Despite Volatility, Equities Post Gains in First Half of 2025

Despite tariff concerns, geopolitical risks, and inflation worries, equity markets posted positive returns in the first half of the year amid decreasing policy uncertainty, strong earnings, and a resilient—although slowing—economy. The S&P 500 Index recovered dramatically within the period, rebounding over 20% since the April 8th tariff-related lows. International developed equities (+20.7%) were the best performers, followed by emerging market equites (+12.8%) and US growth (+8.8%). Bonds mostly fared well as 7-10 year US Treasuries gained 5.2%, high yield credits rose 4.8%, and Treasury Inflation Protected Notes were up 4.7%. Aside from crude oil (-3.2%), commodities posted positive returns as gold increased 25.9%, silver was up 24.6%, and broad-based commodities rose 5.2%.