TheDrop Market Analysis, 06/17/25

Markets dipped ahead of escalating tensions in the Middle East.

Iranian Supreme Leader Ruhollah Khomeini.

The Dow index fell 0.7%, the S&P 500 index fell 0.84%, and the Nasdaq index fell 0.91%. The Shanghai SE, the Boerse, and the Sensex are down while the Nikkei is quite surprisingly up, considering Japan's not-from-neutral stance in the Israel-Iran conflict.

Both the U.S. Dollar and gold have sunk while crude has increased. Many investors have started calling currencies from across the board, even cryptocurrencies, or outright selling them, leading to steep losses.

These losses have only been a systematic symptom of global predicaments which have only made investors' fears worse. Israel-Iran tensions failed to cease as President Trump demands unconditional surrender from Iran, and Iranian State TV made a bold threat that the world would never forget, as they have said.

A synthetic oil refinery struck by a missile.

In addition, markets fell in reaction to oil prices surging. Because Iran is a key contributor to OPEC's oil reserves, prices rose, affecting the outlook of other items which rely on oil, quite a significant percentage of consumer goods.

The Magnificent 7 generally performed terribly today, with Tesla leading the way with its substantial 3.9% decline in share price. Investors were not impressed when Wells Fargo warned that the EV producer would suffer in total deliveries Q2.