After all the ups and downs in April, a bunch of big firms lowered their year-end market targets. They pointed to uncertainty around things like tariffs, inflation, and the chance that we won’t see any interest rate cuts in 2025. As the market started to wobble, analysts—no surprise—rushed to update their predictions for next year. Here’s a look at some of the firms that changed their outlook in April.
(Source: NASDAQ)
Just two months later, Citi, Deutsche Bank, Barclays, UBS, and Morgan Stanley all raised their targets. Most of the new S&P 500 forecasts are now between 6,000 and 6,550. So, when everyone was feeling negative, it actually turned out to be a great time to stay positive. Now that more people are jumping on the bullish bandwagon, the big question is—what’s next for the market?
One way we looked at this was by checking how the market has performed after a strong May rally of 5% or more. Since 1950, that’s only happened six times—2025 makes it the seventh.
(Source: Carson Insights)
In those previous 6 cases, the market was up a year later every time, with an average gain of 19.9%. Shorter-term results—like over 1, 3, or 6 months—were a bit more mixed, but overall, these kinds of rallies tended to happen during bull markets. Of course, past performance doesn’t guarantee future results, but looking at historical patterns can be helpful—especially when the market and headlines feel a bit overwhelming in the short term.
International Stocks
There’s a lot going on in the markets in 2025, but one of the standout stories has been the strong performance of international stocks. So far this year, they’ve outpaced U.S. stocks—thanks to better valuations, a weaker U.S. dollar, and signs of economic improvement overseas.
International stocks have been cheaper than U.S. stocks in recent years, but now we’re starting to see stronger earnings growth alongside those lower valuations. For a long time, investing internationally has underperformed—but in 2025, that’s changed in a big way. With the S&P 500 looking a bit more vulnerable, international markets have really started to shine.
Welcoming New Talent to Lake Street
We’re thrilled to share that Lake Street is growing! Please join us in welcoming two outstanding new team members: Jacob Hartke and Melanie Van Egdom.
Jacob joins us as a Private Wealth Advisor, bringing a strong background in financial planning and investment management. He’s passionate about helping clients make confident decisions about their financial future and takes pride in building lasting, trusted relationships.
Melanie joins as a Client Service Associate, bringing with her more than 30 years of industry experience. Throughout her career, she’s become known for her exceptional client service, attention to detail, and ability to form deep, meaningful connections with the individuals and families she supports.
Both Jacob and Melanie are based in Fairmont, Minnesota, and we couldn’t be more excited to have them on board. Their expertise, professionalism, and dedication to client success make them valuable additions to the Lake Street team.
Please help us give them a warm welcome!
Articles We’re Reading
JPMorgan CEO Dimon says without substantial changes, there will eventually be a ‘crack’ in bond market over national debt (FT)
Daly says picture on economy remains incomplete, still comfortable with baseline forecast for two rate cuts this year (Bloomberg)
Waymo has established a big lead in autonomous taxis, current trajectory suggests broad-based adoption may come sooner than expected (MSN)
Overseas travelers swapping US vacation plans for trips to Europe or their own countries (MSN)
Market Snapshot
For the Month Ending 5/31/2025 (Cumulative Returns)1
1Source – Morningstar, Inc. Corporate Bonds is presented as the iShares iBoxx $ Investment Grade Corporate Bond ETF. Municipal Bonds is presented as the iShares National Municipal Bond ETF. High Yield Bonds is presented as the iShares iBoxx $ High Yield Corporate Bond ETF. 10 Year Treasury refers to the valuation of a 10 Year Treasury Note, a debt obligation issued by the U.S. Department of the Treasury. Fed Funds Target represents upper limit of the federal funds target range established by the Federal Open Market Committee. Inflation Rate provided for the purposes of this report by the U.S. Bureau of Labor Statistics. Unemployment Rate calculated by the U.S. Bureau of Labor Statistics. WTI Crude Oil refers to the price of a barrel of West Texas Intermediate NYMEX) Crude Oil. Gold – Spot Price relates to the valuation of an ounce of gold, as traded on the NYSE Arca Exchange. U.S. Dollar refers to the U.S. Dollar Index (DXY). All Returns are denominated in USD (United States Dollar), unless otherwise explicitly noted.
Did You Know?
The 2025 French Open final lasted an incredible 5 hours and 29 minutes, making it one of the longest Grand Slam finals ever played.
But the longest tennis match in history happened at Wimbledon in 2010, when John Isner and Nicolas Mahut faced off in a marathon that lasted 11 hours and 5 minutes — spread over three days! The final set alone went to 70–68, an unbelievable display of endurance, focus, and determination that still stands as a record today.
Presented by the Investment Committee of Lake Street, an SEC Registered Investment Adviser
The information contained herein constitutes general information and is not directed to, designed for, or individually tailored to, any particular investor or potential investor. This report is not intended to be a client-specific suitability analysis or recommendation, an offer to participate in any investment, or a recommendation to buy, hold or sell securities. Do not use this report as the sole basis for investment decisions. Do not select an asset class or investment product based on performance alone. Consider all relevant information, including your existing portfolio, investment objectives, risk tolerance, liquidity needs and investment time horizon. Diversification does not ensure a profit or guarantee against a loss. There is no assurance that any investment strategy will be successful. Investing involves risk and you may incur a profit or a loss.
