June closed out the second quarter with mixed performance across asset classes. Among broad equity indexes, emerging market equities led, gaining 4%, with strong contributions coming from Taiwan, India, and technology companies. Similarly, U.S. equities returned 3.6%, with large-cap growth stocks driving the gains. International developed equities fell 1.6% due to volatility from French elections and resulting uncertainty pulling down the broader region.

U.S. equity sectors also saw mixed results for the month, with about half of the sectors seeing gains and half seeing losses. Technology-heavy growth sectors performed best as the artificial intelligence theme continued to excite investors. Information technology led sector performance with a gain of 9.3%. Utilities reversed course following a strong May and fell 5.5%. Size and style performance were much more divergent in June, with large-cap growth equities capturing the bulk of the positive returns relative to the losses seen in smaller-sized and value equities.

Falling yields pushed most bond markets higher as markets anticipated easing interest rate cuts. As a result, more interest rate-sensitive areas, such as longer duration and government bonds benefitted while shorter-term governments, corporate, and high-yield bonds underperformed.

Commodity performance was mixed in June, with the broad index down 1.5%. Energy gained while grains fell on increased supply. Gold continued its year’s gains with a return of 0.2% as market volatility ticked higher and heightened inflation remained a concern. U.S. REITs benefitted broadly, gaining 2% on increased expectations of interest rate cuts.

The global 60/40 balanced portfolio returned 1.4% in June, with gains driven primarily by U.S. and emerging market equities. Relative to the blended index, U.S. REITs outperformed, while commodities and gold underperformed for the month.