish apparel retailer reported results for the fiscal first quarter ending on February 28.
Net sales increased to SEK 55.33 billion from SEK 53.67 billion, ne income declined to SEK 590 million from SEK 1.24 billion, and earnings per share fell to 37 cents from 77 cents a year ago.
The company said sales in March are expected to increase by 1% in local currencies compared with the same month the previous year.
The largest increase in sales in the first quarter was registered in Southern Europe, where the company operates 567 stores.
H&M announced a dividend of SEK 6.80 per share, payable in two installments, and the company's board authorized to buy back its Class B shares in the period up to the 2026 annual general meeting.
Inchcape Plc. gained 5.4% to 718.00 pence after the UK-based automotive distributor released its trading update ahead of half-year results ending on June 30.
The company said it expects a limited tariff-related impact on its business operations.
Inchcape reported continued improvement in the Americas, Australia, Europe, and Africa, while certain markets in Asia are facing ongoing headwinds.
The company has won nine distribution contracts year-to-date, including two additional awards during the fiscal second quarter of 2025.
The automotive distributor guided growth in full-year earnings per share, driven by profit growth and ongoing share buybacks, as £150 million of share repurchases were already completed, while £100 million remained under repurchase authorization.
Serco Group Plc. advanced 1.3% to 196.10 pence after the UK-based defense, health, and transport government services provider released its trading update for the first six months of 2025.
Revenue increased 2% to £2.4 billion from £2.36 billion, and underlying operating profit fell to £140 million from £142 million a year ago.
Overall orders amounted to £3 billion in the first half of the year, with a larger share from the defense order.
The company completed the acquisition of Northrop Grumman’s mission training and satellite ground network communications software business (MT&S), enhancing capability and scale in the U.S. and international defense markets.
Serco guided full-year revenue to improve to approximately 1% due to higher than anticipated activity levels in the immigration sector, as overall revenue outlook was revised higher to £4.9 billion from £4.8 billion compared to £4.8 billion in 2024.
The underlying operating profit for the full year is estimated at £260 million, compared to £274 million a year earlier, reflecting impacts from higher UK national insurance contributions and the conclusion of the Australian immigration contract.
Japan Indexes Reach 4-Month Highs, AI-Linked Tech Stocks Approach 2025 Peaks
Akira Ito
26 Jun, 2025
Tokyo
Japan's market indexes advanced and rose to four-month highs amid a rebound in technology stocks.
The Nikkei 225 Stock Average rose more than 1%, and the broader Topix edged up a fraction, following the rise in artificial intelligence-linked stocks.
In overnight trading in New York, Nvidia advanced to a new record high and reclaimed its status as the world's most valuable company.
On the domestic economic front, investors reassessed the central bank's cautious approach in normalizing interest rates amid heightened geopolitical risks and persistent trade uncertainties.
The yen held near 144.50 against the U.S. dollar, as investors continued to seek safety in non-U.S. dollar-denominated assets.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 1.4% to 39,503.16, and the broader Topix edged 0.5% to 2,797.33.
Semiconductor equipment makers advanced, following the surge in Nvidia stock in overnight trading.
Tokyo Electron Ltd. advanced 4% to ¥26,390.0, Advantest Corp. gained 5.2% to ¥10,720.0, and Disco Corp. jumped 1.7% to ¥39,430.0.
Nippon Yusen KK advanced 1.7% to ¥5,101.0, Mitsui O.S.K. Lines Ltd. gained 1.4% to ¥4,833.0, and Kawasaki Kisen Kaisha Ltd. jumped 0.8% to ¥2,033.50.
Japan Indexes Reach 4-Month Highs, AI-Linked Tech Stocks Approach 2025 Peaks
Akira Ito
26 Jun, 2025
Tokyo
Japan's market indexes advanced and rose to four-month highs amid a rebound in technology stocks.
The Nikkei 225 Stock Average rose more than 1%, and the broader Topix edged up a fraction, following the rise in artificial intelligence-linked stocks.
