2025 Q2 | Market Commentary

Summary

U.S. large-cap stocks ended the second quarter up 10.9%, marking a new record high. U.S. small-cap stocks gained 8.5%, and U.S. intermediate-term bonds ended the quarter up 1.2%.
The Big Beautiful Bill includes permanent Tax Cuts and Jobs Act extensions, tax relief for middle-income earners, and a new tax cut on tipped income and overtime.
As the bill moved through Congress, the all-important Treasury market remained calm and credit spreads held steady, as markets suggested comfort with the ramifications.
Should yields rise, we would look to credit spreads for that market’s view on whether the rise in interest rates ends the economic and fiscal fireworks.