Stocks rebounded over 11% in Q2 led by technology, global markets outperformed US
From Morningstar: 2025-07-02 06:47:00
Stocks surged more than 11% in Q2 after a tariff-induced dip in April. Technology stocks led the rally, with international markets outperforming the US. Volatility increased in the bond market due to deficit concerns. The Fed kept interest rates steady, but a rate cut is anticipated in September. Growth stocks excelled over value stocks. Bond markets saw gains despite concerns about inflation and the fiscal deficit. Stocks rebounded after Trump’s tariff announcement, signaling the start of a new bull market. Tech stocks fueled the market recovery. Despite concerns over economic growth and inflation, robust earnings and a healthy economy provided some optimism. Growth stocks outperformed value stocks. Technology stocks had a strong rally in Q2, along with communication services and consumer cyclicals. Industrials also rallied, while healthcare and energy stocks declined. Dividend stocks made a comeback, but did not outpace the broader market. Global markets saw gains, with European, Canadian, and Japanese stocks outperforming the US. Chinese markets lagged behind. The Federal Reserve maintained rates amid tariff uncertainties, with traders expecting a rate cut in September. Bond markets experienced volatility as yields climbed higher. The yield curve steepened in Q2, indicating higher yields for longer-dated bonds. Stock market volatility rose due to trade policy and geopolitical tensions, while bond market volatility increased over fiscal concerns. Cryptocurrency prices rebounded in Q2, with Bitcoin and Ether prices rising significantly. Gold prices climbed 5%, oil prices fell 8.9%.
Read more at Morningstar: 13 Charts on Q2’s Major Market Rebound