The Dow Jones Industrial Average (^DJI) climbed 0.4%, while the S&P 500 (^GSPC) posted a modest 0.2% gain. In contrast, the Nasdaq Composite (^IXIC) dipped slightly below the flatline, reflecting cautious investor sentiment, especially in tech stocks.
Stocks slipped on Friday as investors digested geopolitical tensions, mixed economic signals, and rising trade risks. The S&P 500 fell 0.3% while the Nasdaq Composite shed 0.7%. The Dow Jones Industrial Average hovered near the flatline, adding just 0.2%.
Why are chip stocks under pressure again?
Tech stocks, especially semiconductors, were hit hard after a Wall Street Journal report revealed the US is considering revoking key waivers that allow global chipmakers to use American tech in China.
Nvidia (NVDA) slipped over 1%, while Lam Research (LRCX), Applied Materials (AMAT), TSMC (TSM), and Broadcom (AVGO) each dropped between 2% and 4%. The move signals a potential intensification in the US-China tech war, adding a fresh layer of uncertainty for the sector.
Circle extends rally on crypto optimism
Amid the market gloom, crypto firm Circle (CRCL) surged another 13% to trade near $227 following a 30% rally earlier in the week. The bullish momentum was fueled by the Senate’s passage of the GENIUS Act, laying a regulatory framework for stablecoins. Seaport Research Partners rated Circle a “Buy” with a $235 price target, calling it a top-tier disruptor poised to benefit from global stablecoin adoption.
Accenture, Kroger, CarMax in the earnings spotlight
Accenture (ACN) tumbled 6% as bookings fell 6% YoY to $19.7 billion, despite revenue and earnings beating estimates. The firm is grappling with slower federal contract activity under Trump’s spending cuts. Kroger (KR) jumped nearly 9% after raising its full-year sales outlook, though it kept profit guidance unchanged amid persistent consumer caution. CarMax (KMX) rallied over 6% following strong earnings and revenue growth, driven by a 5.8% jump in used car sales.
What’s the impact of ‘triple witching’ on stocks?
Wall Street is also bracing for potential volatility following today’s “triple witching” — the quarterly expiration of $6.5 trillion in stock options, index options, and futures contracts. While the event itself was relatively calm, it may open the door for sharper market swings next week as traders reset positions.
Key Market Movers (as of 11:15 AM ET):
S&P 500 (GSPC): -0.3% Nasdaq Composite (IXIC): -0.7% Dow Jones (DJI): +0.2% Crude Oil (CL=F): +0.16% to $75.26 Circle (CRCL): +13.63% to $226.76 Accenture (ACN): -6.05% Kroger (KR): +8.70% CarMax (KMX): +6.12%
Why is Trump’s two-week Iran deadline rattling investors?
President Trump has imposed a two-week window to decide whether the US will directly engage in the ongoing Israel-Iran conflict, as announced via the White House press secretary on Thursday. The market response to this geopolitical news was immediate, with investors growing uneasy over the potential for broader Middle East instability and its impact on oil prices, defense stocks, and global trade.
Although this deadline adds a layer of geopolitical pressure, it also offers a brief diplomatic window. European foreign ministers from France, the UK, and Germany are holding critical talks with Iranian officials in Geneva, hoping to convince Iran to return to negotiations. However, Iran’s president swiftly rejected any such efforts on Friday, dampening hopes for a quick resolution.
Could July be the turning point for Fed rate cuts?
Amid these global concerns, Federal Reserve Governor Chris Waller on Friday suggested that interest rate cuts as early as July are not off the table. Waller pointed to recent inflation data that appears relatively tame — even after Trump’s introduction of new tariffs — as a reason to consider easing policy.
Although the Federal Reserve chose to hold rates steady this week, Chair Jerome Powell emphasized a cautious approach, stating the central bank is “not rushing” to cut. This led President Trump to criticize the Fed again, highlighting the friction between the White House and monetary policymakers.
Waller’s remarks nudged up the market’s expectations for a rate cut in July, though according to CME Group data, most traders still believe a cut is more likely in September.
What does the market reaction say about investor sentiment?
The stock market’s mixed movement reflects a blend of optimism about potential rate cuts and fear over geopolitical escalation. The Dow’s rise suggests investors are leaning into more traditional, stable sectors, while the Nasdaq’s weakness shows caution in higher-risk tech names.
Market analysts say investors are balancing two key themes: one, the possibility of lower borrowing costs that could support growth and equity valuations; and two, the real-world risks of a US-Iran confrontation that could disrupt markets globally.
How are Trump’s tariffs influencing the Fed’s outlook?
Trump’s recent move to reintroduce tariffs on several key goods has created new complications for the Fed. While tariffs often stoke inflation, current data hasn’t shown a sharp uptick, giving the Fed more flexibility. That said, if trade tensions escalate or if tariffs weigh on consumer spending, the case for a rate cut could strengthen.
Waller highlighted that inflation indicators are “coming down slightly,” despite the added pressure from tariffs. This nuance could be a key part of the Fed’s July policy discussions — particularly if Trump’s foreign policy developments intensify economic uncertainty.
What should investors watch for next?
Looking ahead, markets will closely track: Any statements from the Trump administration regarding the Iran deadline Progress in the European diplomatic talks with Iran Key economic data releases including inflation and jobless claims Comments from other Fed officials, which may further guide rate expectations With the Middle East situation evolving and economic policy still in flux, volatility could remain elevated in the short term.
As the US stock market today reacts to President Trump’s Middle East stance and hints of a July Federal Reserve interest rate cut, investors are navigating a delicate balance of political risk and economic hopes. With fresh diplomatic efforts underway and the Fed keeping all options open, the next two weeks could be pivotal in shaping market direction.
FAQs:
Q1. What did President Trump announce about the US-Iran conflict?
A1. He set a two-week deadline to decide on possible US military action.
Q2. Will the Federal Reserve cut interest rates in July?
A2. Fed officials hinted it’s possible if inflation stays low.
