S&P 500 rallies 5% in June to close month at record high

The S&P 500 extended its now two-and-a-half-month rally through June to end the month at a record high.

The large-cap index climbed 5.0% in June, distancing further from a market sell-off in early April triggered by US tariff announcements, according to S&P Global Market Intelligence data. The Dow Jones Industrial Average also gained 4.3% in June, while the small-cap focused Russell 2000 exceeded its large-cap index peers with a 5.3% gain since the end of May.

Equity markets have surged since the US delayed the implementation of wide-ranging tariffs on most global trading partners until at least mid-July to allow time for international trade negotiations. Market watchers are now awaiting further clarity on the direction of US trade policy as the July deadline nears.

"If we get to July 8 or 9 and trade discussions fail and tariffs revert to that previous high level, there's a clear risk of a market pullback similar to April," said Nic Millikan, managing director of investments for private markets investment platform Allocate, in an interview. "On the other hand, if the trade negotiations are extended or finalized, the equity markets could continue to grind higher given that investor positioning today feels less panicked than it did during that April decline."

Sectors

Most of the S&P 500's 11 sectors posted gains in June, except for real estate and consumer staples.

IT stocks performed the best in June, with the sector climbing nearly 10%. Within the sector, 59 of the 69 constituent stocks rose, with the largest gains recorded by Oracle Corp. and Micron Technology Inc.

The consumer staples sector dropped 2.21% during the month, the steepest decline among the index's sectors. Of the sector's 38 constituents, 25 posted a loss. Wine and spirits company Brown-Forman Corp. led the sector's losses, down nearly 20%.

Consumer-exposed companies may face ongoing headwinds as consumers face rising credit delinquency and report weak sentiment in surveys.

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Largest gains, drops

Coinbase Global Inc. was the best-performing S&P 500 stock in June, jumping over 40% from the end of May. The share price was buoyed by expectations that the cryptocurrency exchange company would benefit from potential US cryptocurrency regulation introduced through the proposed GENIUS Act if passed by Congress. Coinbase and similar companies are also likely to experience an ongoing tailwind following the successful IPO of stablecoin issuer Circle Internet Group Inc.

Fortive Corp. share price plunged over 27% on June 30 and has been down over 25% since the end of May.

The industrial technology developer warned in a June 30 statement that its second-quarter revenue would be pressured by tariff-related costs and economic uncertainty. In the same statement, it announced the completed spinoff of its precision technologies segment into a new standalone company, Ralliant Corp.