Weekly Stock Market Recap: June 6-13, 2025
The week of June 6-13, 2025, brought a mix of optimism and challenges to both domestic and international markets, with significant movements in equities and fixed income. This recap dives into the key events that shaped market performance, offering insights for investors, including Plan Administrators focused on 401k benchmarking, to navigate these dynamic conditions.
US Stock Markets: A Week of Volatility
The US stock market experienced a rollercoaster week, ending with modest declines across major indices. According to Edward Jones, the S&P 500 fell by 0.4%, the Dow Jones Industrial Average by 1.3%, and the Nasdaq Composite by 0.6% for the week. The S&P 500 closed at 5,976.97 on June 13, as reported by the Federal Reserve Bank of St. Louis.
The week began with a surge of optimism following the release of a robust US jobs report on June 6. The Bureau of Labor Statistics reported 139,000 jobs added in May 2025, surpassing the Dow Jones estimate of 125,000, with the unemployment rate steady at 4.2%. This signaled economic resilience, pushing the S&P 500 to 6,000 points for the first time since February, as noted by Investopedia. Sectors like technology and industrials saw gains, reflecting confidence in economic growth.
Mid-week, progress in US-China trade negotiations provided further support. On June 10, negotiators in London reached an agreement in principle to resolve trade disputes, easing fears of a trade war, according to Reuters. This lifted market sentiment, with the S&P 500 rising 0.6% to 6,038.81 and the Nasdaq gaining 0.3%, as reported by Investopedia. Companies like Tesla and Intel led the gains, benefiting from optimism about reduced export curbs to China.
However, inflation data released on June 11 introduced some caution. The Consumer Price Index (CPI) for May showed a 0.1% month-over-month increase, with a year-over-year rate of 2.4% and core CPI at 2.8%, lower than expected, according to EY. Despite this positive signal, the S&P 500 and Nasdaq edged lower by 0.27% and 0.5%, respectively, as investors digested the data alongside trade news, per CNBC.
The week’s momentum shifted dramatically on June 13 when escalating tensions between Iran and Israel triggered a sharp sell-off. Israel’s strikes on Iran’s nuclear facilities and Iran’s missile response raised fears of a broader Middle East conflict, causing the S&P 500 to drop 1.1%, the Dow 1.8% (over 700 points), and the Nasdaq 1.3%, according to Investopedia. Oil prices surged, with West Texas Intermediate futures jumping 7.6% to $73.20 per barrel, impacting sectors like travel while boosting oil and defense stocks.
The following table summarizes the US market performance:
Index | Weekly Performance | Year-to-Date (as of June 13, 2025) |
|---|---|---|
S&P 500 | -0.4% | +1.6% |
Dow Jones Industrial | -1.3% | -0.8% |
Nasdaq Composite | -0.6% | +0.5% |
Source: Edward Jones, June 13, 2025
For a visual representation, you can view the S&P 500’s historical data on Yahoo Finance.
International Markets: Mixed Performance Amid Global Events
International markets displayed varied performance, with the MSCI EAFE index, tracking developed markets outside North America, down 0.2% for the week, according to Edward Jones. This slight decline reflects a mix of regional economic conditions and global influences, including the same geopolitical and trade developments impacting the US.
In Asia, Chinese markets faced challenges due to persistent deflationary pressures. The CSI 300 and Shanghai Composite indices each declined by 0.25%, while Hong Kong’s Hang Seng Index gained 0.42%, as reported by T. Rowe Price. Japan’s Nikkei 225 saw modest gains, though specific weekly data is limited, with earlier reports indicating flat GDP growth in Q1 2025 and a 1.1% drop in April industrial production. These factors suggest a cautious outlook in the region, influenced by domestic economic challenges and global trade dynamics.
European markets also showed mixed results. While specific index data for the week is sparse, the broader context suggests that European markets were affected by the Iran-Israel conflict and trade developments. For instance, the EU50 index fell 1.31% on June 13 but remained up 9.33% year-over-year, according to TradingEconomics. Investors seeking diversification, a key aspect of wealth management, may find opportunities in international markets to balance US-specific risks.
