S&P 500 Market Update: Renewable Energy Recovery, Airline Turbulence, and Jabils Strong Earnings

On Wednesday, June 18, 2025, the S&P 500 experienced a 0.5% gain, as investors welcomed the latest developments in the Middle East situation, which seemed to have calmed down after President Trump's tough stance. The Dow industrials and the tech-heavy Nasdaq also rose 0.4% and 0.6%, respectively. Renewable energy stocks showed some recovery after a Senate budget proposal maintained the House reconciliation bill's elimination of clean-energy tax credits. However, the draft Senate bill still stipulates a phase-out of solar and wind energy tax credits by 2028 but extends incentives for hydro, nuclear, and geothermal power until 2036. Shares of Enphase Energy (ENPH) and First Solar (FSLR) both gained 5% and 3%, respectively. Shares of power utility AES Corp. (AES), which garners a majority of its renewable energy revenue from wind and solar, rose 2.5%. Airline stocks continued to face turbulence after JetBlue (JBLU) CEO announced the carrier would be dropping unprofitable routes and implementing other cost-cutting measures in response to soft travel demand. JetBlue shares lost 1.5%, while United Airlines (UAL) and Delta Air Lines (DAL) shares were down 1% and 0.7%, respectively. However, rising oil prices helped to offset some of the losses in the airline sector. T-Mobile US (TMUS) shares recovered slightly from the previous day's decline, gaining 1.5%. The company's shares had fallen 4.1% on Tuesday following reports that Japanese investment firm SoftBank (SFTBY) sold a major portion of its stake in the telecommunications giant. On the other hand, shares of circuit board maker Jabil (JBL) continued to surge, gaining an additional 2.5% to reach a new record high. The company's Intelligent Infrastructure segment, which is benefitting from strong AI-related demand, continues to be a growth driver for the company despite some softness in its electric vehicle, renewables, and 5G markets. Crude oil futures remained higher as concerns about the fighting in the Middle East regained intensity, helping stocks across the oil and gas industry. Shares of Valero Energy (VLO), the world's largest independent oil refiner, advanced 1%. CrowdStrike Holdings (CRWD) shares added 1.5% after announcing a new incident response service for Amazon Web Services customers, with CrowdStrike's AI-powered Falcon cybersecurity platform helping users of the Amazon cloud service respond more quickly to incidents.