Conflict Fears Rattle Markets; Fed Holds Steady
The Weekly Update
Week of June 23rd, 2025
By Christopher T. Much, CFP®, AIF®
Stocks were mixed during the holiday-shortened trading week as uncertainty over conflict in the Middle East weighed on investors.
The Standard & Poor’s 500 Index slipped by 0.15 percent, while the Nasdaq Composite Index rose by 0.21 percent. The Dow Jones Industrial Average was flat (+0.02 percent). The MSCI EAFE Index, which tracks developed overseas stock markets, declined 1.54 percent.
Stocks Rise, Then Slump
Stocks opened higher, and oil prices fell at the start of the week as investors hoped Middle Eastern tensions would ease.
However, as investors parsed through updates on the conflict, stocks fell over ongoing uncertainty. Conflicting statements from those involved, as well as from world leaders, contributed to the uncertainty.
Midweek, stocks rallied ahead of the Fed’s interest rate decision. Markets seemed to dismiss news that housing starts dropped unexpectedly to their lowest level in five years.
The Fed …