empty
16.06.2025 10:43 AM
Stock Market on May 16th: S&P 500 and NASDAQ Closed Lower

At the end of the previous regular session, U.S. stock indices closed in negative territory. The S&P 500 dropped by 1.13%, while the Nasdaq 100 declined by 1.30%. The Dow Jones Industrial Average lost 1.79%.

Today, investors adopted a cautious stance as the escalation of the conflict between Israel and Iran led to a rise in oil prices and raised concerns about long-term consequences.

This image is no longer relevant

The surge in oil prices triggered by the conflict presents a dual threat. On one hand, it fuels inflation, potentially prompting central banks to tighten monetary policy. On the other hand, it pressures corporate earnings by increasing companies' costs and reducing their competitiveness. In this context, investors prefer to stay on the sidelines, monitoring developments and waiting for clearer signals.

The long-term consequences of the conflict remain uncertain. Depending on its scale and duration, it could lead to oil supply disruptions, increased geopolitical instability, and possibly broader military action. All of this poses serious risks to the global economy and financial markets.

Chinese indices traded within a mixed range of gains and losses. European index futures saw slight declines. The U.S. dollar was mostly unchanged, while gold hovered near a record high.

As noted earlier, Brent crude prices surged 5.5% at the start of trading but quickly gave up most of those gains. The sharp jump in oil prices underscored the wait-and-see attitude of many investors as they weighed fears over the escalating Middle East conflict against domestic developments. By the end of the trading session, oil was up less than 1%.

The key concern for investors is whether the conflict can be contained following a weekend filled with attacks from both sides and Israeli Prime Minister Benjamin Netanyahu's vow to "strike every place and every target of the ayatollah regime."

However, markets have not yet fully abandoned risk. Yields on U.S. Treasuries and some Asian government bonds rose — a sign that investors are not aggressively seeking the safety of low-risk government debt.

This image is no longer relevant

The Israeli shekel rose more than 1% against the dollar after four consecutive days of losses.

As for the technical picture of the S&P 500, the primary objective for buyers today will be to overcome the nearest resistance at $6013. This would support further growth and open the path toward a breakout to the $6030 level. An equally important task for bulls will be maintaining control above $6047, which would strengthen their position. If the index moves lower amid reduced risk appetite, buyers must defend the $5999 level. A breakdown below it would quickly push the index back to $5986 and open the door to $5975.

Jakub Novak,
Analytical expert of InstaForex
© 2007-2025
Summary
Urgency
Analytic
Pavel Vlasov
Start trade
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Update on US stock market on July 22. SP500 and NASDAQ sharply down

US stock indices closed mixed yesterday. The S&P 500 rose by 0.14%, and the Nasdaq 100 gained 0.38%. However, the industrial Dow Jones dipped by 0.04%. Today, Asian stocks declined

Jakub Novak 09:54 2025-07-22 UTC+2

High-profile elections in Japan and three important signals for traders

Markets are once again in a state of turbulence. The Japanese yen is fluctuating wildly following the political collapse of Prime Minister Shigeru Ishiba's coalition, which has deepened uncertainty

Аlena Ivannitskaya 12:43 2025-07-21 UTC+2

US stocks end week higher

S&P 500 Overview for July 21 The US market ended the week with gains Major US indices on Friday: Dow -0.3%, NASDAQ +0%, S&P 500 +0%, S&P 500 at 6,297

Jozef Kovach 09:30 2025-07-21 UTC+2

Update on US stock market on July 18. Investors overwhelmed by optimism. SP500 above 6,300

S&P500 Snapshot of major US stock indexes on Thursday Dow +0.5%, NASDAQ +0.7%, S&P 500 +0.5%, S&P 500 closed at 6,297, trading in a range of 5,900 to 6,400

Jozef Kovach 12:48 2025-07-18 UTC+2

Stock market on July 18: SP500 and NASDAQ continue their rally

As of yesterday, US stock indices closed higher. The S&P 500 rose by 0.54%, while the Nasdaq 100 added 0.75%. The industrial Dow Jones strengthened by 0.52%. Today

Jakub Novak 12:02 2025-07-18 UTC+2

Update on US stock market on July 17: key stock indices consolidating below their highs

S&P500 Snapshot of major US stock indices on Wednesday Dow +0.5%, NASDAQ +0.3%, S&P 500 +0.3%, S&P 500 closed at 6263, trading in a range of 5,900 to 6400

Jozef Kovach 13:03 2025-07-17 UTC+2

Stock market on July 17: SP500 and NASDAQ lifted by Powell speculation

As of yesterday, US stock indices closed higher. The S&P 500 rose by 0.32%, while the Nasdaq 100 added 0.25%. The industrial Dow Jones strengthened by 0.53%. The dollar also

Jakub Novak 12:28 2025-07-17 UTC+2

Update on US stock market on July 16: decline following key reports

S&P500 Snapshot of US major stock indices on Tuesday Dow -1%, NASDAQ +0.2%, S&P 500 -0.4%, S&P 500 closed at 6,243, trading in a range of 5,900 to 6,400

Jozef Kovach 13:11 2025-07-16 UTC+2

Stock market on July 16: SP500 and NASDAQ fell sharply amid new Trump tariffs

As of yesterday, US stock indices closed mixed. The S&P 500 fell by 0.40%, while the Nasdaq 100 gained 0.19%. The industrial Dow Jones dropped sharply by 0.98%. During this

Jakub Novak 10:10 2025-07-16 UTC+2

Update on US stock market on July 15: stock indices got stuck below all-time highs

S&P500 Major stock indices standing tall near all-time highs Snapshot of the key US stock indices on Monday: Dow +0.2%, NASDAQ +0.3%, S&P 500 +0.1%, S&P 500 closed at 6,268

Jozef Kovach 10:38 2025-07-15 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.