Trading results for 16-20 June 2025

The past week, although shortened (with the U.S. observing Juneteenth on Thursday), proved to be quite tense. However, the weekly results do not reflect this: the leading U.S. indexes remained virtually unchanged. The blue-chip Dow Jones index (DJIA-30) and the NASDAQ Composite index of high-tech companies posted symbolic gains of 0.02% and 0.21% respectively, while the broad-market S&P 500 slipped by a similarly symbolic 0.15%. In other words, nothing really changed.

But that does not mean the week was calm. On the contrary, there was no shortage of developments. Let’s start with the main one: geopolitics remains the key market driver, with all eyes on the Middle East as investors waited to see whether the U.S. would become involved in the Iran-Israel conflict. Fortunately for the markets, no final decision followed. And although fears among investors persist, they have not materialised. That is likely why we are seeing near-zero movements in the indexes.

In addition, the U.S. Federal Reserve’s FOMC held another meeting during the week, which – as widely expected – resulted in the interest rate being left unchanged. The market reaction was minimal: only a few remarks from Fed Chair Jerome Powell triggered a mild “murmur in the crowd” and a brief rise in volatility. In short, much ado about nothing. That too was entirely predictable.

So, the main activity took place at the corporate level – that is where the developments driving market activity unfolded.

The week’s leader within the S&P 500 was the stock of the largest cryptocurrency exchange, Coinbase Global Inc (COIN), which soared by almost 30% (+29.87%) after the U.S. Senate approved a bill requiring stablecoin issuers to hold their reserves in reliable assets – U.S. dollars, Treasury bonds and similar instruments. This sparked renewed interest in both stablecoin issuers and trading platforms for these assets. Nonetheless, Coinbase’s impact on the market as a whole remained limited – it is a relatively small company. As a result, in terms of sectors, only oil and gas companies ended the week in positive territory, with shares rising by an average of 1.75%.

As for the biggest losers of the week, those were stocks in the healthcare and pharmaceutical sectors, which lost an average of 3.46%. There were several reasons for the sell-off. Firstly, shares in sector leader Eli Lilly & Co (LLY) came under pressure following news of its acquisition of genome editing startup Verve Therapeutics (VERV). But that was just the beginning. A wave of sell-offs was triggered by news that the U.S. Department of Health planned to introduce strict regulations on pharmaceutical advertising. Following this, shares in giants such as AbbVie (ABBV), Pfizer (PFE) and several others came under heavy selling pressure, ultimately pulling the entire sector down.

American lawmakers also made their presence felt in another sector. This time it was solar energy that came under pressure, as incentives for its development were cut in the new budget. The market reacted immediately – shares in leading sector companies plummeted. Shares in First Solar (FSLR), one of the industry’s flagships, fell by nearly 12% over the week (-11.92%), while Enphase Energy (ENPH) saw an even sharper decline of almost 20% (-19.15%).

Also worth noting is that last Friday marked the so-called Quadruple Witching Day in the U.S. – when quarterly futures and options on stocks, indexes, currencies, precious metals and interest rates all expire simultaneously. These days are usually accompanied by a sharp increase in trading volumes. However, this time, volumes came in below typical levels for such sessions – a sign that many investors prefer to remain cautious and observe the market from the sidelines.

Market jitters on a global scale naturally impacted the performance of the ITS index family. The ITS World Index (ITSW) suffered the most, falling by nearly 1.5% over the week (-1.42%). The primary reason for the decline was not developments in the U.S. (where, as we saw, things remained relatively stable) but rather heightened anxiety among investors in Europe and Asia.

European markets ended the week firmly in negative territory, with major indexes losing between 2% and 4%. In Asia, Chinese investors were particularly jittery. All key indexes – the Shanghai Composite, Shenzhen Component and Hong Kong’s Hang Seng – closed the week lower, each down by between 1% and 2%. The main source of concern, of course, was the unstable geopolitical situation in the Middle East. Investors around the world are uneasy and opting for extreme caution.

In contrast, the ITS Shariah Index (ITSS) recorded far smaller losses – just -0.33%. This unique index was supported by tech heavyweights Apple (AAPL) and Advanced Micro Devices (AMD). Demand for Apple shares rose following an encouraging forecast for the second half of the year, while AMD impressed investors with the launch of new server solutions capable of competing with similar products from NVidia (NVDA).

It was, in short, a week of stark contrasts. Some assets are confidently moving along a bright path, while others are sliding downhill. That is perfectly normal – the market has a complex, ever-changing life of its own. The most important thing is for geopolitics not to get in the way of business development. Then investors will be able to make balanced, informed decisions without unnecessary stress.