In overnight trading in New York, Nvidia advanced to a new record high and reclaimed its status as the world's most valuable company.
On the domestic economic front, investors reassessed the central bank's cautious approach in normalizing interest rates amid heightened geopolitical risks and persistent trade uncertainties.
The yen held near 144.50 against the U.S. dollar, as investors continued to seek safety in non-U.S. dollar-denominated assets.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 1.4% to 39,503.16, and the broader Topix edged 0.5% to 2,797.33.
Semiconductor equipment makers advanced, following the surge in Nvidia stock in overnight trading.
Tokyo Electron Ltd. advanced 4% to ¥26,390.0, Advantest Corp. gained 5.2% to ¥10,720.0, and Disco Corp. jumped 1.7% to ¥39,430.0.
Nippon Yusen KK advanced 1.7% to ¥5,101.0, Mitsui O.S.K. Lines Ltd. gained 1.4% to ¥4,833.0, and Kawasaki Kisen Kaisha Ltd. jumped 0.8% to ¥2,033.50.
U.S. Movers: Micron, MillerKnoll, Raymond James, Walgreens
Scott Peters
26 Jun, 2025
New York City
Micron Technology Inc. gained 0.9% to $128.45 after the memory and storage solution provider reported results for the fiscal third quarter ending on May 29.
Revenue edged up to $9.30 billion from $6.81 billion, net income surged to $1.88 billion from $332 million, and diluted earnings per share rose to $1.68 from 30 cents a year ago.
The company guided fourth-quarter revenue to be between $10.7 billion and $300 million, compared to $7.75 billion, and diluted earnings per share between $2.29 and 15 cents, compared to 79 cents a year earlier, respectively.
Non-GAAP diluted earnings per share are estimated between $2.50 and 15 cents in the fourth quarter, compared to $1.18 a year ago.
Raymond James Financial Inc. traded flat at $151.73 after the financial services company released its monthly operating data.
Client assets under administration in May increased 9% to $1.58 trillion from $1.45 trillion a year ago and were up 3% over the preceding month, as private client assets grew 13% and private client assets in fee-based accounts advanced 12%.
Financial assets under management grew 12% to $245.2 billion from $226.0 billion in the prior year.
The company said clients’ domestic cash sweep and Enhanced Savings Program balances of $54.2 billion declined 4% from the previous year and 3% sequentially over the preceding month.
MillerKnoll Inc. gained 10.5% to $19.47 after the office furniture maker reported results for the fiscal fourth quarter ending on May 31.
Net sales increased to $961.8 million from $889.9 million, net income swung to a loss of $57.1 million from a profit of $9.9 million, and diluted earnings per share swung to a loss of 84 cents from a profit of 14 cents a year ago.
Overall orders increased 11.1% to $1.04 billion, and up 10.7% organically from a year earlier.
For the full year, net sales jumped to $3.67 billion from $3.63 billion, net income swung to a loss of $36.9 million from a profit of $82.3 million, and diluted earnings per share swung to a loss of 54 cents from a profit of $1.11 a year earlier.
Walgreens Boots Alliance Inc. gained 0.8% to $11.40 after the pharmacy retailer reported results for the fiscal third quarter ending on May 31.
Sales edged up to $38.99 billion from $36.35 billion, net income swung to a loss of $175 million from a profit of $344 million, and diluted earnings per share swung to a loss of 20 cents from a profit of 40 cents a year ago.
Operating income in the third quarter was $53 million, compared to $111 million, and adjusted earnings per share was 38 cents, compared to 63 cents a year earlier, respectively.
“Results reflect continued improvement in our U.S. healthcare segment and benefits from our cost-savings initiatives, while we continued to see weakness in our U.S. front-end sales,” the company said in a release to investors.
U.S. Movers: Micron, MillerKnoll, Raymond James
Scott Peters
26 Jun, 2025
New York City
Micron Technology Inc. gained 0.9% to $128.45 after the memory and storage solution provider reported results for the fiscal third quarter ending on May 29.
