Commodities shine, crypto splits, and defence stocks soar—while IT takes a hit. Here’s your 6-month snapshot of what’s hot (and what’s not) in markets 👇#ETNOW #Markets #Crypto #Commodities #StockMarket pic.twitter.com/K7uMG59G2A
— ET NOW (@ETNOWlive) July 1, 2025
The S&P 500 endured a tumultuous first half of 2025, marked by a significant drop and a resilient comeback, emphasizing the persistently bullish sentiment of investors. In April, the benchmark index plummeted over 19% from its previous all-time high; however, it rebounded to new records just two months later. Despite facing numerous challenges, such as geopolitical tensions and tariff impacts, the market has largely overcome these obstacles.
Investors have consistently seized buying opportunities during market dips, propelling stock prices higher.
Indices and assets hover near peak levels with S&P 500 and Nasdaq cruising at all-time highs👇#Markets #Bitcoin #Gold #Nifty50 #DowJones pic.twitter.com/cmdJn3MvoB
— ET NOW (@ETNOWlive) July 1, 2025
Joe Mazzola, head of trading and derivatives strategy at Charles Schwab, commented on this trend: “The market still does tend to have a bullish sentiment to it. So I think you’re seeing investors looking for those opportunities on pullbacks to buy in.”
U.S. stocks finished Q2 with the best quarterly gain since Q1 2023. Don't be fooled by the illusion. The U.S. dollar suffered its worst first half of a year since 1973. So while the S&P is up 5.5% so far this year, in terms of euros it's down 7.5%, and in gold it's down over 20%.
— Peter Schiff (@PeterSchiff) June 30, 2025
One of the most striking displays of market resilience occurred on April 2, when the S&P 500 fell more than 10% in three days following President Trump’s “Liberation Day” tariff announcement.
JUST IN 🚨: S&P 500 hits new all-time high for the 2nd consecutive day and has now traded green for 6 consecutive days 🥳📈🫂 pic.twitter.com/NSSz6IKwVL
— Barchart (@Barchart) June 30, 2025
Remarkably, within a month, the index had bounced back above pre-announcement levels, buoyed by optimism surrounding Trump’s subsequent tariff delays. Retail investors played a crucial role in this rebound, with data from VandaTrack Research showing a record level of inflows back into stocks. Steve Sosnick, chief strategist at Interactive Brokers, explained the sentiment among traders: “[There’s a] certain feeling of invincibility that’s crept into the mindset of a lot of traders, a lot of active investors.
bullish sentiment drives market recovery
And it’s understandable because why wouldn’t you? I mean every dip…
can be considered a buying opportunity.”
Last week, the S&P 500 closed at a new record high, signifying a dramatic recovery after the steep April drop. Many Wall Street analysts, including Fundstrat’s global head of technical strategy Mark Newton, anticipate further gains. Newton noted the pressure on money managers, who are often benchmarked to large indexes like the S&P 500, to outperform the market and secure year-end bonuses.
“At the end of the day, the key for investors is always how any headwind will impact the economy and the outlook for corporate profits,” Newton said. While estimates for these metrics fell earlier in the year, the growth outlook for both has improved. Morgan Stanley’s chief investment officer, Mike Wilson, remains optimistic about the market’s future.
In a recent note to clients, Wilson, who forecasts the S&P 500 will reach 6,500 by the end of 2025, stated: “Equity markets have been resilient since bottoming in April, and the rally has been more fundamentally-driven than many appreciate. While there could be some consolidation during [the third quarter], we remain bullish on a 6-12 month horizon as [earnings per share] tailwinds expand, and the market has line of sight to Fed cuts.”
The continued upbeat perspective of strategists and analysts suggests that, despite the turbulence, the market’s bullish sentiment is likely to persist as we head into the second half of 2025.
