Stock Market Commentary -
U.S. stocks rallied during the second quarter, with the S&P 500 finishing up 10.9% reaching new all-time highs. The beginning of the quarter, however, was marred by a precipitous drop following the “liberation day” tariff announcements that sent stocks spiraling, the dollar plunging, and capital fleeing to investments abroad.
The de-escalation of trade disputes mid-quarter helped the industrial, technology, and communication service sectors to rebound. The consumer discretionary sector rose 11.5% despite trade spats and increased tariffs weighing on the sector. The energy sector surprised analysts by falling -8.56% even as tensions in the Middle East soared. International and emerging market stocks, tracked by the MSCI EAFE Index and MSCI Emerging Markets Index, continued their record-breaking returns posting 12.0% and 12.0%, respectively, as the U.S. dollar weakened. Germany fueled the market further when the newly formed coalition government agreed to more expansive fiscal policies to boost growth.
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