Notable market news this past week (29-June-25)
Here is the Skeptivest roundup of the latest market headlines for the week
🌍 Iran’s nuclear ambiguity, NATO’s defense boost, and Europe’s debt challenge amidst defence spending push
Iran's Khamenei reemerges, downplays US strikes amid nuclear uncertainty: After a week-long absence during Israel’s bombing campaign, Ayatollah Ali Khamenei reappeared in a prerecorded address claiming US strikes on Iran’s nuclear sites were ineffective and touting Iran’s retaliation on a US base in Qatar as a blow to American power. However, the status of Iran’s nuclear program remains unclear. While President Trump declared it “completely and fully obliterated,” early leaked US intelligence indicates the damage may have only delayed progress by a few months.
NATO allies agreed to boost defense spending from 2% to 5% of GDP by 2035, aiming to strengthen the alliance against threats from Russia and Middle East instability. The increase is viewed as a win for President Trump, who has pressured members to raise their contributions while reaffirming US commitment to NATO despite past withdrawal threats.
EU debt levels raise alarm amid defense spending push: German Chancellor Friedrich Merz has warned that soaring public, corporate, and household debt across Europe risks triggering a new financial crisis, calling the current trajectory “unhealthy” during a press conference in Berlin. His concerns were echoed at an EU summit where leaders, including Spain’s Pedro Sanchez and European Council president Antonio Costa, questioned how the bloc could meet ambitious defense spending targets, such as the proposed 5% of GDP, without overstretching already pressured public finances.
☕️ Quick fire happenings to note
🌏 Global macro
- Fed Chair Powell urges patience amid growing pressure on rate cuts: In his semiannual testimony to Congress, Fed Chair Jerome Powell emphasized a cautious “wait and see” approach, stressing that upcoming inflation data will be critical to timing any interest rate cuts this year. The Federal Open Market Committee recently held rates steady at 4.25%–4.5%, but the “dot plot” reveals division among members on how many cuts are needed, with some Trump-appointed officials advocating for a July reduction
- The US and China signed a long-delayed trade deal four days ago, according to Commerce Secretary Howard Lutnick, with Beijing confirming parts of a framework that includes rare earths commitments but skirts contentious issues like fentanyl trafficking. A full readout was not provided. President Trump added that deals with 10 other countries, including a “very big” one with India, are close, though negotiations with the EU are expected to be more challenging.
- American consumer sentiment remains deeply negative, with the University of Michigan’s index stuck near record lows after a sharp 29% drop earlier this year — a decline that historically signals an impending recession. While sentiment ticked up slightly in June, expectations for higher prices and slower growth persist. Despite this, Wall Street appears unfazed, buoyed by resilient jobs data and a stock market rebound.
- Russian banking officials are warning of a credible risk of a systemic crisis within the next year, as rising defaults by corporate and retail borrowers push bad debts into the trillions of rubles—likely exceeding official estimates. The economic outlook is deteriorating, marked by slowing growth, surging inflation, and acute labor shortages, raising doubts about President Vladimir Putin’s capacity to sustain the costly, three-year war in Ukraine.
- BlackRock pushes private markets into retirement saving accounts: BlackRock is launching a new target-date fund that includes private credit, private equity, and other alternative assets, aiming to boost annual returns by 0.5%, potentially compounding to 15% over 40 years. The move aligns with CEO Larry Fink’s broader strategy to expand access to private markets via retirement savings, following the firm’s $30 billion push into private assets.
🏦 Individual stocks/companies
- Nike (+20.92% past 5D) soars after CEO soothes investors: Nike confirmed the worst of its turnaround-related financial impact is behind it, lifting investor confidence and prompting bullish commentary from Wall Street banks like HSBC. While key strategies are showing early signs of progress, the company remains unable to project when growth will resume. Still, the outlook appears to be improving following a better-than-expected Q4 performance.
- Equinix (-11.35% past 5D) shares fall on disappointing growth outlook and higher capex plans: Equinix shares dropped 9.6% after the company forecasted 7-10% annual revenue growth and 5-9% AFFO per share growth through 2029, missing investor expectations. The announcement of a sharp increase in capital expenditures to $4–$5 billion annually from 2026 to 2029 for AI-ready data center expansion raised concerns over near-term profitability, prompting analyst downgrades.
- Coinbase (+17.16% past 5D) shares jumped, reaching a six-month high after favorable regulatory news, including stablecoin legislation passing and key European approvals. The stock has gained 30% over five days, boosted by Congress’s approval of the GENIUS Act, which establishes a US stablecoin regulatory framework.
- Uber (+9.64% past 5D) shares gained 7.5% following the announcement of a partnership with Waymo to deploy autonomous vehicles in Atlanta. Riders can request self-driving cars via the Uber app, with Waymo operating the fleet, turning competition rumors into a collaborative win.
🇸🇬 Singapore related
- Singapore’s inflation eased in May, with core inflation dipping to 0.6% from 0.7% in April and headline inflation falling to 0.8% from 0.9%, driven mainly by slower rises in food and private transport costs. The Monetary Authority of Singapore and Ministry of Trade and Industry expect imported inflation to remain moderate despite recent crude oil price increases, supported by weaker global demand and government subsidies easing domestic cost pressures. Core inflation is forecast to average 0.5% to 1.5% in 2025 amid rising external uncertainties. Ask ChatGPT
