MARKETS
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Markets diverged in June as investors shifted from the large companies to small cap, and international stocks. The global equity index (MSCI ACWI IMI) decreased -0.57% in June and was up +12.01% YTD. The S&P 500, which tracks large cap U.S. stocks, decreased -0.95% in June and was up +10.21% YTD. The Russell 2000 Index, which tracks domestic small cap stocks increased +3.74% in June and was up +22.57% YTD. The International developed equity index (MSCI EAFE) increased +0.07% in June and was up +9.44% YTD. The emerging markets index (MSCI EM) decreased -1.41% in June and was up +23.85% YTD.
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In June, bond yield curve flattened; the 30-year U.S. Treasury bond yield decreased -8 bps to 4.91%, the 10-year yield decreased -1 bp to 4.44%, and the 2-year yield increased +16 bps to 4.14%. The Bloomberg U.S. Aggregate Index, which is a measure of U.S. Bond prices, increased +0.24% in June and was up +0.62% YTD.
ECONOMIC AND GEOPOLITICAL HEADLINES
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According to the Bureau of Economic Analysis, U.S. real gross domestic product (GDP) increased in the first quarter of 2026 by +2.1%, up from the 4th quarter 2025 increase of +0.5%.
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The June Services PMI was 54.00%, down -0.50% from May. The June Manufacturing PMI was 53.30%, down -0.70% from May. Per the Institute for Supply Management (ISM), a reading above 50 is considered economic expansion and below 50 is considered economic contraction.
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As reported by the Bureau of Labor Statistics on July 2, 2026, June non-farm employment increased by 57,000 jobs, and the unemployment rate slightly changed to 4.2%. In June employment increased in health care, professional and business services, and social assistance. Leisure and hospitality lost jobs. Average Hourly Earnings (wages) increased by 3.5% year-over-year.
PERFORMANCE UPDATES
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The Equity Fund increased +0.57% in June and is up +13.17% YTD. The Bond Fund increased +0.23% in June and is up +0.39% YTD. The Stable Value Fund increased +0.23% in June and is up +1.33% YTD. The Northern Trust World Selection Index Fund increased +0.41% in June and is up +9.76% YTD.
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The Sustainable Balanced Fund decreased by -0.11% in June and is up +6.14% YTD. The Target Annuitization Date TAD 2025; TAD 2030; TAD 2035; TAD 2040; TAD 2045; TAD 2050; TAD 2055; TAD 2060; and TAD 2065 returns were +0.30%, +0.36%, +0.41%, +0.45%, +0.48%, +0.50%, +0.55%, +0.55%, and +0.55% respectively for June and is up 3.51%, +5.26%, +7.08%, +8.33%, +9.33, +10.28%, +11.07%, +11.13%, and +11.10% respectively YTD.
Note: Fund performance values are estimates.