Revenue edged up to $9.30 billion from $6.81 billion, net income surged to $1.88 billion from $332 million, and diluted earnings per share rose to $1.68 from 30 cents a year ago.
The company guided fourth-quarter revenue to be between $10.7 billion and $300 million, compared to $7.75 billion, and diluted earnings per share between $2.29 and 15 cents, compared to 79 cents a year earlier, respectively.
Non-GAAP diluted earnings per share are estimated between $2.50 and 15 cents in the fourth quarter, compared to $1.18 a year ago.
Raymond James Financial Inc. traded flat at $151.73 after the financial services company released its monthly operating data.
Client assets under administration in May increased 9% to $1.58 trillion from $1.45 trillion a year ago and were up 3% over the preceding month, as private client assets grew 13% and private client assets in fee-based accounts advanced 12%.
Financial assets under management grew 12% to $245.2 billion from $226.0 billion in the prior year.
The company said clients’ domestic cash sweep and Enhanced Savings Program balances of $54.2 billion declined 4% from the previous year and 3% sequentially over the preceding month.
MillerKnoll Inc. gained 10.5% to $19.47 after the office furniture maker reported results for the fiscal fourth quarter ending on May 31.
Net sales increased to $961.8 million from $889.9 million, net income swung to a loss of $57.1 million from a profit of $9.9 million, and diluted earnings per share swung to a loss of 84 cents from a profit of 14 cents a year ago.
Overall orders increased 11.1% to $1.04 billion, and up 10.7% organically from a year earlier.
For the full year, net sales jumped to $3.67 billion from $3.63 billion, net income swung to a loss of $36.9 million from a profit of $82.3 million, and diluted earnings per share swung to a loss of 54 cents from a profit of $1.11 a year earlier.
HKMA Defends Currency Peg, Three New Issues Start Trading on Hong Kong Exchange
Li Chen
26 Jun, 2025
Hong Kong
China and Hong Kong stock market indexes lacked direction amid heightened geopolitical tensions and a lack of progress on U.S. tariff negotiations.
The Hang Seng index fell 0.5%, and the mainland-focused CSI 300 index decreased a fraction, as investors focused on multiple headwinds, including U.S. tariff negotiations.
Negotiations with the U.S. have stalled over the last week as China pushes for lower tariffs, and the U.S. demands a stable supply of rare earth materials.
In Hong Kong, the movement in the currency market also garnered investor attention, as the Hong Kong Monetary Authority moved to keep the exchange rate within the target band.
The HKMA sold the equivalent of US$1.2 billion and purchased Hong Kong dollars at an average price of HK$7.85.
The currency regulatory authority swiftly moved to keep the currency in the preferred range and took action for the first time since 2023.
The HKMA move also pushed up the interbank rate, which pushed up mortgage rates in the city, dampening property stocks.
China Indexes and Stocks
The Hang Seng index decreased 0.5% to 24,357.56, and the mainland-focused CSI 300 index decreased 0.1% to 3,959.80.
Residential property developers declined after the HKMA's move pushed up mortgage rates.
China Vanke Co. Ltd. decreased 0.2% to HK $4.97, Longfor Group Holdings added 0.4% to HK $9.70, Henderson Land Development Co. Ltd. dropped 2.6% to HK $28.0, and Sun Hung Kai Properties Ltd. fell 2.4% to HK $90.75.
Three companies listed their shares on the Hong Kong Stock Exchange amid strong interest from retail investors.
Eternal Beauty Holdings dropped 10% to HK$2.57, and the maker of personal care products sold 333.4 million shares at a price of HK$2.88 per share and raised HK$960.2 million.
Zhou Liu Fu Jewellery soared 17% to HK $27.60 after the company priced its offering at HK $24.0 per share.
The jewelry company sold 53.83 million shares and raised a total of HK $1.29 billion.
Saint Bella jumped more than 35% to HK $9.0 after the maker of child and elderly care products priced its public offering at HK $6.58 per share.
