Dave's Monthly Market Update - June 2025

Greetings!

As June begins, markets continue to navigate a complex landscape shaped by trade policy shifts, an uncertain economic and earnings outlook. 

• Trade Policy in Flux. The May 28 court ruling blocking most of President Trump’s tariffs has introduced some additional uncertainty for investors. The administration has other legal avenues to pursue if needed and will likely be able to maintain tariffs at levels consistent with prior expectations.

• Solid Earnings Results. First quarter earnings season delivered broadly positive results, with nearly 80% of companies exceeding analysts’ expectations. Large-cap technology companies (the so-called Magnificent Seven) drove nearly half of the 13% S&P 500 earnings per share growth.  

• Stock Valuations May Reflect Too Much Optimism. It would help investor sentiment if trade uncertainty cleared up so the focus could shift toward the tax bill currently in Congress. Whatever your view is on tariffs, there is no doubt that tariff revenue — if preserved — will be helpful in getting the 2017 tax cuts extended.  

As we move further into the summer months, key catalysts to watch include inflation data, further developments in trade negotiations, central bank commentary, and progress on the tax bill. Meanwhile, corporate America’s sales and profit margins will garner increasing support from artificial intelligence in the quarters and years ahead. We encourage long-term investors to watch for opportunities to add equities on dips, though periodic bouts of market volatility are to be expected until there is greater clarity on trade. 

Thank you for your continued support, I am grateful for our relationship. Let’s stay healthy and positive, and please contact me if you have questions at 651-464-2664.

Sincerely,

 David E. Purdy

Founding Partner

Wealth Management Midwest, Inc.

o: 651.464.2664 | david.purdy@lplfinancial.com 

www.wealthmanagementmidwest.com

Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC

Important Information 

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.  

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results. 

All data is provided as of June 4, 2025. 

Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities.

All index data from FactSet. 

The Standard & Poor’s 500 Index (S&P500) is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.  

Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price. 

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk. 

Past performance does not guarantee future results. 

Asset allocation does not ensure a profit or protect against a loss. 

This research material was prepared by LPL Financial, LLC. 

Not Insured by FDIC/NCUA or Any Other Government Agency 

Not Bank/Credit Union Guaranteed 

Not Bank/Credit Union Deposits or Obligations 

May Lose Value