Stocks End Quarter at a Record High

Highlights include:

• In a volatile first half of 2025, the S&P 500 Index, an index comprised of the 500 largest U.S. companies by market capitalization, increased 6% and ended June at a record high.
• The S&P 500 rallied 24% from its April bottom to its closing high in only 89 days—the quickest recovery ever among past declines of at least 15%.¹
• However, reflecting investors’ nervousness about growth in the turbulent six-month period, some defensive areas of the market gained more than cyclical or growth-oriented areas.
• Several factors support a bullish outlook for U.S. stocks and the economy. Many U.S. companies have had robust earnings growth. The Federal Reserve is expected to cut interest rates later in 2025, which should provide favorable borrowing conditions for consumers and spur economic growth.
• The Consumer Price Index reflects relatively low inflation, at 2.4% over the 12 months ending in May,² and the unemployment rate remains at a low 4.2% as of May 2025, signaling a resilient labor market.³ These dynamics bolster confidence in continued economic and market strength.

¹ The Wall Street Journal, 6/27/25
² U.S. Bureau of Labor Statistics, Consumer Price Index
³ U.S. Bureau of Labor Statistics, Employment Situation

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Katharine E.W. Dudley, AIF^®
Senior Vice President, Client Advisor

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