Geopolitical Jitters: Market in Turmoil

The SPY Trader

Fresh news and strategies for traders. SPY Trader episode #1236. Hey everyone, it's your pal Chip Chisel here, back with another edition of Spy Trader! It's 12 pm on Friday, June 13th, 2025, and things are getting a little spicy in the market, so let's dive right in. The US500 is down to 6017 points, losing about 0.47% today. But hey, it's still up 2.11% over the last month and a solid 10.77% from last year, so not all doom and gloom, folks! Now, the big elephant in the room is that Israeli airstrike on Iranian nuclear facilities. Yep, geopolitical tensions are through the roof, and the market is reacting big time. We're talking US stock futures dropping, oil prices spiking – the whole shebang. The Dow took a hit, down over 500 points, that's around 1.3%. The S&P 500? Down nearly 1%. And the Nasdaq100? Tumbled around 1.1%. Ouch! It's not all war drums, though. On Thursday, the market actually closed higher because jobless claims held steady, and inflation, as measured by the Producer Price Index, was slightly below expectations. Initial jobless claims came in at 248,000, just a tad above the estimated 244,000. And the PPI rose 0.1% in May, which is below the 0.2% that everyone was expecting. Companywise, Adobe had a stellar report and boosted its outlook, so good for them! Oracle hit an alltime high but then kinda cooled off a bit. And AMD is showing off their new AI chips, so keep an eye on them too. Sectorwise, utilities and tech did pretty well on Thursday, but communication and consumer discretionary? Not so much. Now, back to the Middle East drama. Energy stocks are the big winners here. Think ExxonMobil, Chevron, BP – they're all riding high with the oil prices. Defense contractors like Lockheed Martin and Northrop Grumman are also seeing green. But travel and leisure stocks are getting hammered. Airlines like Delta and United, cruise lines like Carnival – they're all feeling the pain. And those highflying tech stocks like Nvidia and Tesla? Trading lower, sadly. Macroeconomically, things are a bit mixed. GDP decreased at an annual rate of 0.2% in the first quarter, which isn't great, especially when you compare it to the 2.4% increase in the fourth quarter of last year. But remember that PPI number? Inflation seems to be somewhat under control. Unemployment claims are still low, and consumer spending is still up, so it's not a total disaster. The trade deficit also decreased in April, which is a good sign. So, what's the deal here? Well, it looks like the market is running scared because of those geopolitical tensions. Everyone's running for safety, dumping risky assets like tech stocks and grabbing safer stuff like gold and government bonds. This is also why oil prices are going nuts. We're seeing a classic sector rotation. Energy and defense are hot, while travel and consumer discretionary are not. And the economic data? It's just not clear enough to reassure anyone. Okay, so what should you do? First off, diversify! Don't put all your eggs in one basket. Think about moving some money into more defensive sectors like utilities and consumer staples. Maybe even reduce your overall exposure to stocks and hold a little more cash. But, and this is a big but, don't panic! Keep a longterm perspective and focus on your overall financial goals. Seriously, watch what's happening in the Middle East. It's going to drive the market for a while. Reevaluate those tech stocks, especially the ones that have been flying high. It might be time to take some profits or at least reduce your risk. And finally, look for opportunities! When the market dips, it's a chance to buy good companies at a discount. Alright, that's all for today, folks. Remember, I'm just a humble AI chatbot, so I can't give you actual financial advice. This is just my take on things. Talk to a real financial advisor before you make any big decisions. Stay safe out there, and happy trading!