The stock market broke new all-time highs in June, but what’s really driving this surge? And more importantly, what should investors and traders do next, especially when things feel expensive?
In this post, we’ll walk you through the key macro events, market drivers, potential risks, and opportunities that shaped the global markets in June. Whether you’re a long-term investor or a short-term trader, these insights can help you make more informed decisions, especially when the market is this stretched.
📌 Highlights at a Glance:
- U.S. stock indices like the S&P 500 and Nasdaq 100 hit record highs
- Geopolitical tensions in the Middle East eased with new peace talks
- Stablecoin regulation passed with the GENIUS Act, impacting financial stocks
- U.S. spending bill (nicknamed “One Big Beautiful Bill”) approved – boosting defense and AI sectors
- Trade war developments continue between the U.S., China, and Europe
- Fed paused rate hikes but projected higher inflation and unemployment
- AI demand surged, with Saudi & the UAE leading sovereign AI infrastructure deals
- Over $7 trillion in cash is parked on the sidelines, awaiting the right moment
🧭 What Drove the Market Rally?
Several positive developments aligned in June:
- Middle East Peace Talks: After airstrikes between the U.S., Israel, and Iran, peace negotiations quickly followed. Markets responded positively, especially in energy and defense sectors.
- GENIUS Act Passed: This new U.S. regulation allows corporations to issue stablecoins – digital currencies pegged to the U.S. dollar or treasury bonds. This boosted companies like Coinbase and fintech brokers, while legacy players like Visa and Mastercard experienced short-term pressure.
- Massive U.S. Spending Bill Approved: The “One Big Beautiful Bill” increases defense budgets, extends tax cuts, and raises the debt ceiling. While it adds to the deficit, it injects optimism into sectors like military tech and industrials.
- Strong AI Momentum: Massive infrastructure plans in the Middle East (e.g. 5 GW AI campuses in Saudi Arabia and UAE) continue to drive hardware demand, benefiting semiconductor stocks, data center providers, and enterprise software players.
📉 Macro Risk Factors to Watch
Despite the bullish headlines, risks still loom. Smart investors always prepare for both sides of the equation – that’s why at Beyond Insights, we teach students to manage risk before chasing returns.
Key risks include:
- Tariff escalation: Trade talks are ongoing, but tensions remain. July could bring volatility if negotiations stall.
- Sticky inflation: Despite Fed pauses, inflation projections are rising again – which could pressure consumer spending.
- Geopolitical flare-ups: Even minor setbacks in the Middle East or China could trigger market pullbacks.
- Tech war with China: Developments from Huawei or SMIC could affect dominance in AI chips currently held by Nvidia, AMD, etc.
📊 Global Market Snapshot: 10-Year Returns
To bring some perspective, here’s how different markets performed over the past 10 years:
| Index | 10-Year Return | Average Return per Year |
|---|---|---|
| Nasdaq 100 | +437.9% | 43.79% |
| S&P 500 | +202.7% | 20.27% |
| China (SSE) | +4.8% | 0.48% |
| Hang Seng (HSI) | 0.64% | 0.06% |
| Malaysia (KLCI) | -11.5% | -1.15% |
👉 Lesson: Choosing the right market matters. This is why our Top-Down 40-30-30 Framework begins with analyzing macro and industry factors before diving into stock selection.
🎯 What Should Investors and Traders Do Now?
If You’re an Investor:
The market is at all-time highs, which means valuations are stretched. Now is not the time to chase. Instead, use this time to:
- Reassess your watchlist
- Prepare entry plans based on valuation and support zones
- Monitor catalysts from trade talks, monetary policy shifts, or macro events
If You’re a Trader:
Short-term opportunities still exist, especially for swing and intraday traders. Some sectors are forming new support zones after breaking out of their previous ranges. Key strategies to consider:
- Swing trades on trending stocks with strong earnings or macro tailwinds
- Intraday setups during earnings season or high-volatility news cycles
- Stay nimble, and always manage your risk exposure
🧠 From Data to Decisions: How We Analyze the Market
At Beyond Insights, we guide our students through our STPM Framework:
- Select: Identify high-growth stocks using proven filters and fundamentals
- Time: Use technical analysis to find the best entry & exit
- Protect: Apply risk management (position sizing, stop-loss, portfolio limits)
- Multiply: Accelerate growth using trend/swing trades, CFDs, or leverage
🚀 Sector Opportunities on the Radar
Based on recent developments, the following industries are worth watching:
- AI Infrastructure (Semiconductors, data centers, enterprise cloud)
- Defense & Aerospace (due to increased global budgets)
- Fintech (thanks to GENIUS Act and financial deregulation)
- Industrial Manufacturing (U.S. subsidies + shipbuilding focus)
These sectors could offer pullback opportunities in the coming months, especially if short-term volatility emerges from trade talk deadlines or Fed surprises.
🙌 Final Thoughts
The stock market may be hitting record highs, but that doesn’t mean you’ve missed the boat. The key is not to panic, but to be prepared.
If you’re feeling uncertain about where to start, or unsure how to invest safely when the market is stretched, we invite you to join our free 3-hour webinar, where you’ll discover a systematic, versatile, and safe approach to the stock market.
👉 Click here to reserve your spot – and start building a better financial future.