Market commentary
Global markets power through persistent volatility.
Global equities, as measured by the MSCI ACWI Index, rose sharply during the second quarter of 2025, as the administration of U.S. President Donald Trump announced progress on trade deals with major trading partners, most notably China.
Global markets power through persistent volatility.
The U.S. broad-market S&P 500 Index and the tech-heavy Nasdaq Composite Index climbed 10.9% and 18.0%, respectively, for the quarter, closing the period at record highs.
Emerging markets outperformed developed markets in the second quarter. The Latin America region (excluding Brazil) was the top performer within the emerging markets for the quarter due mainly to strength in Mexico. Hungary led the robust performance in Eastern Europe. Conversely, the Saudi Arabia market lost ground during the period. The Pacific region and the European Union countries were the strongest performers within the developed markets for the quarter. Hong Kong and Australia led the rally in the Pacific markets, while the Netherlands and Spain were the main contributors to the upturn in European Union stocks. The Nordic countries recorded positive returns for the period, but were the primary developed-market laggards.1
Global fixed-income assets, as measured by the Bloomberg Global Aggregate Bond Index, gained 4.5% (in U.S. dollars) for the second quarter. High-yield bonds led the U.S. fixed-income market, followed by investment-grade corporate bonds and U.S. Treasury securities. Mortgage-backed securities (MBS) recorded losses during the quarter. U.S. Treasury yields were mixed across the yield curve. Yields on 2-, 3-, and 5-year Treasury notes dipped by corresponding margins of 0.17%, 0.21%, and 0.17% to 3.89%, 3,89%, and 3.96%, respectively, while the 10-year Treasury yield edged up 0.1% to 4.24%. The yield curve inverted (3-month yields exceeded 10-year yields) during the quarter.2
Global commodity prices, as represented by the Bloomberg Commodity Index, were down 3.1% in the second quarter. Oil prices fell sharply in June after moving higher earlier in the quarter, as the announcement of a ceasefire between Israel and Iran eased geopolitical concerns, and investors anticipated a rise in inventories globally. Spot prices for West Texas Intermediate (WTI) and Brent crude oil prices fell 8.9% and 10.7%, respectively, during the quarter. The 5.0% rise in the gold price over the period was attributable to an increase in demand for safe-haven assets spurred by the Israel-Iran military conflict and continued central bank purchases. The New York Mercantile Exchange (NYMEX) natural gas price fell 15.2% in response to a decline in global demand and increasing inventory in the U.S. The 0.2% uptick in the wheat price for the quarter resulted mainly from forecasts that unusually warm summer temperatures and extreme weather could reduce stockpiles in North America, Asia, and Europe.
All references to performance are in US dollar terms unless otherwise noted. For professional clients only. Not suitable for retail distribution.
1 All equity market performance statements are based on the MSCI ACWI Index.
2 According to the U.S. Department of the Treasury. As of 30 June 2025.
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