🌐🔺🔻Developed Market Equities Post Double-Digit Returns In Q2: Cable FX Macro

• The S&P 500 surged in June, climbing 3% and closing at 6,141.02 on June 26, just shy of its all-time high of 6,147.43 set in February. The Nasdaq Composite rose 0.97% to 20,167.91, also nearing a record high, driven by tech and AI momentum, with Nvidia hitting an all-time high.

• Developed market equities delivered 11.6% total returns in Q2 2025, with global growth stocks at 17.7%.

• The CBOE Volatility Index (VIX) dropped 2.5% by June 23, reflecting reduced market fear, though earlier in the year, it hit a high of 52.33 in April due to tariff concerns.

• The rates space saw mixed performances, U.S. Treasuries steepend as appetite for the long-end was softer during the month. Swiss rates underperformed as SNB calls for further easing diminished.

• Commodities underperformed, with a -3.1% return in Q2, weighed down by oil price declines despite positive precious metal returns.

• The dollar index fell 7.1% in Q2, boosting returns for dollar-based investors in international assets. Emerging market currencies strengthened against the dollar, driven by under-positioning in EM assets and expected capital inflows.

• Analysts expected range-bound U.S. stocks in H2 2025, with S&P 500 boundaries between 4,835 (April low) and 6,000. Diversification across asset classes and international markets was recommended due to heightened volatility risks from tariffs, geopolitics, and fiscal policy.