Market Movers: Midmorning Update

Fresh news and strategies for traders. SPY Trader episode #1238. Hey there, Spy Traders! It's your pal, Penny Stockings, here with your midmorning market update. It's 6 am on Saturday, June 14th, 2025, Pacific time, and let's dive into what's moving the markets.&x20; First up, the big picture. We've seen some choppiness this week. For the week ending June 6th, the Morningstar US Market Index actually popped up 1.65%. But don't get too excited, because on Friday, June 13th, the US500 took a tumble, dropping 1.13% to 5977 points. The Dow Jones got hit even harder, shedding 1.32% and dipping into negative territory for the year. The S&P 500 and Nasdaq didn't fall quite as far but, still, a bit of a bumpy ride. Now, let's talk sectors. Around June 6th, tech and communication services were the stars, up 3.13% and 2.84% respectively. On the flip side, consumer defensives and cyclicals were lagging, both down 1.36%. And get this – on one particular day, everything was down except for energy. Utilities even managed a small gain of 1.21% on some random day. Sector rotation is definitely something to keep our eye on. Macro news, what's going on? Inflation is still a topic of discussion. The Consumer Price Index rose 0.1% in May, which was actually better than expected. Yearoveryear, we're looking at a 2.4% increase. The Producer Price Index also came in lower than anticipated, up just 0.1%. Employmentwise, the economy added 139,000 jobs in May, beating expectations, and the unemployment rate is holding steady at 4.2%. Good news on the consumer front! The University of Michigan's Consumer Sentiment Index jumped to 60.5 in June, breaking a sixmonth losing streak. On trade, the U.S. monthly international trade deficit increased in March 2025 but then decreased in April 2025. Now, interest rates are still in the spotlight. The market's pretty sure the Fed won't be cutting rates at their June 18th meeting or even in late July. But, most folks are betting on two quarterpoint cuts by the end of the year, with the first one likely in September. Okay, let's get to some specific news. Geopolitical tensions are flaring up again. Israel's strikes against Iran have spooked the market, sending the S&P 500 and Dow lower and oil prices higher. We also got news that the US and China agreed on a 'framework' on trade after some talks in London. Still, everyone's keeping a close eye on tariffs and their potential impact. And Boeing is dealing with the fallout from that Air India crash. The CEO even had to cancel an airshow visit as the investigation kicks off. So, what's the takeaway? That sector rotation suggests investors might be feeling a little more risktolerant, shifting from safe sectors to growth sectors. Inflation data is hinting that the Fed might actually cut rates later this year. But, watch out for those geopolitical risks, especially in the Middle East, because they could send inflation soaring again and make the market very uncertain. Recent economic data is a mixed bag, with a strong labor market but potential signs of slowing growth. Alright, Penny's putting on his thinking cap for some recommendations! First, keep your portfolio diversified across different sectors and asset classes. Second, watch those Middle East tensions like a hawk. Third, stick with highquality companies that have solid fundamentals and a history of growth. Fourth, stay informed on economic data, the Fed's moves, and companyspecific news. And finally, keep a longterm perspective, okay? Don't panic sell because of shortterm headlines. Remember, this is just my two cents, not a guarantee! Always talk to a qualified financial advisor before making any big decisions. That's all for today, folks. Penny Stockings, out!