ICM Monthly Outlook - June 2025

May 2025 saw a strong recovery in U.S. equity markets, with the S&P 500 up 6.7% and the Nasdaq soaring 10%, driven by solid earnings and the Magnificent 7. Despite this resilience, year-to-date returns remain negative in Euro, Sterling, and the USD index, as the dollar has depreciated around 9%. Factors such as U.S. policy debates, the proposed tax bill, and concerns over the national debt have impacted the dollar's strength, leading to rising bond yields. Meanwhile, gold and Bitcoin hit new highs, reflecting a shift towards alternative stores of value amid dollar weakness. Markets continue to climb despite ongoing geopolitical and economic challenges, highlighting investor resilience.

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