Overview

• The index remains within 3 percent of its all-time high after a week of trading turbulence driven by renewed conflict in the Middle East.
• Israel and Iran exchanged missiles on June 12, sending oil prices up as much as 14 percent and lifting the Cboe Volatility Index above 20.
• Bank of America data show institutional clients have sold stocks for five straight weeks over concerns about elevated valuations.
• The S&P 500 now trades at 21 times forward earnings—about 35 percent above its long-term average—prompting warnings of limited upside potential.
• Expectations for a slowdown in corporate profit growth in the second half of 2025 have prompted some investors to shift into real estate, energy and pharmaceutical shares.