Financial Focus Family Updates
We are excited to congratulate Shannon McAtamney and her family on the arrival of their beautiful baby boy, Asher Roen McAtamney, who was born on Wednesday, May 20th. Asher joins two proud big sisters, and we couldn't be happier for the McAtamney family as they begin this exciting new chapter. Please join us in congratulating Shannon and wishing their family all the best!
Staying Vigilant Against Financial Scams
Unfortunately, financial scams continue to become more sophisticated, and we've recently heard from several members of our Financial Focus family who have encountered suspicious phone calls, emails, and text messages. A few simple reminders can go a long way in protecting your personal information: financial institutions will never ask for your online username or password; never trust caller ID or email addresses alone, since scammers can make them appear legitimate; never send money via wire transfer, ACH, or gift cards because of an unexpected phone call, email, or text; and the Social Security Administration will not call, text, or email you asking for immediate payment or threatening to suspend your Social Security number. When in doubt, give our office a call before responding — we're always happy to help you verify whether something seems legitimate.
Despite heightened geopolitical tensions, tariff uncertainty, and persistent inflation concerns, markets continued to move higher. Investor confidence improved as fears surrounding global trade and energy markets eased, corporate earnings remained strong, and the U.S. economy demonstrated continued stability.
Markets Rebound to New Highs
After a challenging start to the year, equity markets staged an impressive recovery during the second quarter. The S&P 500 and NASDAQ posted their strongest quarterly gains since 2020, while the Dow Jones Industrial Average recorded its best quarter since 2022. Small-cap stocks also participated in the rally, reflecting broader market strength beyond just the largest technology companies. Technology and communication services once again led the market, driven by continued enthusiasm surrounding artificial intelligence. Industrials, financials, health care, and real estate also posted solid gains as investor sentiment improved throughout the quarter.
Geopolitical Risks Ease
Early in the quarter, investors faced significant uncertainty as tensions in the Middle East and ongoing tariff concerns weighed on markets. Rising oil prices and concerns over global shipping routes initially increased volatility and renewed inflation fears. By June, however, peace talks between the United States and Iran, along with a ceasefire that reopened the Strait of Hormuz, helped reduce many of those concerns. Energy prices declined sharply from their spring highs, easing pressure on consumers and supporting a broader recovery in financial markets.
The Federal Reserve Remains Patient
The Federal Reserve left interest rates unchanged at 3.50%–3.75% throughout the quarter, maintaining its cautious approach as policymakers balanced resilient economic growth against inflation that remains above its long-term target. Although expectations for immediate rate cuts faded as inflation proved more persistent than anticipated, the Fed continues to evaluate incoming economic data before making further policy decisions.
Economic Picture: Stronger Than Expected
The U.S. economy continued to show resilience throughout the second quarter. Gross domestic product expanded at a 2.1% annualized pace, while the labor market remained healthy with unemployment holding at 4.3%. Employment growth exceeded expectations during both April and May, demonstrating that businesses continue to hire despite higher borrowing costs. Inflation remained elevated, largely driven by higher energy prices earlier in the quarter. While inflationary pressures have moderated from their peak, price stability continues to be one of the Federal Reserve's primary challenges.
Corporate Earnings Continue to Impress
Corporate America remained a bright spot during the quarter. Following exceptionally strong first-quarter earnings growth, analysts continue to expect another quarter of healthy profit expansion. Companies have generally demonstrated an ability to navigate higher costs and economic uncertainty while maintaining strong profitability, particularly within technology and communication services.
