{"id":17727,"date":"2025-07-10T19:22:38","date_gmt":"2025-07-11T02:22:38","guid":{"rendered":"https:\/\/canary.kcprod.info/blog\/?p=17727"},"modified":"2025-07-10T19:22:40","modified_gmt":"2025-07-11T02:22:40","slug":"june-july-market-investor-trends","status":"publish","type":"post","link":"https:\/\/canary.kcprod.info/blog\/june-july-market-investor-trends\/","title":{"rendered":"Summer 2025 Market & Investor Trends"},"content":{"rendered":"\n

Financial markets are always unpredictable, and that\u2019s been especially true so far in 2025. After early April volatility related to early tariff announcements that included the biggest single-day drop<\/a> in the S&P 500\u00ae since 2020, the US stock market rebounded and ended the first half of the year at an all-time high. Then, just a week later on July 7, US stocks ended the day down (along with both European and international stocks) as investors continued to digest changing expectations around tariffs. While there\u2019s no way to predict what the future holds, it\u2019s certainly possible that markets will continue to be somewhat volatile in the coming weeks as more trade announcements are made ahead of August 1 (when reciprocal tariffs are now expected to go into effect). But despite a new bout of tariff-driven market uncertainty, Wealthfront clients appear to be taking all of this change in stride. Here\u2019s how they\u2019re responding:<\/p>\n\n\n\n

-Clients are taking the long view:<\/strong> There\u2019s been a lot of media commentary leading up to the initial tariff deadline on July 9. Still, deposits into Automated Investing Accounts have remained positive over the past couple of weeks, despite the market being down on July 7 due to tariff news, suggesting that investors are maintaining a long-term perspective and avoiding the temptation to stop investing and wait for markets to stabilize.<\/p>\n\n\n\n

-Optimism about the US stock market rose in late June and early July:<\/strong> In a survey we fielded from June 25 to July 6, 63% of respondents indicated they felt either somewhat (50%) or very (13%) optimistic about the US stock market over the next six months. This is up from 55% in late May when 46% were somewhat optimistic and 9% were very optimistic. And for the first time since we began running these surveys, the number of clients who said they believe the US stock market will rise in the next six months was greater than the number of clients who said the market will decline. It\u2019s worth noting that the survey concluded before July 7, when stocks started to fall, but it\u2019s still the most optimism we\u2019ve measured on this point since we began fielding these surveys earlier this year.<\/p>\n\n\n\n

-What renewed market uncertainty means<\/strong>: Last week, the market was up. Early this week, it was down, influenced by new tariff announcements with Japan and South Korea. In the weeks ahead, it\u2019s possible that other potential trade deals will have similar short-term effects. Additionally, the next Federal Open Market Committee meeting will be held later this month (July 29-30). The federal funds rate is not expected to change,<\/a> but Fed Chair Jerome Powell\u2019s remarks following renewed tariff announcements will be closely watched and may impact market behavior.<\/p>\n\n\n\n

But if you\u2019ve got a long-term time horizon for your investments, you may be glad to hear that we don\u2019t think you need to follow the day-to-day (or week-to-week!) movement of the market all that closely. No one knows for sure what will happen next, but history tells us that the US stock market has generally trended up over the long run. We think it\u2019s smart to keep focusing on what you can control<\/a>: minimizing fees, taking steps to lower your taxes (including using tax-loss harvesting in periods of volatility), and managing risk through diversification.<\/p>\n\n\n\n

-Further reading on tariffs & market volatility:<\/strong> If you\u2019re interested in reading more about best practices for investing through periods of volatility and navigating tariff-fueled uncertainty, we recommend revisiting two pieces of content from the Wealthfront blog:<\/p>\n\n\n\n