19 June 2025 | S&P 500

Geopolitical tensions keep US stock market on edge — Bloomberg

Geopolitical tensions keep US stock market on edge — Bloomberg

According to Bloomberg, growing tensions in the Middle East are fueling investor uncertainty. Technical indicators for US stocks remain mixed as market participants weigh the potential economic fallout of the conflict and its impact on their portfolios.

Goldman Sachs reports that hedge funds continued buying US stocks last week, though at a reduced pace. Meanwhile, mutual funds saw $10 billion in outflows.

Commodity Trading Advisors (CTAs) purchased $2.8 billion in equities but are now positioned to sell rather than buy. Goldman estimates these funds could offload over $17 billion in stocks if the market declines this week.

Additional pressure may come from pension and target-date funds, which could sell $89 billion in securities during their month-end rebalancing, as noted by UBS analyst Rebecca Cheong. Such moves may further weigh on asset prices in the coming days.

Anton Volkov MarketCheese
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