International Markets Recover
International markets also delivered strong results during the second quarter as easing energy costs and continued strength in artificial intelligence-related companies boosted investor confidence. Developed markets in Europe experienced their strongest quarterly performance since late 2020, while Asian markets posted their best quarterly gains in nearly two decades. Although China's recovery remained more modest, global markets broadly benefited from improving economic sentiment and lower geopolitical risk.
| Market / Index | 2025 Close | As of 6/30 | Monthly Change | Quarterly Change | YTD Change |
|---|---|---|---|---|---|
| DJIA | 48,063.29 | 52,319.20 | +2.52% | +12.90% | +8.85% |
| NASDAQ | 23,241.99 | 26,213.72 | -2.81% | +21.41% | +12.79% |
| S&P 500 | 6,845.50 | 7,499.36 | -1.06% | +14.87% | +9.55% |
| Russell 2000 | 2,481.91 | 3,024.37 | +3.60% | +21.15% | +21.86% |
| Global Dow | 6,169.34 | 6,823.89 | -1.09% | +9.60% | +10.61% |
| Fed. Funds Target Rate | 3.50%–3.75% | 3.50%–3.75% | 0 bps | 0 bps | 0 bps |
| 10-Year Treasuries | 4.16% | 4.41% | -4 bps | +10 bps | +25 bps |
| US Dollar – DXY | 98.26 | 101.15 | +2.24% | +1.29% | +2.94% |
| Crude Oil – CL=F | $57.46 | $70.05 | -20.28% | -30.99% | +21.91% |
| Gold – GC=F | $4,323.90 | $4,026.50 | -11.95% | -14.34% | -6.88% |
Sources: WSJ Market Data Center, U.S. Treasury, U.S. EIA, Bloomberg, Oanda. All data as of June 30, 2026.
In Summary
The second quarter of 2026 demonstrated how quickly market sentiment can shift. While geopolitical tensions, inflation concerns, and trade uncertainty created periods of heightened volatility, improving global conditions, resilient corporate earnings, and continued economic growth ultimately fueled a strong market recovery. Looking ahead, investors will continue watching inflation trends, Federal Reserve policy, corporate earnings, and geopolitical developments as key drivers of market performance during the second half of the year. As always, maintaining a disciplined, long-term investment approach remains the most effective strategy through changing market environments.
As always, we'll continue monitoring these developments and are here to discuss how they may impact your financial plan.
Your dedicated Financial Focus Team
Data sources: Economic: Based on data from U.S. Bureau of Labor Statistics (unemployment, inflation); U.S. Department of Commerce (GDP, corporate profits, retail sales, housing); S&P/Case-Shiller 20-City Composite Index (home prices); Institute for Supply Management (manufacturing/services). Performance: Based on data reported in WSJ Market Data Center (indexes); U.S. Treasury (Treasury yields); U.S. Energy Information Administration/Bloomberg.com Market Data (oil spot price, WTI Cushing, OK); www.goldprice.org (spot gold/silver); Oanda/FX Street (currency exchange rates). News items are based on reports from multiple commonly available international news sources (i.e., wire services) and are independently verified when necessary with secondary sources such as government agencies, corporate press releases, or trade organizations. All information is based on sources deemed reliable, but no warranty or guarantee is made as to its accuracy or completeness. Neither the information nor any opinion expressed herein constitutes a solicitation for the purchase or sale of any securities, and should not be relied on as financial advice. Forecasts are based on current conditions, subject to change, and may not come to pass. U.S. Treasury securities are guaranteed by the federal government as to the timely payment of principal and interest. The principal value of Treasury securities and other bonds fluctuates with market conditions. Bonds are subject to inflation, interest-rate, and credit risks. As interest rates rise, bond prices typically fall. A bond sold or redeemed prior to maturity may be subject to loss. Past performance is no guarantee of future results. All investing involves risk, including the potential loss of principal, and there can be no guarantee that any investing strategy will be successful.
The Dow Jones Industrial Average (DJIA) is a price-weighted index composed of 30 widely traded blue-chip U.S. common stocks. The S&P 500 is a market-cap weighted index composed of the common stocks of 500 largest, publicly traded companies in leading industries of the U.S. economy. The NASDAQ Composite Index is a market-value weighted index of all common stocks listed on the NASDAQ stock exchange. The Russell 2000 is a market-cap weighted index composed of 2,000 U.S. small-cap common stocks. The Global Dow is an equally weighted index of 150 widely traded blue-chip common stocks worldwide. The U.S. Dollar Index is a geometrically weighted index of the value of the U.S. dollar relative to six foreign currencies. Market indexes listed are unmanaged and are not available for direct investment.