As Theodore Roosevelt said, “believe you can and you’re halfway there.”
Well we’re halfway through 2025, and investors have been doing plenty of believing. Markets continued to rally, erasing the early-April tariff selloff as major US indices reached new highs. While conflicts overseas and ongoing trade policy uncertainty caused geopolitical volatility, the impact on markets was largely muted. Healthy labor market data, combined with relatively tame inflation, helped support sentiment for the month.
The Nasdaq 100 led the way higher, climbing 6.34% as large-cap tech companies continued to surge. Other US indices weren’t far behind, with the S&P 500, Dow Jones Industrial Average, and CRSP US Small Cap Index posting gains of 5.09%, 4.47%, and 4.23% respectively. Cyclical sectors outpaced more defensive sectors for the month, as growth fared better than value as a style.
International stocks slightly lagged their US counterparts, but still experienced solid gains. Developed international stocks were up 3.39%, with emerging markets advancing 5.54%. Rising tensions overseas weighed on global sentiment for the month, but international markets are still outpacing the US on a year-to-date basis.
Bonds were also positive as falling interest rates pushed prices higher. Aggregate US bonds closed with a 1.54% gain as the 10-year Treasury yield dipped from 4.41% to 4.24%. While the Fed left its benchmark rate unchanged for the fourth consecutive meeting, expectations for rate cuts in the second half of the year increased.
As we wrap up the first half of the year, we’ve seen numerous market conditions in the course of just a few short months. Equity markets flirted with bear territory in early-April, only to soar higher and reach fresh high levels by the end of June. This is why it’s important to have a financial plan and investment strategy in place. Trends and sentiment can shift quickly, but maintaining focus on the bigger picture plan can help mute the short-term market noise while working toward your longer-term goals.
When a cup of coffee in the morning just won’t cut it, the alternative is to go nuclear.
Meta (formerly known as Facebook) signed a 20-year electricity deal with Constellation Energy, the largest nuclear power operator in the US.
The deal comes as Meta’s electricity usage surges amid the AI boom. However, Meta isn’t the only big tech behemoth to look at nuclear options.
Silicon Vally sees it as a clean energy source to help offset their data centers’ growing electricity consumption.
Microsoft recently partnered with Constellation as well to revive an old plant in Pennsylvania, while Alphabet is investing in the development of experimental small modular nuclear reactors.
OpenAI CEO Sam Altman claims an average query only uses 0.34 watt-hours, but tech companies are trying to get ahead of the higher energy demand as more people use AI.
The “World’s Most Experienced Airline” is back in the sky, sort of…
More than three decades after declaring bankruptcy, Pan American World Airways has made an appearance. A Boeing 757, complete with the iconic Pan Am logo, departed from New York as part of a 12-day luxury tour.
The private trip, which had stops in Bermuda, Portugal, France, the UK, and Ireland, had a starting cost of $59,950 per person.
However, Pan Am airline is not fully back. A group of investors purchased the trademark and are using the brand on a chartered plane, renting flight attendants from other airlines.
More plans for the brand are on the horizon, including a hotel and a dinner theater experience.
While some billionaire tech entrepreneurs are looking to the future with rockets, others are looking to take a flight down memory lane.
Broad Market Returns
| Asset Class | 1 Month | 3 Month | YTD | 1 Year |
| S&P 500 (VOO) | 5.17% | 10.87% | 6.12% | 15.05% |
| NASDAQ (QQQ) | 6.39% | 17.77% | 8.19% | 15.79% |
| Large Cap Growth (VUG) | 6.24% | 18.36% | 7.08% | 17.79% |
| Large Cap Value (VTV) | 3.69% | 2.88% | 5.58% | 12.67% |
| Small Cap Growth (VBK) | 5.13% | 10.17% | -0.81% | 11.33% |
| Small Cap Value (VBR) | 3.67% | 5.17% | -0.49% | 9.14% |
| Developed International (VEA) | 3.39% | 13.05% | 20.72% | 18.89% |
| Emerging Markets (VWO) | 5.54% | 9.59% | 12.75% | 16.55% |
| REITs (VNQ) | 0.69% | -0.67% | 2.00% | 10.45% |
| Aggregate Bonds (BND) | 1.52% | 1.23% | 4.05% | 6.10% |
| Corporate Bonds (VCIT) | 1.88% | 2.62% | 5.30% | 8.53% |
| High Yield Bonds (JNK) | 1.99% | 3.80% | 4.76% | 10.24% |
| Long Term Treasuries (VGLT) | 2.48% | -1.51% | 3.23% | 1.52% |
| International Bonds (BNDX) | 0.34% | 2.07% | 2.00% | 6.17% |
Market Health Indicator
The Market Health Indicator (MHI) measures market health on a scale of 0 – 100, analyzing various market segments such as economics, technicals, and volatility. Higher scores indicate healthier market conditions.
Fun Facts
- The word “bookkeeper” is the only unhyphenated English word with three consecutive double letters.
- The world’s largest butterfly, Queen Alexandra’s birdwing, has a wingspan of around 10 inches.
- The longest sentence ever published in a novel is found in Jonathan Coe’s The Rotters’ Club. It contains 13,955 words and spans 33 pages.
- Where do dad’s get all their jokes? Their dad-a-base… Father’s Day is on June 15th!
– The Aspire Wealth Team
Weekly Wake-Up
