June 2025 Market Recap

June was another positive month for stocks in Canada and the U.S. Despite more uncertainty caused by the situation in the Middle East, the bombing of the Iranian nuclear sites seemed to convince many that the hostilities between Israel and Iran would not escalate into a regional conflict.

In the U.S., the market is dominated both by optimism over tax cuts and trade deals, and by the fact that the U.S. economy continues to power ahead. They created 147,000 jobs in June, according to the latest figures. Top firms in artificial intelligence and other technologies have put the U.S. at the forefront of innovation and investors remain convinced that the future is bright.

In Canada, the economy remains slow but continued hopes for a trade deal between the U.S. and Canada is fueling optimism here. This, combined with tax cuts and the belief that interest rates are likely to come down later this year, has put investors in a good mood.

To keep talks going towards a trade deal, Canada did abandon its digital services tax. The initial read seems to be positive that we managed to restart talks. However, I would caution that we don’t know what they may ask for next.

Mike

Disclaimer:

Information in this article is from sources believed to be reliable, however, we cannot represent that it is accurate or complete. It is provided as a general source of information and should not be considered personal investment advice or solicitation to buy or sell securities. The views are those of the author, Michael Stott, and not necessarily those of Raymond James Ltd. Investors considering any investment should consult with their Investment Advisor to ensure that it is suitable for the investor’s circumstances and risk tolerance before making any investment