SFM Observer- June 2025

Glenn Sweeney |

SFM OBSERVER

June 2025 Recap

A CONCISE REVIEW OF THE MONTH IN THE INVESTMENT MARKETS

Issued: July 3, 2025

 

The Dow closed the month of June at 44,094 for a monthly gain of 1,824 points or 4.3%.  The market continues to rally off the lows put in after Liberation Day.  Investors are looking past the tariffs and are now comfortable with a Fed on hold.  Inflation data has been calm and job data is still okay.  Summer is upon us as we approach the 4th of July.

 

Some interesting events from the month just passed:

 

  • Nintendo has a hit on their hands with the Switch 2 console.  The new gaming device sold 3.5 million units in just four days exceeding the sales pace of all previous Nintendo consoles.  Walmart quickly sold out of the game devices.
  • Part of the DOGE cuts may be affecting the accuracy of inflation data coming out of the government.  Worker shortages and a hiring freeze are limiting the amount of actual price checks DOL is collecting and they are using more guesstimates to compute the inflation rate.
  • Micron Technology is planning to spend $200 billion on new semiconductor plants in the U.S..  Two plants will be located in Idaho and four new plants are planned for New York.  Micron expects to hire 90,000 people at these plants and move 40% of its production to the U.S..
  • The balance of power is shifting in the housing industry.  There are now 500,000 more sellers than buyers of homes.  Inventory on the market is climbing and bidding wars are gone in some markets.  Buyers are pulling back due to high prices and high mortgage rates and more sellers are entering the market trying to catch the top of the market.
  • The country is out cruising this year.  Carnival Cruise Lines said that although they have raised prices over the past few years, the vacation value against a land-based vacation is still compelling to travelers.  Bookings and on-board spending have both been strong for the company.

 

Thank you for reading this issue of the SFM OBSERVER.  If you have any comments or questions, please send us a reply.  If you have a friend or associate that might be interested in the SFM OBSERVER, feel free to forward this email.

 

Happy Birthday to our wonderful country!  Enjoy the 4th festivities.

 

 

Glenn Sweeney CFA