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Market Wrap
Ceasefire Cheers, But Confidence Slips
Trump Claims Ceasefire in Middle East:
President Trump announced a ceasefire between Israel and Iran, reducing geopolitical uncertainties. Investors cheered the agreement which alleviated fears of oil supply disruptions. This sparked a sharp drop in oil prices (~6% decline) and fueled gains across U.S. indices—S&P 500 (+1.1%), Dow (+1.2%), Nasdaq (+1.5%)—pushing them toward all-time highs.
Consumer Confidence Weakens:
The Conference Board’s Consumer Confidence Index fell by 5.4 points to 93.0 in June—the lowest since May 2020—signaling increased household worries about jobs and tariffs. The decline suggests possible headwinds for consumer spending going forward.
Trump Calls for Sharp Rate Cuts:
President Trump publicly urged that interest rates be lowered by “at least two to three percentage points,” putting fresh pressure on the Federal Reserve ahead of Chair Powell’s congressional testimony.
Fed Chair Jerome Powell Emphasized Caution:
During his congressional testimony on June 24, Powell reinforced that the Fed remains in a “wait-and-see” mode, delaying any rate cuts until clearer evidence on inflation (especially tariff-driven) emerges. He ruled out a July rate cut and reiterated that decisions will rely strictly on economic data, not political pressure.
NATO Summit in The Hague:
World leaders—including President Trump—gathered at the NATO summit (June 24–25). Although no major policy decisions emerged yet, market watchers are monitoring geopolitical rhetoric for implications on trade alliances and defense spending.
Exxon Mobil Corp. shares dropped as oil prices tumbled nearly 6% following easing tensions in the Middle East due to a ceasefire between Israel and Iran, which reduced risk premia and weighed on energy sector sentiment.
Uber Technologies Inc. shares jumped ~7.5% as the company launched autonomous ride services in Atlanta, marking a key milestone in its push toward driverless mobility.
Coinbase Global Inc. shares soared ~12.1% following Bitcoin’s rally above $105,000, highlighting renewed enthusiasm in the crypto market boosting the exchange’s growth prospects.
FedEx Corp. shares fell 6% in after-hours trading after the company issued a cautious profit outlook for the current quarter, citing a volatile global demand environment and expressing uncertainty over the impacts of new tariffs—raising red flags about future volume and margin trends.
