MTC Market Insights
July 1, 2025
Confidence Tested
Key Takeaways
Overall confidence modestly recovered in the second quarter, which could help stimulate economic activity and growth in the back half of the year (1).
U.S. equities reached record highs despite downward revisions to earnings growth - perhaps an indication of investor
confidence behind many companies maintaining their full year guidance (1).
The Federal Reserve has maintained a patient stance, citing the risk of "transitory" inflation stemming from tariffs, causing a
moderation of expectations for further rate cuts in 2025 (2).
Sources: 1 Financial data and analytics provider Factset2 U.S. Federal Reserve
