Market Recap – Wednesday, June 18, 2025
US stocks were mixed today, with the Dow up slightly by 0.10% and the S&P 500 barely changed at +0.03%. The Nasdaq rose by 0.13%, while the Russell 2000, which tracks smaller companies, saw a bigger jump of 0.52%. Overall, the market was choppy, and stocks closed off their best levels of the day.
Key Market Sectors:
Winners: Crypto stocks surged, especially after news about stablecoin legislation. Banks, investment banks, internet companies, cruise lines, and building materials also performed well.
Laggards: Payment processors, energy stocks, department stores, athletic apparel, casual dining, chemicals, aluminum, and China-based tech companies struggled.
Other Market Factors:
Treasuries: Bond prices remained little changed.
Dollar and Gold: The dollar rose by 0.1%, while gold saw a small uptick, finishing slightly higher.
Oil: WTI crude oil was up by 0.3%, despite ongoing Middle East tensions.
Geopolitical and Economic News:
There weren’t any major directional drivers today, but the market remains sensitive to developments in the Middle East. Tensions are still high, and there’s ongoing uncertainty about whether the US military will get involved. On the economic front, the Federal Reserve kept interest rates unchanged, as expected, but there were some mixed signals in their updated forecast. The Fed lowered its growth estimate for 2025 and raised its inflation outlook, but they also said that uncertainty about the economy has lessened, though it’s still high.
Other data today showed that US jobless claims were better than expected, though housing starts in May dropped by 9.3%, missing expectations. Building permits also fell, signaling continued challenges in the housing market.
Corporate News:
Meta (GOOGL): Reported making huge compensation offers to OpenAI employees as it builds a leading AI team.
Coinbase (COIN): Rose after news about stablecoin legislation updates and the launch of Coinbase Payments.
Marvell Technology (MRVL): Saw a boost after positive updates from their AI event, highlighting strong growth in their data center business.
Notable Stock Moves:
Circle Internet (CRCL): Jumped 33.8% after the Senate passed the GENIUS Act, which creates a framework for stablecoin regulation.
Coinbase (COIN): Gained 16.3% following updates to stablecoin legislation and the introduction of its new payment product.
GMS Inc. (GMS): Rose 10.6% after its quarterly earnings beat expectations, and the company remains optimistic about future demand.
Marvell Technology (MRVL): Also up 7.1%, with positive forecasts for its AI-driven growth.
Decliners:
Biomea Fusion (BMEA): Dropped 34.1% after a stock offering.
Zoetis (ZTS): Fell 4.1% after being downgraded due to growing competitive pressures.
UBS Group (UBS): Dropped 2.6% after a downgrade, with expectations of lower capital returns.
Steel Dynamics (STLD): Fell 2.3% after a weaker-than-expected earnings forecast.
Asian Market Outlook:
Asian markets are expected to open lower, with futures signaling declines in Japan, Hong Kong, and Australia. Crude oil prices continue to rise amid the ongoing geopolitical risks in the Middle East.
Here's Our Take
Today’s market was a mixed bag, with choppy trading driven by ongoing geopolitical concerns in the Middle East and economic data that painted a somewhat uncertain picture. While some sectors like crypto, banks, and cruise lines showed strength, the broader market remains cautious with ongoing volatility. The Fed’s decision to keep interest rates unchanged provided little surprise, but their lowered growth expectations and higher inflation forecasts indicate potential challenges ahead. The housing market also showed signs of strain, with weaker-than-expected housing starts and building permits. While the market seems resilient, we should remain mindful of potential risks as geopolitical tensions and economic uncertainty continue to weigh on sentiment.
P.S. Know someone who'd appreciate smarter stock insights and clearer investing strategies? Forward this email or share this link: subscribe.triplegains.com