Introduction#
As U.S. markets prepare to open on Friday, June 13, 2025, investors are digesting a modestly higher close on Wall Street alongside renewed geopolitical jitters in the Middle East and fresh commentary on U.S. tariffs. According to Monexa AI, the S&P 500 closed at 6045.26 (+0.38%), the Dow at 42967.62 (+0.24%), and the Nasdaq at 19662.48 (+0.24%) on Thursday. Overnight, reports of an Israeli strike on Iranian facilities and Iran’s counter-drone attack have rattled futures, while commentary on new 55% China tariffs from MarketWatch and rising household energy bills from the WSJ underscore the complex backdrop.
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Market Overview#
Yesterday’s Close Recap#
Thursday’s rally was broad-based, led by defensive Utilities and Energy sectors as investors sought refuge amid unclear U.S.–China trade signals and Middle East volatility. The S&P 500’s gain to 6045.26 outpaced its 50-day average of 5661.69 and reclaimed its 200-day average of 5804.79 amid higher volume, according to Monexa AI. The Dow’s 101.84-point advance to 42967.62 was buoyed by Chevron’s modest uptick, while the Nasdaq’s tech-led push to 19662.48 reflected strength in software names.
| Ticker | Closing Price | Price Change | % Change |
|---|---|---|---|
| ^SPX | 6045.26 | +23.02 | +0.38% |
| ^DJI | 42967.62 | +101.84 | +0.24% |
| ^IXIC | 19662.48 | +46.61 | +0.24% |
| ^NYA | 20199.49 | +80.40 | +0.40% |
| ^RVX | 22.59 | +0.12 | +0.53% |
| ^VIX | 20.04 | +2.02 | +11.21% |
Treasury yields slipped as equities rallied, but the VIX spiked more than 11%, highlighting persistent risk aversion. Strong earnings from ORCL and UNH offset profit-taking in speculative shares such as COIN and TSLA.
Overnight Developments#
Asia and Europe closed mixed as geopolitical risk resurfaced following reports that Iran launched more than 100 drones at Israel (CNBC), marking the largest military escalation since the 1980s. U.S. futures opened down over 1.5% before a late tilt higher trimmed losses, while Brent crude rose as much as 7% to above $78 a barrel (Forbes).
Meanwhile, trade-war tensions resurfaced after MarketWatch highlighted that the anticipated consumer-price impact from newly imposed tariffs remains subdued. A separate analysis from Reuters noted that algorithmic hedge funds are underperforming more nimble macro strategies amid policy whipsaws.
Macro Analysis#
Economic Indicators to Watch#
Investors will track Friday’s preliminary May U.S. Consumer Price Index, due at 8:30 a.m. ET, for signs of emerging inflation pressures from tariffs and energy costs. The University of Michigan consumer sentiment index, also out this morning, may reveal how higher residential power bills—expected to rise 4% this summer per the WSJ—are weighing on household spending plans. Any upside surprise in CPI could delay Fed rate-cut expectations for 2025, while a softer print would reinforce the central bank’s patient stance.
Global/Geopolitical Factors#
Escalating Israel-Iran hostilities have injected a fresh risk premium into oil markets and equity volatility, overshadowing trade-war debates for the moment. OPEC+ production will be watched closely if the Strait of Hormuz is threatened, given its role in 20–30% of global oil flows. Meanwhile, the G7 Finance Ministers’ meeting next week in Paris may produce coordinated statements on trade and monetary policy, but for now investors appear focused on real-time conflict developments rather than protracted tariff debates.
Sector Analysis#
Sector Performance Table#
| Sector | % Change (Close) |
|---|---|
| Utilities | +2.54% |
| Energy | +1.29% |
| Technology | +0.81% |
| Basic Materials | +0.55% |
| Consumer Defensive | +0.47% |
| Healthcare | +0.44% |
| Financial Services | +0.37% |
| Industrials | +0.31% |
| Real Estate | +0.31% |
| Consumer Cyclical | -0.03% |
| Communication Services | -0.20% |
Utilities led the advance, driven by VST (+4.24%) and CEG (+2.80%), as investors sought defensive yield amid rising rates and inflation concerns. Energy outperformed after crude spiked, lifting EQT (+2.87%) and APA (+1.73%). The Technology sector’s modest gain reflected mixed performance: ORCL surged 13% on upgraded guidance, while AMD slipped 2.18% on profit-taking. Communication Services lagged, with WBD down 3.33% and GOOG down 1.02% amid advertising-spend worries.
Company-Specific Insights#
Earnings and Key Movers#
Oracle (ORCL) led the market rally, jumping 13.31% after raising its 2026 revenue forecast to at least $67 billion, driven by 62% cloud-infrastructure growth and a 41% rise in performance obligations. Fabrinet (FN) followed with a 5.66% gain after Rosenblatt raised its price target to $290, citing optical growth tied to AI-data infrastructure. Conversely, Oxford Industries (OXM) plunged 13.91% after weak Q1 EPS guidance overshadowed a modest revenue beat. America’s Car-Mart (CRMT) fell 13.40% despite a Q4 EPS beat, reflecting consumer caution. Among energy plays, Global Partners (GLP) rose 4.09% on an upsized senior-notes offering, while Oklo (OKLO) dipped 5.22% amid share dilution following its public offering. Jabil (JBL) advanced 0.36% ahead of its Q3 FY’25 results next Tuesday.
Conclusion#
Morning Recap and Outlook#
As the bell approaches, the interplay of yesterday’s earnings surprises, overnight geopolitical risks and renewed tariff debates sets a cautiously optimistic tone. Investors should watch S&P futures for further conflict-driven swings, track Friday’s CPI print for Fed-policy signals and monitor oil prices for inflationary impact. Defensive Utilities and Energy remain in favor amid persistent volatility, while select Tech and healthcare calls—anchored by robust AI and cloud narratives—offer targeted growth exposure.
Key Takeaways and Implications:
Investors face a delicate balance between growth in AI-cloud leaders like Oracle and Fabrinet, and safety-seekers in Utilities and Energy amid geopolitical tensions. Emerging tariff pressures and rising utility costs warrant close monitoring of consumer sentiment and inflation data. Sector rotations may intensify as market participants weigh corporate guidance against macro uncertainties. Diversification across defensive yield, secular growth in tech/cloud, and strategic energy positions will be critical in navigating today’s open and beyond.