Enjoy the Fastest Market Rebound: Stay Sharp in the Financial Game

June 30, 2025

It’s hard to believe we’ve reached the end of June. Summer is in full swing, the Fourth of July is right around the corner, and we’re officially halfway through the year. So far in 2025, markets had plenty to react to — from major interest rate changes and shifting global trade policies to ongoing armed conflicts in several regions. These developments created waves of uncertainty, but the U.S. market continues to show remarkable resilience. Long-term investors who stayed the course are once again being rewarded as markets push to new all-time highs.

Reaching New Heights

On Friday, June 27th, the U.S. stock market hit new record levels, with both the S&P 500 and Nasdaq Composite Index reaching all-time highs. This stands in sharp contrast to just a few months ago, when the Trump Administration’s “Liberation Day” tariff announcement on April 2nd sent markets into a steep decline. The sweeping tariff proposals raised concerns about slower economic growth and higher inflation in the U.S. The resulting selloff was both sharp and swift, with the S&P 500 nearly entering bear market territory — a drop of 20% or more — by April 8th.

Since then, a pause on the most aggressive “reciprocal” tariffs, coupled with ongoing negotiations to eliminate them, fueled a rebound in equity prices. The S&P 500 gained nearly 10% in the second quarter, and just 86 days after the tariff announcement, the market reached its new all-time high — the fastest recovery in history following a decline of 15% or more.
 

Moving Forward

As the rest of 2025 plays out, the first half of the year serves as a powerful reminder that staying calm and committed to a long-term investment plan can pay off. While the recent market rebound is historic, key uncertainties remain. The Trump Administration’s July 9th deadline to finalize or revoke the paused “reciprocal” tariffs could trigger fresh market volatility, and ongoing global conflicts continue to weigh on the outlook for international trade and stability. Still, history shows investing at or near all-time highs does not hurt long-term returns. In fact, markets often reach new highs in clusters, and staying invested during these periods can be a powerful driver of long-term growth.

Maintaining a well-diversified portfolio and staying invested through short-term noise remains the most reliable path to long-term success. So, as summer continues and the headlines keep coming, take time to enjoy the season — knowing your investment strategy and team are working hard behind the scenes to keep you on track. If you have any questions about your next steps or what the rest of 2025 might bring, don’t hesitate to reach out to your advisor.  Your financial success matters to us.