Hi All — Brian here. For starters, we hope everyone had a wonderful July 4th holiday and extended weekend with family and friends. We’re more than halfway through the year. Time certainly has a funny way of passing by quicker and quicker each quarter. It was an eventful January through June to say the very least. Last month alone was packed to the brim with events we’ve been monitoring closely with our extended team.

Markets continued their strong run in June, building on May’s momentum with another month of broad gains across major indices. Tech once again took center stage, driven by soaring demand for AI chips and Nvidia’s continued dominance.

But not every growth story had a smooth ride. While the clean energy sector showed surprising resilience globally, domestic policy debates sparked fresh uncertainty for U.S.-based firms.

Meanwhile, inflation remains somewhat sticky, manufacturing continues to contract, and consumer confidence is showing signs of slipping. In this month’s newsletter, we break down what’s powering markets, what’s holding them back, and what it all means for your financial plan. Let’s take a closer look.

As always, we’re here to help so please don’t hesitate to reach out via email or by hitting the button below to schedule a time to speak. For now, let’s dive into what jolted the markets in June.

JUNE MARKET PERFORMANCE

JUNE MARKET SUMMARY

• In June, the major indices continued to roar even after the S&P wrapped up its best May since 1990. The Dow rose 4.3%, the S&P 500 jumped 5.0%, and the Nasdaq Composite surged 6.6%.

• One reason for the climb was the continued strength of AI chipmakers such as Nvidia, which jumped 16.6% in June. The company now makes up 13.1% of the Nasdaq 100 by weight, and about 7% of the S&P 500, so any surge by the semiconductor giant is likely to impact the major indices.

• Manufacturing continues to show weakness, with the sector contracting in June for the fourth consecutive month, according to the Institute for Supply Management.

• The Consumer Confidence Index fell 5.4 points to 93.0 as households increasingly worried about income and labor conditions.

• Inflation continues to be stubbornly high. May's core PCE, the Fed's primary inflation gauge, came in higher than expected at 2.7%. Consumer spending and income show signs of slipping, falling 0.1% and 0.4% for the month, respectively.

ONE BIG THING: CLEAN ENERGY CROSSROADS

Last month, we re-focused the spotlight from tariffs to tech, highlighting how the sector has continued to power markets amid notable uncertainty. June was more of the same as evidenced by the tech-heavy Nasdaq outshining its peers.

But there’s an exception. Clean energy took a hit as Congress debated the “Big Beautiful Bill,” which will significantly scale back tax credits and incentives for renewable energy firms.

Shares of Tesla fell by 7.5% in June, as CEO and erstwhile White House insider Elon Musk exhorted Washington to kill the much-debated piece of legislation. On the chopping block are incentives for renewables, including a $7,500 tax credit for electric vehicles which will officially be terminated on September 30, 2025.

Tesla is a trillion-dollar company, but it’s far from the only clean energy story. The sector employed nearly 3.5 million Americans in 2024, and Florida-based clean energy powerhouse NextEra Energy is now the world’s biggest utility company by market capitalization. The company took a tumble last month as Congress debated the President's signature legislation.

If we look beyond our borders, however, the iShares Global Clean Energy ETF, a basket of clean energy stocks based both in the U.S. and abroad, gained over 3% in June. It’s a reminder that the clean energy transition is global, as the EU launches its €100 billion decarbonization plan. Meanwhile, in 2023 China added more solar panels than the U.S. did in its entire history.

This is a story we’ll continue to watch moving forward and one that felt worth mentioning as the summer days get hotter heading into July.

FEATURED POST

How to Prepare for Interest Rate Shifts

The U.S. Federal Reserve has held interest rates steady since December 2024. Most market observers expect there could be some shifts coming in 2025. But how quickly rates fall, how low they will go, and whether they accompany a soft or hard landing remain to be seen.

Click here to keep reading →

KEEP READING

CLOSING REMARKS

Our team at Griffin Asset Management is here to help you make the most of the opportunities and challenges ahead.

If you have any questions or would like to discuss your financial strategy, please don’t hesitate to reach out.

We’re always available to set up a call and provide the personalized advice you need. Thank you for your continued trust and partnership.