The stock market has been on a roller coaster this year which has been reflected in the 2025 TSP performance.
A historic and tumultuous quarter ended with U.S. stocks at record highs, and many investors are betting the ride isn’t over yet. The broad stock market index (S&P 5o0) has now added more than 9% since President Trump announced a tariff policy that created stock market havoc. Inflation is now close to the Federal Reserve’s 2% target, and economic growth still seems strong.
The stock market has been on a tear in the second quarter. On April 8, 2025, the C Fund closed at about $79 per share. The S Fund was $71.68. On June 30th, the day the quarter ended, the C Fund was up to $98.67 (25% increase), and the S Fund was up to $92.05 (28.4% increase).
Those who chose to invest in the I Fund also did well. This Fund jumped to $49.72 from $39.69 (25.3% increase).
The table below highlights these returns.
| Fund | 4/8/2025 | 6/30/2025 | % |
|---|---|---|---|
| C Fund | $79.0001 | $98.6743 | 25% |
| S Fund | $71.6795 | $92.0521 | 28.4% |
| I Fund | $39.6891 | $49.7247 | 25.3% |
| G Fund | $18.9821 | $19.1711 | 1% |
| F Fund | $19.8518 | $20.2603 | 2.1% |
To put this into perspective, on April 8th, stocks had dropped by more than 15% during the year, and the TSP returns were down significantly in March. The surge in stock prices in June set a record. It normally takes about 361 days for the stock market to hit new highs after a drop such as the one that occurred early in the year.
This year, the return from the drop in stock market prices occurred in 55 days. This was the fastest return to a new high following a 15% draw