All the market indices closed higher than the beginning of the month.

• • • The S&P 500 finished at 6,204.95 pts (4.96%)
    • The DOW finished at 44,094.77 pts (4.32%)
    • The NASDAQ finished at 20,369.73 pts (6.46%)
    • The TSX finished at 26,857.11pts (2.61%)

Canada

Monetary Policy

• On June 4^th, The Bank of Canada (“BoC”) decided to maintain the overnight lending rate.
  • Currently, the overnight rate is 2.75%, the Bank Rate is at 3.00%, and the deposit rate is at 2.70%.
  • “With uncertainty about US tariffs still high, the Canadian economy softer but not sharply weaker, and some unexpected firmness in recent inflation data, Governing Council decided to hold the policy rate as we gain more information on US trade policy and its impacts.”
  • The next interest rate announcement will take place on July 30^th, 2025.

Economic Data

• Canada’s economy was feeling the pressure in April from trade tensions with its largest trade partner. Canada’s gross domestic product contracted by 0.1% over the month.
• Canada’s exports to the U.S. dropped by 0.9% in May, adding to the 15.7% decline in April. With substantial tariffs on key products in place, U.S. purchases of Canadian goods have fallen.
• Canada’s annual inflation rate was 1.7% in May, matching the rate in April, which was the lowest since September 2022.

• The BoC noted it is closely monitoring inflation, which could pick up in response to trade tensions with the U.S. Markets are still expecting the BoC to cut rates again in 2025.

U.S.

Monetary Policy

• The Fed announced that there was no change to its federal rate in its June meeting.
  • The target range for the federal funds rate is 4.25-4.50%.

• Fed Chair Jerome Powell acknowledged that inflation has been moderating and has eased considerably from its peaks. But near-term inflation expectations have ticked up, with survey respondents pointing to tariffs as the source of higher prices.
• The next Fed meeting will take place on July 28^th– 29^th.

Economic Data

• The U.S. inflation rate increased to 2.4% in May from 2.3% in April. The annual core inflation rate remained at 2.8% in May.
• Canada’s exports to the U.S. dropped by 0.9% in May, adding to the 15.7% decline in April. With substantial tariffs on key products in place, U.S. purchases of Canadian goods have fallen.
  • The U.S. unemployment rate declined to 4.1% in June
• The Trump administration is expected to announce new tariffs by August 1^st, with potential impacts on BRICS-aligned countries and European imports.

Global

• Europe’s economy grew by 0.3% in the first quarter but is expected to be hindered by trade tensions. The EU is hoping to open trade and investment opportunities with the U.S.
  • A flash estimate showed Europe’s annual inflation rate slowed to 1.9% in May from 2.2% in April, its lowest level since September 2024.
• The U.K. economy grew by 0.7% over the first quarter of 2025, marking its fastest pace of quarterly growth since the first quarter of 2024.
• The Bank of England (“BoE”) held interest rates steady at its most recent meeting.
  • The BoE is closely monitoring global trade tensions, energy prices and geopolitical tensions and their impact on the U.K. economy.

Notes From our Firm

• Supporting our local community is a key part of our mission and we’re proud to make it on of our core values. Our team has been involved in numerous charitable events over the years, though closest to our hearts is the Wise Guys Charity Fund
  • A 100% volunteer-based operation, the Wise Guys Charity Fund helps raise and disburse funds to countless local charities and community organizations across Niagara.
  • Over the past 30+ years, Wise Guys Charity has raised over $5.4 million with every cent going back into the Niagara community.
  • On July 15th, Wise Guys will be hosting their annual charity auction and dinner. On July 16th, Wise Guys will be hosting the 34th annual charity men’s golf tournament.
• For more information, please visit the Wise Guys Charity Fund’s website by Clicking here.

As always if you have any questions, please feel free to reach out to us. Or, if you know someone who would like an opinion on their investments or insurance, please connect us! There is no better compliment than a referral from one of our current clients.

Yours Truly,

The Team, C.R. Smith Financial

Community, Respect, Service & Financial Integrity