2Q25 — An Incredible Recovery
It's difficult to imagine a greater range of emotions than what investors experienced over the prior three-month period. The beginning and end of the second quarter couldn't have been more different. In early April, the S&P 500 was down over 20% from its February all-time high amid an escalating trade war that threatened to upend the global economy.
Equities
Stocks enjoyed a stellar second quarter despite their rocky start. The S&P 500 gained 10.57% during the April-June period, while the tech-heavy NASDAQ 100 rallied an even more robust 17.64%. In Canada, the S&P/TSX Composite Index rose 8.2% in Q2, driven by the outperformance of the Technology, Energy, and Materials sectors.
Key market returns for Q2 2025:
- S&P 500 (US): 57%
- NASDAQ 100 (US): 64%
- S&P/TSX Composite Index (Canada):2%
Bonds
The bond market was more mixed during the second quarter. The benchmark 10-Year US Treasury yield finished June at 4.23%, while the 10-Year Government of Canada bond yield ended June at 3.45%. The US Core Bond Index gained 1.17% for the quarter.
Commodities
Commodities were pulled by opposing forces during the second quarter. Oil prices fell 8.9% from the start of April, while gold added another 5% to its impressive move over the past year.
Conclusion
The stock market made it clear that it was looking past risks and toward a brighter future. With ongoing trade negotiations, monetary policy decisions, and geopolitical tensions, global markets will continue to navigate potential catalysts. However, the breakouts to new all-time highs in the S&P 500 and NASDAQ 100 suggest the market believes the worst is already behind us.
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