The second quarter came to a close with US stocks continuing their positive run and gaining over the month despite mixed economic data making headlines. A stronger than expected jobs report, followed by underwhelming retail sales, home sales, and a cooling inflation report ultimately pushed stocks upward. Despite annual inflation reaching a three-year low, the Federal Reserve (Fed) stood pat at their June meeting and left rates unchanged. Bond yields fell during the month and fixed income performed well due to cooling inflation and the prospect of a rate cut from the Fed later this year.
Internationally, the European Central Bank announced their first rate cut in five years, citing easing inflation and an improved inflation outlook in their decision. On the international stock side, emerging markets shined bright while developed market stocks were down slightly over the month with election uncertainty in the UK and France driving declines. Second quarter earnings reports, global election news and actions of the central banks will have investors’ attention as we head into the third quarter.
| Index Performance | June | 2Q | Year to Date | Trailing 12 Months |
| US Stocks (Russell 3000) | 3.10% | 3.22% | 13.56% | 23.13% |
| International Stocks (FTSE AW ex US) | -0.21% | 0.96% | 5.73% | 12.20% |
| US Bond Mkt. (BBgBarc Int. Gov/Cred) | 0.80% | 0.64% | 0.49% | 4.19% |
| Cash (ICE BofA ML 3-Mo T-Bill) | 0.41% | 1.32% | 2.63% | 5.40% |