Global equities started the second half of 2025 on a strong note, extending a record-breaking rally as investors grow more confident in the resilience of the U.S. economy despite ongoing trade policy uncertainty from President Donald Trump’s tariff agenda.
The MSCI All Country World Index, which closed at an all-time high on Monday, gained for a fourth consecutive session, underpinned by optimism that markets can weather geopolitical headwinds. Asian stocks, led by Taiwan and South Korea, also advanced, while S&P 500 futures dipped 0.1% after the benchmark wrapped up its best quarter since December 2023.
U.S. Treasuries rallied, with yields on the 10-year note slipping 2 basis points to 4.21%, reinforcing bets that the Federal Reserve could soon pivot back to rate cuts.
“I do think the second half is actually pretty positive still,” said Jun Bei Liu, founder and lead portfolio manager at Ten Cap, during an interview with Bloomberg Television. “We disagree with many calling for a big sharp fall in the share market. We think the fundamentals of the share market are pretty strong.”
The upbeat tone was set by Wall Street bulls, who propelled U.S. stocks to all-time highs at the end of a strong Q2, buoyed by hopes of improved trade relations and a dovish shift in Fed policy. Analysts noted that the first half of 2025 was the best for Treasuries in five years, signaling strong investor appetite for safety alongside equity gains.
