WTF Dailies June 13, 2025

U.S. stock futures dropped sharply early Friday following a series of Israeli airstrikes on Iran, which sent energy prices surging and injected fresh uncertainty into an already tense geopolitical backdrop.

Market clearly underestimated escalation risk ahead of talks reflected in today’s sharp global equity selloff.

An attack on Iran, leading to a spike in oil prices to $120, could result in a 1.7% increase in the US headline CPI, assuming all other factors remain constant.

Any persistent gain in oil prices could fuel inflation, adding to the challenges confronting the Federal Reserve and other central banks as policymakers also contend with the repercussions of Trump’s trade war.

Airline stocks sink on rising fuel concerns, but defense stocks shine; Adobe raises annual guidance

Delta Air Lines (NYSE:DAL), United Airlines (NASDAQ:UAL), Southwest Airlines (NYSE:LUV) and American Airlines (BMV:AAL) all dropped sharply as the surge in crude prices raised concerns about higher fuel costs for the carriers, while defense companies Lockheed Martin Corporation (NYSE:LMT), Rtx Corp (NYSE:RTX), Northrop Grumman (NYSE:NOC) and L3Harris Technologies (NYSE:LHX) all gained on the heightened.  geopolitical tensions.

Defence stocks, however, were on the front foot as investors bet that a prolonged could bolster orders for military assets, with Lockheed Martin Corporation (NYSE:LMT) and Rtx Corp (NYSE:RTX), and Northrop Grumman Corporation (NYSE:NOC) among the biggest gainers.  

Elsewhere, Adobe (NASDAQ:ADBE) stock slipped despite raising its annual guidance, while Apple (NASDAQ:AAPL) edges higher after its iPhone sales rose to the top spot in China in May, with global sales growing 15% year-on-year during April and May in the tech giant’s strongest performance for the two-month period since the COVID-19 pandemic, data from Counterpoint Research showed.

The University of Michigan’s consumer sentiment report rebounded in June to a reading of 60.5 in the first two weeks of June from a reading of 52.2 in May, according preliminary results released Friday.

The improved sentiment comes as inflation data this week showed easing price pressures.

The May producer price index came in cooler than expected on Thursday, restrained by lower costs for services like air fares, matching the consumer price index release the prior day, suggesting the impact of Trump’s tariffs have yet to be fully felt. 

The benchmark S&P 500 (SP500) slipped -1.1% to end at 5,976.97 points, giving up the 6,000 points level for the first time since June 5. The Nasdaq Composite (COMP:IND) finished -1.3% at 19,406.83 points, and the Dow (DJI) closed -1.8% at 42,197.79 points.

For the week, the averages were -0.4%, -0.6%, and -1.3%, respectively.

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This daily briefing is curated from a wide range of reputable sources including news wires, research desks, and financial data providers. The insights presented here are a synthesis of key developments across global markets, intended to inform and spark thought.

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