June 19th, 2025
The market is closed today in honor of Juneteenth.
Equity futures declined amid rising speculation that the U.S. may directly back Israel in its conflict with Iran. White House Press Secretary Karoline Leavitt announced that President Trump would decide on potential military action within the next two weeks.
S&P 500 futures slipped 0.9% during a session when U.S. stock and Treasury markets were closed for a public holiday. Europe’s Stoxx 600 fell 0.8%, marking its third consecutive decline, while Asian markets dropped 1.4%.
West Texas Intermediate rose 0.5% to $75.60 a barrel, and Brent crude climbed above $78
Economic Takeaways:
- The Bank of England kept its benchmark rate on hold at 4.25%.
- The Swiss National Bank cut its interest rate to zero.
Stocks
- S&P 500 futures fell 0.9% as of 1:58 p.m. New York time
- The MSCI World Index fell 0.3%
- Nasdaq 100 futures fell 1.1%
- The MSCI Asia Pacific Index fell 1.4%
- The MSCI Emerging Markets Index fell 1.3%
- S&P/BMV IPC fell 1.1%
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro was little changed at $1.1481
- The British pound rose 0.2% to $1.3455
- The Japanese yen fell 0.2% to 145.48 per dollar
- The offshore yuan rose 0.1% to 7.1864 per dollar
- The Mexican peso fell 0.3% to 19.0659
Cryptocurrencies
- Bitcoin fell 0.3% to $104,551.01
- Ether fell 0.8% to $2,508.50
Bonds
- The yield on 10-year Treasuries was little changed at 4.39%
- Germany’s 10-year yield advanced two basis points to 2.52%
- Britain’s 10-year yield advanced four basis points to 4.53%
Commodities
- West Texas Intermediate crude rose 0.6% to $75.60 a barrel
- Spot gold was little changed
President Trump Goes After Jerome Powell
President Donald Trump on Thursday escalated his pointed criticism of Federal Reserve Chair Jerome Powell, urging an unprecedented 2.5 percentage point cut to interest rates. “‘Too Late’ Jerome Powell is costing our Country Hundreds of Billions of Dollars,” Trump wrote on Truth Social. “He is truly one of the dumbest, and most destructive, people in Government, and the Fed Board is complicit.”
“TOO LATE’s an American Disgrace!” he added.
Such a dramatic rate cut would break with decades of Federal Reserve policy. The central bank typically adjusts interest rates in quarter-point increments, carefully aligning changes with current economic conditions. In 2022, for instance, the Fed raised rates by up to 0.75 percentage points to combat surging inflation. Likewise, during the early days of the pandemic, the Fed slashed rates quickly to support the economy.
Powell has declined to directly respond to Trump’s attacks, emphasizing instead the Fed’s dual mandate to keep inflation in check and foster employment. When asked about Trump’s stated intention to nominate a new Fed chair when Powell’s term ends next year, Powell maintained that his focus remains on the current economic landscape.
“From my standpoint, it’s not complicated,” Powell explained. “What everyone on the [Federal Open Market Committee] wants is a good, solid American economy with strong labor market and price stability. That’s what we want. Our policy is well positioned right now to deliver that.”
“America’s economy has been resilient,” Powell added. “Part of that is our stance. We think we’re in a good place on that, to respond to significant economic developments. That’s what matters. That is what matters to us. Pretty much that’s all that matters to us.”
What will President Trump do about Iran?
President Trump approved military strike plans against Iran on Tuesday night but has not yet made a final decision on whether to proceed with an attack or formally join Israel’s ongoing air campaign, according to a senior intelligence official and a Defense Department source who spoke to CBS News.
Sources indicated the president is holding off in hopes that Tehran might still agree to abandon its nuclear ambitions.
White House Press Secretary Karoline Leavitt said Trump expects to make a decision within the next two weeks.
“Based on the fact that there is a substantial chance of negotiations that may or may not take place with Iran in the near future, I will make my decision whether or not to go within the next two weeks,” Mr. Trump said in a statement read by Leavitt at the White House press briefing.
“If the US does strike, you’re going to see a big knee-jerk reaction,” said Neil Wilson, investor strategist at Saxo UK. “No one will be wanting to make big long bets.”
The odds for the US to become involved are “quite high at this moment in time,” said Anna Rosenberg, head of geopolitics at Amundi Investment Institute.
“For the US, this is a moment to take out a big geopolitical headache, which is Iran potentially developing a nuclear weapon,” Rosenberg told Bloomberg TV. “Having said that, acting comes with a lot of consequences too. Trump will have to make a really difficult decision.”
TikTok is Saved Again for Now
President Donald Trump has granted a third extension to TikTok’s parent company, ByteDance, giving the Chinese firm more time to sell the popular short-form video app to a U.S.-based buyer.
On Thursday, Trump signed an executive order allowing ByteDance additional time to complete the sale, a move aimed at ensuring TikTok can continue operating in the United States.
What’s Ahead
June 20: May leading economic indicators due, along with earnings reports from Accenture (ACN), CarMax (KMX), Darden Restaurants (DRI), and Kroger (KR).
June 23: May existing home sales data and earnings from KB Home (KBH).
June 24: June Consumer Confidence report and earnings from FedEx (FDX).
June 25: May new home sales figures and earnings from Micron Technology (MU).
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