The index has risen by 6.3% in June, according to Refinitiv. This is the best month of the S & P 500 since January – it's also the best June since 1955, when the index rose 8.23%.
The Dow  ( INDU )
failed to set a final record in June. But it has risen by 6.9%, with the best profit since January. The Dow rose by 1
4% in 2019.
Equities rose in June, hoping that the Federal Reserve would soon cut interest rates to boost the economy. The strong rally has outweighed some bad days caused by geopolitical and trade concerns.
Earlier this month, US Federal Reserve Chairman Jerome Powell pled for sustainable economic growth in the US. The market believed interest rate cuts were in sight – stocks rose sharply after these comments. Lower interest rates are usually juice stocks and make it cheaper for companies to borrow money.
The Fed announced last week that it would lower interest rates, albeit with more cautious language. However, investors are confident that such a move will come: expectations for a rate cut in July are 100%, according to the CME FedWatch tool.
For equities, however, this was not a seamless path to the upside.  On June 25, the Dow and S & P hit the worst one-day decline in nearly a month.
Tensions between the United States and Iran increased after Tehran shot down a US military drone. Iran said the drone had entered the country's territory, while the United States said the incident had occurred in international airspace. This led to concerns about a possible military conflict.
President Donald Trump dropped his threat of tariffs on Mexico earlier this month. However, the US trade war with China continues. Trump and China's President Xi Jinping are meeting on the sidelines of the G20 summit that started in Japan. Investors hope that the meeting will usher in the next phase of negotiations.