The US stock market will continue to monitor the escalating conflict between Israel and Iran, with investors waiting for clarity on the economic outlook. The S&P 500 remains near its all-time high, but has been stuck in a sideways trend. Investors are cautiously optimistic about negotiations leading to de-escalation of the conflict, while skepticism surrounds President Trump’s “two-week” timeline.
Analysts point to strong consumer spending and the potential for a productivity boost from artificial intelligence as key drivers of the market’s resilience. However, weakening economic data, including lower-than-expected retail sales and jobless claims, suggests that the early-year boost to activity may be fading. The personal consumption expenditures price index, released by the Federal Reserve, is expected to provide insight into inflationary pressures.
Markets are treading water ahead of a packed earnings calendar, which includes releases from FedEx, Nike, Micron Technology, and General Mills. Despite these challenges, some analysts remain bullish on the market’s ability to continue advancing, citing strong consumer spending and technology stocks as key drivers of growth.
Source: https://www.cnbc.com/2025/06/20/stock-market-next-week-outlook-for-june-23-27-2025.html