A Record-Breaking Quarter

The S&P 500 just wrapped up an incredible second quarter, up more than 10%.

That’s the best quarterly performance since 2023, and it’s even more impressive considering how rough things looked earlier in the year.

Both the S&P 500 and the Nasdaq hit new all-time highs at the end of June.

What’s driving this? Strong earnings, excitement about AI, and a sense that the economy is holding up better than many expected.

Fastest Recovery on Record

It’s hard to believe, but the market bounced back from a 20% drop faster than ever before.

Back in April, stocks were in bear market territory (for a brief moment), but by the end of June, they had not only recovered but set new records.

This kind of quick turnaround is rare, but history shows that nothing is impossible in the markets.

All-Time Highs Are Bullish

So far in 2025, the S&P 500 has already hit six new highs, and if history is any guide, we’ll probably see even more before the year is out. (No year has ever had only six new highs.)

Optimism Is Back

The latest AAII investors survey shows that 45% of investors are feeling bullish about where things are headed over the next six months. That’s a pretty big jump from just a few weeks ago.

July’s Winning Streak

July has a reputation for being a great month for stocks.

In fact, the S&P 500 has gone up every July for the past ten years!

Of course, just because something happened in the past doesn’t mean it’s guaranteed to happen again. But it never hurts to have the odds on your side.

The Bottom Line

The market has been doing really well lately.

Strong earnings, new exciting technologies, and steady economic data have all helped push stocks higher. And history shows that these kinds of good runs can last for a while.

That said, it’s a good idea to be a bit more cautious.

While July is likely going to be another solid month, we are also moving into August and September. September especially tends to be the weakest month of the year.

At the same time investor are feeling (too) confident, the deadline for Trade Deals is coming up fast, and Elon continue to battle it out with the president.

So, you might want to think about reducing some of your riskier positions. It doesn’t hurt to keep some cash around so you can jump on new opportunities if the market takes a pause.

But generally, there is no reason to believe this bull market will stop anytime soon. We’re still in the early innings of a new bull market powered by AI.