Stocks swung wildly this week, but Wall Street is still eyeing a weekly win
Entering the holiday-shortened week, investors knew Israel-Iran drama and Fed rhetoric would be catalysts for outsized moves. Sure enough, Wall Street kicked off the week with a strong rebound, as easing oil prices and cooling Middle East tensions helped the Dow Jones Industrial Average (DJI) and S&P 500 Index (SPX) notch triple-digit gains on Monday. But optimism faded quickly, as geopolitical anxieties reignited following President Donald Trump’s early departure from the G7 summit and his escalated rhetoric toward Iran. Mixed retail sales data and renewed concerns about consumer strength added to the midweek unease.
Despite the choppy backdrop, stocks found footing after the Federal Reserve held interest rates steady. The Dow, SPX, and Nasdaq Composite (IXIC) all rallied Wednesday, brushing off global tensions. And while sentiment cooled again to close out the week, all three major indexes are poised to eke out weekly wins.
Sentiment Signals & Stock Setups
Several stocks emerged as potential trading opportunities this week. Rigetti Computing (RGTI) caught attention after a sharp pullback, with technical levels pointing to possible upside for dip buyers. Chipmaker Advanced Micro Devices (AMD) is flashing technical signals that suggest strength heading into next week. On a broader scale, sentiment indicators remain neutral, with recent polling revealing that traders are hesitant to chase the rally -- a backdrop that could support contrarian setups.
Big Moves: Mergers, Partnerships, and Policy Boosts
A wave of corporate and regulatory news powered big stock moves this week. U.S. Steel (X) jumped after its $14.1 billion merger with Nippon Steel was approved. Roku (ROKU) surged on news of a new content-sharing deal with Amazon (AMZN). Meanwhile, crypto stocks like Coinbase (COIN) and Riot Platforms (RIOT) rallied after a stablecoin bill cleared the Senate, lifting hopes for clearer digital asset regulation.
Stocks Try to Finish Q2 Strong, Plus Oil Shock Risks
Next week’s spotlight turns to housing data, with existing and new home sales due alongside fresh reads on consumer sentiment and business activity. On the options front, expiration week could add volatility to stocks already navigating key technical levels.
Meanwhile, Schaeffer’s Senior Quantitative Analyst Rocky White examines how a sharp spike in oil prices could rattle equities, and Senior V.P. of Research Todd Salamone highlights key S&P 500 risks to watch as the quarter winds down.