U.S. Markets

Q2 began with fresh U.S. tariffs under President Trump that rocked global markets. By April, the S&P 500 was down nearly 18%, and Nasdaq had dropped over 23%. The VIX—Wall Street’s fear gauge—spiked to levels not seen since the early pandemic era.

Safe-haven assets like gold and silver surged, driven by central banks aggressively stocking up. The Federal Reserve’s delay in rate cuts, combined with rising Middle East tensions, painted a gloomy picture, with inflation fears and downward earnings forecasts clouding the outlook.

But the mood turned sharply in late Q2. A ceasefire between Israel and Iran, breakthroughs in U.S.-China trade talks, and a pause on further tariff hikes helped stabilize sentiment. Both the S&P 500 and Nasdaq ended June at new all-time highs, reversing losses and posting over 5% gains for the year so far.

European Markets

Europe’s benchmarks followed a similar path. The FTSE 100 and Germany’s DAX reached record levels by mid-year, while indices in France, Italy, and Spain narrowed their gap to all-time highs. The European Central Bank maintained a cautious stance on rate policy amid better-than-expected GDP growth.

Asian Markets

In Asia, China and the U.S. finalized a trade agreement from the Geneva summit, helping boost Chinese markets in Q2. The People’s Bank of China (PBOC) noted improving sentiment despite persistent deflation concerns and weak domestic demand. Japan’s markets also posted positive returns, aided by steady policy rates and firming export data.