The company sold 109.7 million shares in a global offering and raised a total of HK $722.04 million.
HKMA Defends Currency Peg, Three New Issues Start Trading on Hong Kong Exchange
Li Chen
26 Jun, 2025
Hong Kong
China and Hong Kong stock market indexes lacked direction amid heightened geopolitical tensions and a lack of progress on U.S. tariff negotiations.
The Hang Seng index fell 0.5%, and the mainland-focused CSI 300 index decreased a fraction, as investors focused on multiple headwinds, including U.S. tariff negotiations.
Negotiations with the U.S. have stalled over the last week as China pushes for lower tariffs, and the U.S. demands a stable supply of rare earth materials.
In Hong Kong, the movement in the currency market also garnered investor attention, as the Hong Kong Monetary Authority moved to keep the exchange rate within the target band.
The HKMA sold the equivalent of US$1.2 billion and purchased Hong Kong dollars at an average price of HK$7.85.
The currency regulatory authority swiftly moved to keep the currency in the preferred range and took action for the first time since 2023.
The HKMA move also pushed up the interbank rate, which pushed up mortgage rates in the city, dampening property stocks.
China Indexes and Stocks
The Hang Seng index decreased 0.5% to 24,357.56, and the mainland-focused CSI 300 index decreased 0.1% to 3,959.80.
Residential property developers declined after the HKMA's move pushed up mortgage rates.
China Vanke Co. Ltd. decreased 0.2% to HK $4.97, Longfor Group Holdings added 0.4% to HK $9.70, Henderson Land Development Co. Ltd. dropped 2.6% to HK $28.0, and Sun Hung Kai Properties Ltd. fell 2.4% to HK $90.75.
Three companies listed their shares on the Hong Kong Stock Exchange amid strong interest from retail investors.
Eternal Beauty Holdings dropped 10% to HK$2.57, and the maker of personal care products sold 333.4 million shares at a price of HK$2.88 per share and raised HK$960.2 million.
Zhou Liu Fu Jewellery soared 17% to HK $27.60 after the company priced its offering at HK $24.0 per share.
The jewelry company sold 53.83 million shares and raised a total of HK $1.29 billion.
Saint Bella jumped more than 35% to HK $9.0 after the maker of child and elderly care products priced its public offering at HK $6.58 per share.
The company sold 109.7 million shares in a global offering and raised a total of HK $722.04 million.
Wall Street Indexes Approach Record Highs Despite Looming Tariff Uncertainties and Persistent Inflationary Pressures
Barry Adams
25 Jun, 2025
New York City
Wall Street indexes lacked direction after racking up gains in the previous session.
The S&P 500 index edged down 0.1%, and the tech-heavy Nasdaq Composite inched higher 0.2%, and crude oil prices rebounded after falling more than 10% in the previous two sessions.
Benchmark indexes are approaching record highs as investors overlook multiple headwinds ahead of the start of earnings season in two weeks and optimism about a possible rate cut.
The S&P 500 index has rebounded more than 20% from the low of 4,982.0 on April 8, despite the ongoing uncertainty linked to Trump tariffs, lack of progress on the budget bill in the Senate, possible rebound in consumer price inflation, and ongoing geopolitical tensions in the Middle East and Central Europe.
Moreover, a sharp slowdown in retail sales is confirming consumer fatigue, and higher prices for automobiles and food and the sustained inflation in shelter costs are weakening consumer confidence.
Since the start of Trump's global tariff war, small businesses in logistics, retailing, entertainment, restaurants, and business services are facing tough times amid a lack of demand and a freezing of new investments.
Commodities, Currencies, Indexes, Yields
The S&P 500 index increased 0.1% to 6,098.94, the Nasdaq Composite edged up 0.4% to 20,000.74, and the Russell 2000 index declined 0.2% to 2,157.31.
The yield on 2-year Treasury notes edged lower to 3.81%, 10-year Treasury notes increased to 4.33%, and 30-year Treasury bonds advanced to 4.87%.
