NEW YORK — Following the Juneteenth holiday, U.S. stock markets saw a mixed finish on Friday as trading resumed with little fanfare. The S&P 500 recorded a 0.2% drop, marking the second consecutive week of slight declines. In contrast, the Dow Jones Industrial Average rose by 35 points, or 0.1%, while the Nasdaq composite decreased by 0.5%.
Treasury yields remained relatively stable in the bond market after statements from President Donald Trump indicating an impending decision on U.S. military involvement in the Israel-Iran situation. This development opens the door to potential diplomatic negotiations over Iran’s nuclear program, aiming to avert further conflict. The ongoing tensions have caused fluctuations in oil prices over the past week, reflecting investor concerns about potential disruptions to the global crude supply, with Iran being a significant oil producer and controlling the Strait of Hormuz, through which much of the world’s oil supply is transported.
“We’re all waiting on pins and needles to see what happens with the Israel-Iran situation,” noted Brian Jacobsen, chief economist at Annex Wealth Management. “These types of situations can stress markets, but often the best way to manage that stress is to just ride through it and not try to trade it.”
On Wall Street, Kroger shares surged 9.8% following a quarterly profit report that exceeded Wall Street expectations, alongside an optimistic upward revision of its revenue forecast for the year. Yet, Chief Financial Officer David Kennerley acknowledged that despite positive momentum, the economic environment remains uncertain.
CarMax also experienced gains, with shares climbing 6.6% after reporting better-than-expected quarterly profits and a year-over-year increase of nearly 6% in used vehicle sales.
Conversely, Smith & Wesson Brands faced a steep decline, with shares dropping 19.8% due to quarterly profit and revenue falling just short of analyst predictions. CFO Deana McPherson attributed the downturn to “persistent inflation, high interest rates, and uncertainty caused by tariff concerns,” which have adversely affected firearm sales. The company anticipates similar demand trends in the coming fiscal year, contingent on future inflation and tariff developments.
In summary, the S&P 500 closed at 5,967.84, down 13.03 points. The Dow Jones Industrial Average rose 35.16 points to 42,206.82, whereas the Nasdaq declined by 98.86 points to 19,447.41.
Many companies are revising or retracting their financial projections for 2025 due to the uncertainties stemming from tariff impacts on both customers and suppliers. There is widespread anticipation regarding whether President Trump will reach trade agreements with other nations to potentially reduce tariffs on imports, many of which are presently paused.
This uncertainty extends to the Federal Reserve, which has maintained its primary interest rate constant this year, including its most recent decision earlier this week. The Fed seeks additional data to assess the economic impact of tariffs and their influence on inflation.
In the bond market, Treasury yields showed minimal movement. The yield on the 10-year Treasury slightly decreased to 4.37% from 4.38%, while the two-year yield fell from 3.94% to 3.90%, reflecting closer alignment with Federal Reserve expectations.
Global stock markets also displayed mixed results, with various indices in Europe and Asia exhibiting diverse performances. In Tokyo, the Nikkei 225 index fell by 0.2% as Japan reported a core inflation rate increase, excluding food prices, to 3.7% in May, presenting challenges for Prime Minister Shigeru Ishiba’s administration and the central bank.