June market recap

June market recap


Stocks rallied in June following the resolution of the debt ceiling and contagion from the banking crisis failing to materialize. Small cap stocks led the rally, while cyclically sensitive sectors outperformed more defensive sectors. With most gains this year coming from the largest stocks, more broad market participation was a welcoming sign for investors. U.S. bonds were down slightly for the month with further rate hikes expected later this year.

Economic picture remains mixed

Heading into 2023, many people were predicting that stocks would be down in the first half of the year and that the economy would enter a recession, but neither of those things happened. The economic picture remains mixed, but slowing inflation, a stable labor market, and strong consumer spending have been positives. The Fed paused rate hikes in June, but additional rate hikes will likely be needed later this year to bring inflation down further.

Recent headlines have declared that the bear market is officially over, and a new bull market has begun. Although the economic landscape appears to have improved from a year ago and stocks have rebounded, as of quarter end, global stock prices remain almost 8% below the peak 18 months ago. With gains still concentrated in the largest stocks and central banks still tightening, we think it is premature to call this a new market cycle. With that said, a “soft-landing” seems to be increasing more likely as more time passes.


Lacey Cobb, CFA, CFP®


Lacey Cobb is the Senior Director of Advice Solutions at Empower. A Chartered Financial Analyst® and CERTIFIED FINANCIAL PLANNER™ professional, she contributes directly to management of Empower's Personal Strategy, as well as leading efforts to build and deliver new services. 

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