Argentine stocks experienced notable volatility in late June and early July 2025 amid a challenging global environment marked by heightened risk aversion and geopolitical tensions in the Middle East. The S&P Merval index saw declines of up to 5.3% ahead of a key MSCI decision, reflecting investor caution. However, improved global market sentiment led to a rebound, with the S&P Merval rising as much as 8% and marking its best performance in six weeks. Despite this recovery, the market faced renewed pressure following an adverse U.S. court ruling related to YPF, Argentina's state-controlled oil company. YPF shares plunged between 5% and 7% on Wall Street, triggering a contagion effect across other Argentine assets. The fallout from the ruling also contributed to an increase in country risk, with spreads reaching 701 basis points, and a weakening Argentine peso amid rising demand for dollars ahead of the South American winter holidays. While Argentine stocks and bonds showed signs of recovery in early July, dollar-denominated bonds continued to decline, reflecting ongoing market uncertainty. The situation remains fluid as investors weigh the implications of the U.S. judicial decision on YPF and broader macroeconomic factors.