July 3, 2025
U.S. stock indices staged a forceful recovery in the second quarter following a sharp, but brief, correction in April triggered by trade policy developments. Fixed income investments recorded positive returns in a somewhat volatile period for interest rates as investors weighed the risks of higher inflation against those of softer economic data. Middle East tensions flared in June but have not broadened. The outlook appears constructive but will be shaped by economic policies, as trade negotiations continue and new fiscal policy is implemented.