End of Month and Quarter

As we wrapped up the end of the month and the end of the quarter, it can be helpful for traders to take time and look back on how markets have performed. The second quarter of 2025 showed extreme volatility in many markets, starting off with the strong broad selloff with the tariff announcement in early April, and as that was walked back the markets have rallied and equity markets are trading near all time high prices, specifically the S&P and Nasdaq. Traders also saw the Fed keep rates unchanged at the June meeting, stating that rate cuts are available if needed depending on the data.

As of now, the CME Fed Watch Tool is pricing in another pause for rates at the July meeting in a few weeks, and the first cut coming at the September meeting at a near 75% probability by 25 basis points. Powell has mentioned that the Fed does not want to be early with rate cuts, and wants to only use the cuts if necessary and as a tool. There will be imperative data looking at GDP, inflation, and jobs that may give traders an idea of the direction the Fed will go on rates for the second half of the year.