The Month in a Minute
June was a mixed month for markets, as investors moved away from some of the year's biggest AI winners and looked to other opportunities. Easing tensions in the Middle East across June also helped improve confidence, as Wealthify Plans delivered positive returns across the board, with Ethical outperforming Original.
A changing picture for global markets
After two strong months, the S&P 500 dipped slightly in June, while the tech-heavy Nasdaq came under more pressure, as investors questioned whether the AI rally had run ahead of itself. Even so, both indices still recorded their strongest quarter since 2020.
The shift away from large US technology companies helped lift other markets.
European shares performed particularly well, with Germany's DAX reaching record highs, while the UK's FTSE 100 delivered solid gains, rising to its highest level in three months. Smaller companies and healthcare stocks gained ground too, as investors looked beyond this year's biggest winners.
Meanwhile, concerns over the conflict in the Middle East eased, as progress towards a lasting agreement helped oil prices fall back and improve market sentiment during the month.
In the US, the Federal Reserve held interest rates steady at its first meeting under new Chair, Kevin Warsh. Markets are now less certain about the path ahead, with inflation remaining a concern and signs of a cooling jobs market adding to the uncertainty.
For Wealthify customers, June was another reminder of the value of diversification.
While some of the market's strongest performers lost momentum, gains elsewhere helped all Plans deliver positive returns, with Ethical outperforming Original.
With investing, your capital is at risk. Please remember the value of your investments can go down as well as up, and you could get back less than invested.
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