Fixed Income Markets: Stability Amid Volatility
The fixed income market provided a counterbalance to equity volatility, with bond prices rising as yields declined. The 10-year Treasury yield fell 11 basis points to 4.40%, down from 4.51% at the week’s start, according to Nuveen. The iShares Core U.S. Aggregate Bond ETF, a benchmark for US investment-grade bonds, gained 0.7%, reflecting strong demand, per Edward Jones.
This performance was driven by moderating inflation data. The May CPI, released on June 11, showed a 0.1% month-over-month increase and a 2.8% year-over-year core rate, the lowest since March 2021, per EY. The Producer Price Index (PPI) on June 12 reported a 0.1% month-over-month rise, below the expected 0.2%, further supporting bond market stability, as noted by Nasdaq. Strong Treasury auction demand also bolstered the market, despite a 13% surge in oil prices due to the Iran-Israel conflict.
Other fixed income sectors performed well:
- Investment Grade Corporates: Returned 0.66%, with flat spreads and $2.7 billion in inflows.
- High Yield Corporates: Gained 0.15%, with spreads widening by 8 basis points and $1.1 billion in inflows.
- Emerging Markets Bonds: Returned 0.46%, outperforming Treasuries, with $738 million in inflows.
- Municipal Bonds: Short-term yields fell 4 basis points, longer-dated yields dropped 2 basis points, and high-yield munis yielded 5.84%, per Nuveen.
The following table details fixed income performance:
Asset Class | Performance | Spread Change | Inflows ($M) |
|---|---|---|---|
U.S. Treasury (10Y yield) | -11 bps to 4.40% | - | - |
Investment Grade Corporates | 0.66% | Flat | 2700 |
High Yield Corporates | 0.15% | +8 bps | 1100 |
Emerging Markets | 0.46% | Widened | 738 |
Municipal Bonds (High Yield) | -4 bps to 5.84% | - | 138 |
Source: Nuveen, June 9, 2025
For a visual of Treasury yield trends, see Advisor Perspectives.
Long-Term Market Perspective
Despite the week’s volatility, a long-term perspective highlights the resilience of equities. The S&P 500 has delivered approximately 10.04% over the past year, 61% over 5 years, 159% over 10 years, and 573% over 20 years, based on historical averages from TradingEconomics and SlickCharts. A $10,000 investment in the S&P 500 in June 2005 could be worth over $67,000 today, assuming dividends were reinvested. This underscores the value of staying invested, a principle we emphasize at Link Financial Advisory when helping clients with personal financial planning.
Key Takeaways for Investors
The week’s events highlight the impact of economic data, trade negotiations, and geopolitical risks on markets. For investors, particularly those managing 401k plans, understanding these dynamics is crucial for effective 401k benchmarking. Diversification across domestic and international equities, as well as fixed income, can help mitigate risks. The stability in bonds this week suggests they remain a vital component of a balanced portfolio, especially for those focused on wealth management.
At Link Financial Advisory, our Missoula financial advisory team works closely with clients to tailor strategies that align with their goals, whether optimizing a 401k or building a comprehensive financial plan. The long-term growth of markets, despite short-term fluctuations, reinforces the importance of a disciplined approach.
Conclusion
Navigating market volatility requires expertise and a focus on long-term goals. At Link Financial Advisory, we provide personalized services, including 401k benchmarking, personal financial planning, and wealth management, to help clients in Missoula and beyond achieve financial success. Contact us today to discuss how we can support your investment journey in these dynamic markets.
Key Citations
- Weekly Stock Market Update | Edward Jones
- Markets News, June 13, 2025: Stocks Plunge | Investopedia
- Markets News, June 6, 2025: S&P 500 Hits 6,000 | Investopedia
- Markets News, June 9, 2025: Stocks Rise | Investopedia
- Markets News, June 10, 2025: Stocks Rise for 3rd Day | Investopedia
- Markets News, June 11, 2025: S&P 500 Edges Lower | Investopedia
- Markets News, June 12, 2025: Stocks Rise | Investopedia
- S&P 500 Historical Data | Yahoo Finance
- S&P 500 | FRED | St. Louis Fed
- T. Rowe Price Global Markets Weekly Update
- Weekly Fixed Income Commentary | Nuveen
- Treasury Yields Snapshot: June 6, 2025 | Advisor Perspectives
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