General Market Commentary as of June 30, 2025
The second quarter of 2025 showed all US major indices posting positive returns. The S&P 500 was up 10.57%,
the Dow Jones Industrial Average gained 4.98%, and the Nasdaq Composite jumped 17.75%.
In Equity Markets, Emerging Markets were the top performer for the quarter. They slightly beat out Developed
Markets outside the US and US Markets. Globally, growth outperformed value and large caps narrowly edged
out small caps.
The Federal Reserve continued to leave interest rates on hold citing uncertainty around the impact of tariffs on
prices. There is indication from the Federal Reserve Committee’s “Dot Plot” that the second half of the year may
provide some rate reprieve. The European Central Bank and Bank of England both diverged from the Fed by
cutting their target rates again.
It was a volatile start to the quarter with sharp declines following the US Administration’s announcement of
global tariffs, driving the CBOE Volatility Index (VIX) to its highest levels since 2020. Much of the uncertainty was
quickly tempered with the announcement of a 90-day tariff pause allowing markets to recover swiftly.
Geopolitical conflict between Isreal and Iran also contributed to the volatility. In the closing days of the quarter,
Legislative work by the US Senate surrounding the “One Big Beautiful Bill Act” got underway. Further work in
early Q3 will determine if the bill should succeed the “Tax Cuts & Jobs Act of 2017” which is set to expire at the
end of 2025.
| Tot Return | 3-MO* | 12-MO* | 3-Year* | 5-Year* | Closing Value |
|---|---|---|---|---|---|
| S&P 500 | 10.57% | 13.63% | 17.91% | 14.89% | 6,204.95 |
| Dow Jones Industrial Average | 4.98% | 12.72% | 12.74% | 11.30% | 44,094.77 |
| NASDAQ Composite | 17.75% | 14.87% | 22.69% | 15.16% | 20,369.73 |
Source: Morningstar. The S&P 500, Dow Jones Industrial Average, and NASDAQ Composite are unmanaged indexes. It is not possible to invest in an index. Past performance is no guarantee of future results. * Price only. Does not include dividends.
All overviews and commentary are intended to be general in nature and for current interest, educational purposes and factual reference only and are subject to change based on market and other conditions.
