Monthly Observations - June 2025

By Chris Zaccarelli

Monthly Observations

The S&P 500 rose 4.8% in May, recovering all of April's losses and returning to positive territory for the year. The MSCI All Country World index also rose 4.5% in May, improving its year-to-date return to 1.2%. The Bloomberg BarCap U.S. Aggregate Bond index rose 0.8% during May, which increased its year-to-date gain to 3.4%.

Markets bounced back strongly in May as the US and China agreed to a 90-day truce in their trade war, reducing tariffs significantly from their peak levels. The pause in the trade war and positive economic data helped to restore investor confidence and the stock market recovered all of its April losses.

Monthly Highlights

US and China agreed to a 90-day truce in their trade war

Markets recovered all of April's losses as investor confidence returned

Economic data remained positive despite tariff uncertainty

News in Review

Below are some stories that caught our eye this past month. To learn more, follow the links to the full article.

US and China Reach Trade Truce, Cutting Tariffs for 90 Days

The US and China agreed to a 90-day pause in their trade war, with both sides agreeing to significantly reduce tariffs. The US reduced tariffs on Chinese goods from 145% to 30%, and China reduced tariffs on US goods from 125% to 10%. The truce gave both sides time to negotiate a more comprehensive trade deal.

Stock Market Roars Back, Erasing April Losses

The stock market had one of its best months in years as the US-China trade truce removed a major source of uncertainty for investors. The S&P 500 rose 4.8% in May, recovering all of the losses from April and returning to positive territory for the year. Technology stocks led the recovery as investors became more optimistic about the global economic outlook.

US Economy Adds More Jobs Than Expected in April

The US economy added more jobs than expected in April, despite the tariff uncertainty. The unemployment rate remained low and wage growth continued at a healthy pace, suggesting that the economy remained resilient in the face of the tariff headwinds. The strong jobs report helped to ease recession fears.

Ancient Roman Mosaic Discovered During Construction in Italy

A remarkably well-preserved Roman mosaic was discovered during construction work in northern Italy. The mosaic, which dates back to the 1st century AD, depicts scenes from Roman mythology and daily life. Archaeologists say it is one of the finest examples of Roman mosaic art ever found in the region and will be carefully excavated and preserved.

DISCLOSURES

Securities offered through LPL Financial, Member FINRA/SIPC. Blackbridge Financial is another business name of Independent Advisor Alliance, LLC. All investment advice is offered through Independent Advisor Alliance, LLC, a registered investment adviser. Independent Advisor Alliance, LLC is a separate entity from LPL Financial. The opinions expressed in this material do not necessarily reflect the views of LPL Financial.

This newsletter was written and produced by the Independent Advisor Alliance, LLC. Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. The views stated in this letter should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results.

S&P 500 INDEX: The Standard & Poor's 500 Index is an unmanaged, capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.

NASDAQ 100 INDEX: The Nasdaq 100 Index is an unmanaged, capitalization-weighted index of the largest 100 non-financial stocks traded on the Nasdaq market. Unlike the S&P 500 it does not represent all major industries and may be more volatile than more broadly constructed indices.

MSCI ACWI INDEX: The MSCI ACWI captures large- and mid-cap representation across 23 developed markets (DM) and 24 emerging markets (EM) countries. With 2,495 constituents, the index covers approximately 85% of the global investable equity opportunity set.

Bloomberg U.S. Aggregate Bond Index: The Bloomberg U.S. Aggregate Bond Index is a broad-based index of the U.S. investment-grade, fixed-rate bond market, including both government-related and corporate securities and mortgage-backed and asset-backed securities.

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