Britain’s Prime Minister Keir Starmer speaks with US President Donald Trump as they attend the North Atlantic Council plenary meeting at the North Atlantic Treaty Organisation summit in The Hague, Netherlands, on June 25, 2025.
Ludovic Marin | Via Reuters
What a first half of the year it has been.
In the first six months, the world saw a (not so) new U.S. president in the Oval Office, said president upend the global trade landscape, and a president in South Korea removed from office.
Conflicts also broke out between India and Pakistan, as well as Israel and Iran (along with a U.S. airstrike thrown into the mix.)
Chinese AI startup DeepSeek made its debut, stealing ChatGPT’s thunder for a while, and elections took place around the world, including in Germany, Australia, and even right here in sunny Singapore.
We might just have to call Billy Joel and get him to write a whole new version of “We Didn’t Start the Fire.”
Despite such a rollercoaster ride so far, market investors, in response to most developments, seem to have adopted the U.K.’s mantra as it prepared for war in 1939: Keep calm and carry on.
If we take a longer-term view, markets have delivered a respectable performance despite a volatile first half. Just a few stats: the S&P 500 and Nasdaq Composite closed at fresh all-time highs Monday and are up about 5% year to date.
In Europe, the Stoxx 600 is up 6.7%, and in Asia, most major markets are in positive territory, with Hong Kong and South Korea posting a whopping 20% gain year to date.
Keep calm and carry on into the second half of the year, investors.
— Lim Hui Jie
What you need to know today
S&P and Nasdaq touch fresh highs. On Monday, the S&P 500 gained 0.52% and posted another record close, ending at 6,204.95, while the Nasdaq Composite advanced 0.47% and reached a fresh all-time high of 20,369.73. Asia-Pacific markets traded mixed Tuesday, with Japan’s Nikkei 225 retreating from an 11-month high.
White House claims Canada ‘caves’ on trade. The White House said that Canada “caved” to President Donald Trump by hastily rescinding its digital services tax after the president threatened to shut down trade negotiations between the two major trading partners.
China’s June factory activity unexpectedly expands. The Caixin/S&P Global manufacturing purchasing managers’ index came in at 50.4, higher than the Reuters estimate of 49. It also diverged from China’s official PMI report, which samples more companies, mostly in upstream sectors.
Elon Musk calls Trump bill “DEBT SLAVERY.” The Tesla and SpaceX CEO is doubling down on his criticisms to kill Trump’s signature megabill. Musk also called for a “new political party,” and vowed that any fiscal conservative who votes for the bill will “lose their primary next year.”
[PRO] Beneficiaries of NATO defense spending. With NATO members committing to a much higher defense spending target, certain companies are expected to see huge boosts to their bottom lines – particularly those headquartered in Europe.
And finally…
Digital illustration of a glowing world map with “AI” text across multiple continents, representing the global presence and integration of artificial intelligence.
Fotograzia | Moment | Getty Images
