Surprise Turn for Stock Market This Week

Stocks were high on Monday, subverting expectations and giving investors hope that this week might be a good one.

Written by: Timothy St. John • Tuesday, June 17, 2025 • 2 min read

• Last updated: Tuesday, June 17, 2025

Stocks are climbing unexpectedly this week.

Quick overview

All three major U.S. stock market indices closed higher on Monday, defying expectations amid ongoing Middle East conflicts.
The Dow Jones, S&P 500, and Nasdaq Composite rose by 0.75%, 0.94%, and 1.52% respectively, suggesting a potentially strong week ahead.
Upcoming Federal Reserve decisions on interest rates could significantly impact market performance, with inflation remaining a concern.
Geopolitical tensions and fluctuating stock performances, particularly for companies like Tesla, indicate a volatile market environment.

All three major stock market indices closed high on Monday in a surprising turn of events. Despite continued fighting in the Middle East, the U.S. stock market remains healthy.

Middle East conflict has kept the market from climbing very high.

We expected that Friday’s low numbers would continue into the start of this week, but that has not been the case so far. The Dow Jones closed on Monday up by 0.75%. The S&P 500 climbed 0.94%, and the Nasdaq Composite added 1.52%.

With all three indices looking up, we could have an unexpectedly high week on the stock market. Wednesday’s upcoming Federal Reserve rate decision will be one of the big moments over the next few days. If the Fed moves ahead with its proposed mid-year rate cut, then the stock market should climb even higher. All signs point to the Fed holding off on that rate cut for now.

The last inflation reading was high, with economic reports showing that prices are going up but not as high as anticipated. While lower than expected price increases are a good thing, the fact that prices are still climbing means that inflation is likely to remain elevated. As long as inflation is not moving lower, the Fed is not very interested in cutting the interest rate.

Will the Stock Market Remain High

We expect that the fighting between Israel and Iran as well as increased conflict between Russia and Ukraine will slow trading on the stock market this week. As fighting ramps up in those areas, precious resources are being used up and destroyed. War tends to create a tightening of the belt around the world as investors pull back on spending and selling pressure increases.

The stock market is still benefiting from a pause on some of the new, stiff tariffs that President Donald Trump had proposed. As long as trade partners are willing to negotiate with the United States, those tariffs will likely remain paused, even beyond the proposed 90-day limit. But the situation could change at any time, and stock market investors need to be aware of the volatility that creates.

Apple (AAPL) and Nvidia (NVDA) were both up on Monday as trading finished, and these two stocks could continue to do very well this week. The struggling Tesla (TSLA) stock dropped on Monday and will likely fluctuate throughout the week leading up to the proposed robotaxi service launch. Investors will find very few rock solid stocks for the moment with the market in its current state of flux.

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ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.