Avantax Market Update - June 2025

Avantax Market Update for June reflects on May's performance and future outlooks.
- Market Recovery in May: After a turbulent April, the S&P 500 and Russell 2000 indices saw significant rebounds, with increases of over 6% and 5%, respectively, bringing the S&P 500 into positive territory for the year.
- Bond Market Challenges: Fixed income investors faced difficulties due to rising interest rates, with the yield on the 10-year Treasury note increasing from 4.23% to around 4.4%. The taxable bond index ended May lower by about 0.7%.
- Trade Policy Uncertainty: Ongoing trade policy changes and tariffs have driven market volatility. The document suggests that clarity on trade issues may take time, leaving businesses in a state of uncertainty.
- Positive Corporate Outlook: Despite challenges, corporations are positioned strongly, with low default rates for high yield bonds and projected earnings growth for S&P 500 companies at 13% for Q1. Economic growth is projected to rebound to around 4.6% for Q2.
Watch the June 2025 Avantax Market Update on YouTube.
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