June Market Recap: Equities, Commodities, and Dollar Strength

Key Takeaways

-US equities pushed higher, led by tech, AI, and innovation-focused names, though markets saw choppiness late in June.
-USD strength continued as markets priced a more hawkish Fed, pressuring non-yielding assets like gold.
-Gold fell below $4,000 amid Fed rate-hike expectations and geopolitical uncertainty.
-Oil steadied near pre-war levels as easing US-Iran tensions lowered immediate supply risk.
-Bitcoin slid below $60,000 as macro pressures, USD strength, and higher yields weighed on risk appetite.
-SpaceX’s IPO boosted sentiment for tech and AI sectors, drawing attention to growth-oriented equities.

June was defined by mixed sentiment as easing geopolitical tensions around the US-Iran conflict supported risk assets while a hawkish Fed outlook kept yields and the US dollar elevated. Equity markets showed resilience, particularly in tech and AI, with SpaceX’s IPO generating renewed investor excitement.

Commodities experienced divergent moves: oil pulled back from earlier highs but remained sensitive to any geopolitical disruption, while gold sold off as investors priced in a tighter US monetary environment. Bitcoin and crypto broadly underperformed, with the digital asset trading below $60,000 due to macro pressures and fading risk appetite.

Dollar Strength and Fed Outlook

The US dollar gained across major currencies as markets adjusted to a more data-led Fed under Chair Kevin Warsh. Persistent inflation and strong GDP growth reinforced expectations of additional rate hikes, keeping Treasury yields supported. USDJPY continued its uptrend via the carry trade, and other risk-sensitive currencies like GBP, AUD, and EUR remained pressured.

Precious Metals

Gold slipped below $4,000, reflecting the headwinds from rising rates, a firmer dollar, and fading geopolitical risk support. Short-term trading is concentrated around the $3,970–$4,000 zone, with the market awaiting upcoming US labour and inflation data for direction. Silver mirrored gold’s weakness but remained more volatile due to industrial demand exposure.

Oil Markets

Oil continued to react to the easing of US-Iran tensions. Brent and WTI moved toward pre-war levels, around $74 and $70, respectively, as traders priced in reduced supply risk.

However, volatility remained, with potential flare-ups in the Middle East capable of quickly reigniting the risk premium. The market also monitored shipping activity through the Strait of Hormuz and China’s crude demand for additional cues.