WSJ What’s News: Markets Wrap-Up – June 21, 2025

Host: Francesca Fontana, The Wall Street Journal

In the latest episode of What’s News in Markets, Francesca Fontana delves into the week’s most significant market movements, driven by geopolitical tensions and pivotal corporate developments. Here’s a comprehensive summary of the key topics discussed:

1. Geopolitical Tensions: Israel-Iran Conflict and Market Volatility

Timestamp: [00:33]

Francesca begins by highlighting the primary focus of investors this week: the escalating conflict between Israel and Iran. The ongoing hostilities have raised concerns about oil price volatility and overall market stability.

• Impact on Markets: The uncertainty surrounding the Middle East has kept investors on edge, influencing both stock and commodity markets. Francesca notes, “Investors were focused on developments in the conflict between Israel and Iran and how the situation in the Middle East affects volatility and oil prices.”

• Federal Reserve Stance: Concurrently, the Federal Reserve maintained interest rates on hold as anticipated on Wednesday, providing a measure of predictability amidst the chaos.

Quote:
"Hopes for a quick resolution to the Israel-Iran conflict began to fade," Francesca explains, underscoring the prolonged uncertainty impacting investor sentiment.

2. U.S. Steel's Landmark Deal with Nippon Steel

Timestamp: [01:15]

A significant corporate development this week was the completion of U.S. Steel’s acquisition by Japan’s Nippon Steel, marking a pivotal moment in the steel industry.

• Deal Breakdown: The acquisition, initially proposed in 2023 with a $14.1 billion offer, faced hurdles due to national security concerns under the Biden administration. However, an executive order from President Trump on June 13 cleared the path, contingent on a $14 billion investment from Nippon Steel into U.S. operations.

• Government Oversight: The agreement included the issuance of a “golden share” to the government, granting authority over production and trade decisions within U.S. Steel.

Market Reaction:
The announcement led to a noticeable uptick in U.S. Steel’s stock, which surged by 5.1% on the following Monday, culminating in the deal’s closure by Wednesday.

Quote:
"Trump's executive order allowed it to move forward thanks to a national security agreement with Nippon," Francesca detailed, highlighting the administration’s role in facilitating the acquisition.

3. SunRun’s Stock Plunge Amid Tax Credit Revisions

Timestamp: [02:45]

Shifting focus to the renewable energy sector, Francesca discusses the sharp decline in SunRun’s stock following proposed revisions to tax incentives.

• Legislative Changes: Senate Republicans introduced major alterations to the House’s expansive tax and spending bill, notably maintaining the phaseout of solar and wind energy tax credits established under the 2022 Inflation Reduction Act.

• Industry Impact: While the Senate’s version extended the timeframe for utilizing these credits, it fell short of the renewable industry’s expectations for more favorable terms. Additionally, the revisions encompassed permanent business tax breaks and significant cuts to Medicaid.

Market Response:
As a consequence, SunRun experienced a drastic 40% drop in shares on Tuesday, concluding the week with a substantial 38% decline.

Quote:
"The Senate maintained the full phaseout of solar and wind energy tax credits," Francesca remarked, emphasizing the regulatory challenges faced by renewable energy firms.

4. 23andMe’s Financial Turmoil and Potential Revival

Timestamp: [04:10]

In a surprising turn of events, Francesca covers the financial distress of the DNA testing giant, 23andMe.

• Bankruptcy Proceedings: Originally valued at $6 billion, 23andMe found itself in bankruptcy, with biotech firm Regeneron acquiring its assets for $256 million during a bankruptcy auction.

• Potential Buyout: However, late last Friday, Co-founder Anne Wojcicki aimed to regain control by securing an unsolicited $305 million offer from her nonprofit, TTAM Research Institute, thereby reopening the bidding process.

• Historical Context: This isn’t Anne’s first attempt to take the company private. Previous offers were rebuffed by the board, leading to significant upheaval and eventual bankruptcy, resulting in the company being delisted from Nasdaq and now trading over the counter.

Market Impact:
Following these developments, 23andMe’s stock plummeted by 24% on Monday and ended the week with a 21% decline.

Quote:
"23andMe has gone from being valued at $6 billion to bankruptcy," Francesca highlighted, illustrating the dramatic shift in the company’s fortunes.

Conclusion

Francesca Fontana wraps up the episode by encapsulating the week's volatile market movements, driven by geopolitical unrest and significant corporate transactions. With ongoing tensions in the Middle East and strategic shifts in major industries, investors are navigating a landscape marked by uncertainty and rapid change.

For more detailed analyses and updates on stock movements, Francesca directs listeners to her column, The Score, in the Wall Street Journal’s Exchange section.

Produced by: Zoe Culkin
Supervising Producer: Taliar Bell

This summary provides an in-depth overview of the key discussions from the latest episode of WSJ’s What’s News in Markets, ensuring listeners stay informed on pivotal market developments.