WTI crude oil increased $0.61 to $64.98 a barrel, and natural gas prices edged lower by $0.04 to $3.50 a thermal unit.
Gold decreased by $8.92 to $3,314.16 an ounce, and silver edged down by $0.12 to $35.80.
The dollar index, which weighs the US currency against a basket of foreign currencies, increased by 0.26 to 98.12 and traded at the lowest level since April 2022.
U.S. Stock Movers
FedEx Corporation decreased 4.4% to $218.20 after the parcel delivery company's current quarter outlook fell short of analysts' expectations.
The logistics company guided first-quarter revenue to be between flat and up 2%, compared to $21.6 billion, and diluted earnings per share to be between $2.90 and $3.50, compared to $3.60 a year earlier, respectively.
FedEx's revenue and earnings surpassed market expectations in the fiscal fourth quarter ending in May.
AeroVironment, Inc. rose 2.2% to $197.65, and the defense technology company reported better-than-expected results in the fiscal fourth quarter ending in April.
The company estimated earnings per share in the current fiscal year to range between $2.80 and $3.0, compared to $3.28 a year ago.
Worthington Enterprises soared 11.4% to $67.0 after the industrial products, such as pressure vessels, reported better-than-expected revenue and adjusted earnings in the fiscal fourth quarter ending in May.
Carnival Corp. jumped 0.4% to 25.79 after the cruise operator reported an increase in revenue and earnings in the fiscal second quarter ending in May and raised its full-year outlook.
Chief Executive Josh Weinstein said strong last-minute bookings, close to departure, supported the rise in revenue in the quarter.
Wall Street Indexes Approach Record Highs Despite Looming Tariff Uncertainties and Persistent Inflationary Pressures
Barry Adams
25 Jun, 2025
New York City
Wall Street indexes lacked direction after racking up gains in the previous session.
The S&P 500 index edged down 0.1%, and the tech-heavy Nasdaq Composite inched higher 0.2%, and crude oil prices rebounded after falling more than 10% in the previous two sessions.
Benchmark indexes are approaching record highs as investors overlook multiple headwinds ahead of the start of earnings season in two weeks and optimism about a possible rate cut.
The S&P 500 index has rebounded more than 20% from the low of 4,982.0 on April 8, despite the ongoing uncertainty linked to Trump tariffs, lack of progress on the budget bill in the Senate, possible rebound in consumer price inflation, and ongoing geopolitical tensions in the Middle East and Central Europe.
Moreover, a sharp slowdown in retail sales is confirming consumer fatigue, and higher prices for automobiles and food and the sustained inflation in shelter costs are weakening consumer confidence.
Since the start of Trump's global tariff war, small businesses in logistics, retailing, entertainment, restaurants, and business services are facing tough times amid a lack of demand and a freezing of new investments.
U.S. Stock Movers
FedEx Corporation decreased 4.4% to $218.20 after the parcel delivery company's current quarter outlook fell short of analysts' expectations.
The logistics company guided first-quarter revenue to be between flat and up 2%, compared to $21.6 billion, and diluted earnings per share to be between $2.90 and $3.50, compared to $3.60 a year earlier, respectively.
FedEx's revenue and earnings surpassed market expectations in the fiscal fourth quarter ending in May.
AeroVironment, Inc. rose 2.2% to $197.65, and the defense technology company reported better-than-expected results in the fiscal fourth quarter ending in April.
The company estimated earnings per share in the current fiscal year to range between $2.80 and $3.0, compared to $3.28 a year ago.
Worthington Enterprises soared 11.4% to $67.0 after the industrial products, such as pressure vessels, reported better-than-expected revenue and adjusted earnings in the fiscal fourth quarter ending in May.
Carnival Corp. jumped 0.4% to 25.79 after the cruise operator reported an increase in revenue and earnings in the fiscal second quarter ending in May and raised its full-year outlook.
Chief Executive Josh Weinstein said strong last-minute bookings, close to departure, supported the rise in revenue in the quarter.