Equities extended their rally in June, with the S&P 500 rising 5% and the Nasdaq gaining approximately 6.5%, building on strong May performance. The rally was driven by resilient economic data, mega-cap tech strength, and the potential for rate cuts sometime this year.
Tariff tensions eased further, as the 90-day pause announced in April continued to hold and legal challenges remained in play. While uncertainty persists, markets are increasingly pricing in a narrower range of outcomes, with worst-case scenarios appearing less likely.
Middle East conflict injected volatility into global markets, particularly in energy and defense sectors. However, a U.S.-brokered ceasefire helped calm investor fears. Importantly, record-high U.S. energy production helped cushion the economic impact and limited price spikes.
The Fed held rates steady again in June, reinforcing a data-dependent approach and hinting at potential cuts later this year. The central bank’s messaging, combined with softer inflation data, provided further reassurance to equity and bond markets.
Inflation continues to cool, with both Core CPI and Core PCE readings showing progress toward the Fed’s 2% target. Headline and core metrics for May indicated ongoing disinflation despite tariff and geopolitical pressures.
Markets remain focused on fiscal policy, as the tax and spending bill works its way through Congress. Investors are awaiting final details, which could significantly impact growth, corporate margins, and market leadership in the second half of the year.
Equity Markets
June extended the rally in U.S. equities, driven by resilient economic data and continued strength in mega-cap technology stocks. The S&P 500 advanced 5%, while the Nasdaq Composite climbed 6.5%, building on May’s robust gains. Both indices closed the month at all-time highs. Investor optimism was buoyed by better-than-expected inflation readings and a dovish tone from the Federal Reserve, suggesting potential rate cuts later in the year as well as continued progress on lowering trade tensions. These positives were enough to offset turmoil in the Middle East and lower personal spending data.
Equities Extend Rally
Equities Extend Rally
Performance Review & Outlook
Highlights
Equities extended their rally in June, with the S&P 500 rising 5% and the Nasdaq gaining approximately 6.5%, building on strong May performance. The rally was driven by resilient economic data, mega-cap tech strength, and the potential for rate cuts sometime this year.
Tariff tensions eased further, as the 90-day pause announced in April continued to hold and legal challenges remained in play. While uncertainty persists, markets are increasingly pricing in a narrower range of outcomes, with worst-case scenarios appearing less likely.
Middle East conflict injected volatility into global markets, particularly in energy and defense sectors. However, a U.S.-brokered ceasefire helped calm investor fears. Importantly, record-high U.S. energy production helped cushion the economic impact and limited price spikes.
The Fed held rates steady again in June, reinforcing a data-dependent approach and hinting at potential cuts later this year. The central bank’s messaging, combined with softer inflation data, provided further reassurance to equity and bond markets.
Inflation continues to cool, with both Core CPI and Core PCE readings showing progress toward the Fed’s 2% target. Headline and core metrics for May indicated ongoing disinflation despite tariff and geopolitical pressures.
Markets remain focused on fiscal policy, as the tax and spending bill works its way through Congress. Investors are awaiting final details, which could significantly impact growth, corporate margins, and market leadership in the second half of the year.
Equity Markets
June extended the rally in U.S. equities, driven by resilient economic data and continued strength in mega-cap technology stocks. The S&P 500 advanced 5%, while the Nasdaq Composite climbed 6.5%, building on May’s robust gains. Both indices closed the month at all-time highs. Investor optimism was buoyed by better-than-expected inflation readings and a dovish tone from the Federal Reserve, suggesting potential rate cuts later in the year as well as continued progress on lowering trade tensions. These positives were enough to offset turmoil in the Middle East and lower personal spending data.
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