Weekly Investing Recap: What Just Happened — And What’s Coming

This was one of the more dramatic weeks in the markets so far this year.

Between global tensions, interest rate speculation, and shifting sector strength, investors had to stay sharp to avoid whiplash. The week started strong with positive sentiment on rate cuts, but ended with a spike in volatility, geopolitical shocks, and sector-wide declines. Still, underneath all of this, there were clear signals—signals that helped us at Deepdiverearch get ahead of the moves.

Let’s break down what happened this week, what you should know before Monday, and the themes you should keep on your radar.

Friday Wipeout: What Caused the Sell-Off?

Markets took a nosedive on Friday after reports confirmed Israeli airstrikes hit Iranian nuclear facilities, which followed earlier Iranian aggression. The escalation sent oil prices soaring and knocked down all major U.S. indexes. The Dow plunged over 750 points, the S&P 500 lost more than 1%, and the Nasdaq dropped nearly 1.3%.

Safe-haven assets surged—gold prices jumped, and defense sector stocks saw some relative strength. But overall, the market tone shifted to fear. The VIX, Wall Street’s “fear gauge,” spiked sharply, signaling that investors are preparing for more turbulence.

This geopolitical tension is now front and center. If the situation in the Middle East escalates, we could see more sell-offs, particularly in tech, airlines, and consumer stocks. At the same time, energy stocks, gold, and defense contractors may continue to rise.

Early-Week Strength: The Calm Before the Storm

Interestingly, most of the week had a bullish tone—until Friday flipped the script.

U.S. indexes had been rising modestly. The S&P 500 and Nasdaq were both up about 0.7% before Friday's drop, supported by good economic data. Jobless claims came in lower than expected, showing a resilient labor market, and inflation readings were mild enough to keep the conversation around rate cuts alive.

Tech and AI-related names continued to outperform early in the week. Some names like Credo, MercadoLibre, and Quanta were approaching technical breakout zones. Institutional money was rotating into quality infrastructure and AI-enabling companies, which was something we highlighted early in the week at Deepdiverearch.

All Eyes on the Fed Next Week

The most important event next week is the Federal Reserve meeting on June 18–19. The Fed is widely expected to hold interest rates steady at 5.25–5.50%, but the focus will be on the updated economic projections, known as the “dot plot.”

What the Fed communicates about future rate cuts could make or break market momentum. If they suggest cuts could come as early as September, it will likely be bullish for equities. But if they continue to take a cautious, data-dependent approach, volatility may remain high.

Also watch what Chair Jerome Powell says in his press conference—his language often sets the tone more than the data itself.

What to Watch Next Week

Here’s what we’ll be watching closely next week:

1. Fed Dot Plot and Press Conference
Expect no rate cut yet, but markets will hang on every word about “September cuts” or "disinflation progress." Traders are pricing in two cuts by the end of 2025. If Powell sounds hawkish, expect a short-term dip.

2. Oil Prices & Energy Stocks
Any further escalation in the Israel-Iran conflict could push Brent and WTI crude higher, which could benefit energy stocks but pressure broader market sentiment.

3. Retail Sales and Consumer Data
We’ll get U.S. retail sales and consumer sentiment numbers this week. This is important because strong data may make the Fed delay rate cuts, while weak numbers could increase recession fears. Either way, it’s going to move markets.

4. UK & Eurozone Inflation
The Bank of England meets next week as well. They’re not expected to cut yet, but any surprise shift could ripple through global bond markets.

5. Watch Sectors That Benefit from Volatility
Gold, defense, and infrastructure may see relative strength if volatility continues. We’re closely tracking these sectors for entries.

5 Quick News Highlights

Here are the top 5 headlines you need to know:

1. Markets Tank on Geopolitical Fears
   The Dow fell 769 points Friday after Israel retaliated against Iran. Risk-off sentiment hit global equities.

2. Oil Prices Surge on Middle East Tension
   WTI crude rose nearly 7% in one day. Brent briefly touched $83 before cooling. Energy stocks may benefit short-term.

3. Inflation Remains Subdued
   CPI and PPI came in under expectations, giving bulls hope the Fed may cut rates in September or later this year.

4. Tech Stocks Start to Consolidate
   Names like Nvidia, Apple, and Amazon didn’t rally much this week. Investors are rotating into “picks-and-shovels” names instead—AI enablers, not just headline grabbers.

5. Fed Meeting Coming
   The most important central bank update this month is next week. Markets are nervous, but positioned for a pause.

This week reminded investors how quickly sentiment can shift. One moment we’re talking about soft landings and AI stock rallies. The next, we’re seeing red across the board and oil surging on war fears.

As we go into next week, don’t be reactive—be prepared. The Fed meeting, oil prices, and geopolitical headlines will all affect market direction. Use this weekend to recheck your portfolio risk, tighten your strategy, and lean on sources that cut through the noise.

And if you want to stay ahead of the curve, take advantage of the 30-day free trial at Deepdiverearch. Let’s try to make next week just as successful as this one.

See you Monday.