U.S. equities delivered another strong month in June 2025, with the S&P 500 TR Index rising 5.09% and the NASDAQ 100 gaining 6.34%, highlighting continued strength in growth and technology sectors. Global equities also performed well, with Emerging Markets and Asian equities outperforming developed international markets. Commodities were strong, led by precious metals, particularly silver, which rallied on both industrial demand and investor caution amid economic uncertainty. Bonds generally showed modest positive returns. The AI sector continued to attract significant investment, with companies such as AMD reflecting this trend. These dynamics pointed to a market environment favoring growth, technology, emerging markets, and commodities.
The economic backdrop was more mixed. Activity declined slightly, with consumer spending showing uneven trends. Employment levels were largely unchanged, though labor demand weakened. Wages grew at a modest pace, while inflation pressures remained elevated, partly due to tariffs that drove expectations of faster price increases. Manufacturing activity edged lower, construction slowed, and residential real estate sales were little changed. Businesses and households reported a cautious outlook due to persistent uncertainty, while labor shortages continued in some skilled trades. The Federal Reserve maintained its target range for the federal funds rate at 4.25%–4.50% and reaffirmed its intention to reduce holdings of Treasury securities and agency debt.
