What started as a quiet week took a sharp turn on Friday after Israel’s nighttime attack on Iran. Here’s a breakdown of the three key themes that influenced the market this week. 1. Geopolitics: The strike on Iran’s nuclear facilities sent shockwaves through the financial markets on Friday. U.S. stocks experienced a decline amid rising international tensions, with the S&P 500 falling by 1.13% and the Nasdaq Composite by 1.3%. In contrast, Brent and West Texas Intermediate crude futures increased by approximately 7% and 7.5%, respectively. Gold prices climbed to a two-month high as investors sought safety from market volatility. Prior to the attack, stock benchmarks appeared set for a positive close for the week, but by the end, the S&P 500 and Nasdaq had slipped 0.4% and 0.6%, respectively, breaking their consecutive weekly winning streaks. Although the U.S. dollar index gained slightly on Friday, it faced challenges throughout the week. On Thursday, we discussed how long-term investors might interpret the weaker dollar. Additionally, a significant geopolitical development occurred with U.S. and Chinese representatives announcing an agreement on a trade-deal framework, particularly regarding rare-earth minerals. 2. Economic data: Investors were greeted with encouraging news on inflation on Wednesday and Thursday. The consumer price index, which tracks inflation for goods and services in the U.S., revealed that core prices rose less than anticipated last month. Furthermore, Thursday’s producer price index, which measures wholesale inflation, was also lower than expected. The job market showed signs of slowing but remained stable, with weekly jobless claims unchanged for the week ending June 7 and continuing claims still hitting multiyear highs. Overall, the economic data suggested a cooling rate of inflation while unemployment stayed low, enhancing consumer purchasing power. 3. AI updates: This week was packed with company-specific developments in the race for generative artificial intelligence. AI continues to be a crucial factor influencing financial markets. Apple hosted its annual developer conference on Monday, which, despite low expectations, left some disappointed due to a lack of AI advancements. In contrast, Meta Platforms generated excitement with news of a significant investment in Scale AI and plans to integrate the startup’s CEO to spearhead a new “superintelligence” unit aimed at developing artificial general intelligence. Early Wednesday, Nvidia’s CEO Jensen Huang spoke at the company’s GTC event in Paris, reiterating that there is much more computing capacity to build, driven by demand from large tech customers and government entities. He projected that Europe will likely experience a tenfold increase in compute capacity over the next two years. Other companies like Oracle and Advanced Micro Devices also made headlines in the AI sector. Oracle’s stock surged on Thursday after reporting stronger-than-expected quarterly results, and it continued to climb on Friday despite a broader market decline, marking its most successful week since 2021. BMO Capital raised its rating on Oracle to “buy,” with CEO Safra Catz noting increased demand for AI computing power. Oracle anticipates its cloud infrastructure revenue to grow by 70% year-over-year in fiscal 2026. Meanwhile, Advanced Micro Devices introduced a new AI server chip slated for 2026, striving to compete with Nvidia’s leading products, alongside announcing a new collaboration with OpenAI, the company behind ChatGPT. Although the chip won’t be available until 2026, the partnership highlights AMD’s ambition in the AI market. (Jim Cramer’s Charitable Trust holds positions in AAPL, META, and NVDA. Full details are available here.) Subscribers to the CNBC Investing Club with Jim Cramer will receive a trade alert prior to any stock transactions made by Jim. He waits 45 minutes after sending an alert before executing a trade and holds off for 72 hours if he has discussed the stock on CNBC TV. THIS INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, ALONG WITH OUR DISCLAIMER. NO FIDUCIARY OBLIGATION OR DUTY IS CREATED THROUGH YOUR RECEIPT OF ANY INFORMATION CONNECTED WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
“Market Movers: How Israel-Iran Tensions and Two Key Factors Shaped Stock Trends This Week”
By Press Room
SITE LINKS
© 2025 The Smart Times. All Rights Reserved.