6-16-25-SPX

The trend is up, and pullbacks should be considered buyable. Investors will most likely remain cautious while paying attention to trade developments, particularly between the U.S. and China. The trade talks with China continue to progress and it seems to be, on the margin, positive.

The S&P 500 experienced mixed sector performance last week. The energy sector led gains amid Middle East tensions, followed by healthcare, as oil prices jumped 13.9% to $73.56. Technology posted modest gains following positive U.S.-China trade framework developments, while financials lagged.

The escalating conflict between Israel and Iran dominated market attention, as Israel launched strikes on Iranian military and nuclear facilities starting Friday, followed by retaliatory missile attacks from Iran. This exchange marked their most serious direct confrontation yet, resulting in dozens of casualties on both sides and significant damage to Iran’s nuclear infrastructure. The conflict triggered a flight-to-safety response, with oil surging on Friday to its largest weekly gain since 2022, while investors sought assets like gold. Despite the humanitarian toll, historical data suggests that geopolitical shocks typically have short-lived market impacts, particularly on U.S. equities compared to international markets.