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Market Overview
The major U.S. stock indexes rebounded on Tuesday, June 17, 2025, following Monday’s selloff triggered by escalating tensions between Israel and Iran. The Dow Jones Industrial Average rose 0.75% to 42,515.09, while the S&P 500 advanced 0.94% to 6,033.11. The tech-heavy Nasdaq Composite showed the strongest performance, surging 1.52% to 19,701.21.
Investors appear to be cautiously optimistic despite President Trump’s urgent call for evacuations from Tehran and his early departure from the G7 summit due to the Middle East crisis. Fitch Ratings has indicated that the current level of conflict “appears to be within the range that can be absorbed at Israel’s ‘A’/Negative rating level,” suggesting limited economic impact if hostilities remain contained.
Premarket Movers
In premarket trading, Nvidia (NVDA) continues its positive momentum, building on Monday’s 2% gain as the chip giant trades above both its 50-day and 200-day moving averages. The company’s CEO Jensen Huang recently expressed confidence that President Trump will make favorable decisions regarding the U.S. AI industry, stating, “The president has a plan. He has a vision and I trust him.”
Tesla (TSLA) is facing pressure in premarket trading after Baird downgraded the stock from outperform to neutral on Monday. The electric vehicle manufacturer has struggled in 2025, with shares currently trading approximately 40% below their December 2024 all-time high of $488.53.
Amazon (AMZN) is showing strength in early trading, building on Monday’s gains when it hit a buy point of $214.84. The e-commerce and cloud computing giant has demonstrated resilience despite ongoing concerns about potential tariff impacts on its business operations.
Upcoming Market Events
All eyes are on the Federal Reserve, which is expected to maintain current interest rates at its upcoming meeting despite increasing pressure from President Trump to loosen monetary policy. The central bank faces a complex decision-making environment amid tariff-related uncertainty and rising geopolitical instability in the Middle East.
Oracle (ORCL) is scheduled to release its quarterly earnings after market close today, with analysts watching closely for signs of continued growth in its cloud business and potential guidance for fiscal 2026. The company has recently expressed optimism about its future prospects.
Energy and Commodities
Oil prices have surged following weekend attacks on energy infrastructure between Israel and Iran, with concerns mounting about potential disruptions to global supply chains. Iran has threatened to close the Strait of Hormuz—a critical chokepoint for global oil shipments—further intensifying market anxiety.
As of the latest trading session, crude oil was priced at $72.50 per barrel, while Brent crude traded at $73.73. Natural gas showed significant strength, rising 3.01% to $3.69.
International Markets
Asian markets traded mixed on Tuesday as investors continued to assess the Israel-Iran situation. Japan’s Nikkei 225 added 0.59% to close at 38,536.74 after the Bank of Japan maintained interest rates at 0.5%. Meanwhile, Hong Kong’s Hang Seng Index lost 0.34% to close at 23,980.30, and Australia’s S&P/ASX 200 ended flat at 8,541.30.
Investment bank Julius Baer has maintained its overweight stance on Indian equities, citing robust earnings and strong economic indicators. India’s Nifty 50 has risen 5.06% year-to-date, outperforming Japan’s Nikkei 225 which has fallen 3.97% during the same period.
Magnificent Seven Performance
The performance of the “Magnificent Seven” stocks has been mixed in 2025. While Meta Platforms (META) leads with a 19.2% gain and Microsoft (MSFT) follows with an 11.6% increase, Apple (AAPL) has struggled with an 18.6% decline. Tesla (TSLA) shows the weakest performance with a 26.9% drop year-to-date.
Apple (AAPL) is attempting to build momentum after recently moving above its 50-day moving average. The company reported better-than-expected results for its March quarter but continues to face challenges related to potential tariff impacts on hardware sales and legal cases affecting its services business.
Microsoft (MSFT) remains a market leader after crushing Wall Street’s expectations for its fiscal third quarter. The Redmond-based software giant reported earnings of $3.46 per share on sales of $70.07 billion, representing year-over-year growth of 18% and 13% respectively.
Market Outlook
Despite the rebound in major indexes, market participants remain cautious about several risk factors. The escalating Middle East conflict, potential changes in Federal Reserve policy, and ongoing trade tensions continue to create uncertainty.
According to Trading Economics models and analyst expectations, the U.S. Stock Market Index is projected to trade at 5,941.70 points by the end of this quarter, with a longer-term estimate of 5,837.10 in 12 months.
As geopolitical developments unfold and earnings season continues, investors will be closely monitoring corporate guidance and economic indicators for signs of resilience or vulnerability in the face of multiple global challenges.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.