Pull Over?

Markets faced significant headwinds in the first quarter as the S&P 500 fell 10% from its February high and ended the quarter down 4.6%. Tariff fears and the unwinding of the Tech AI trade were the two primary catalysts for the volatility. Markets hate uncertainty and as Mr. Barkin states above, we are looking into a dense fog with some of the new regime policies. Click here to read more of our our quarterly newsletter.

Navigating 2025

Markets finished the 4th quarter with more upside and the S&P 500 gained 25% on the year. Along the way, there were 57 record closes as inflation continued its descent, the Fed started lowering rates, and AI lifted the big tech stocks to lofty levels. These are the best performing back-to-back years for the stock market since 1998.

The Dow (DJIA) returned 16% and the Nasdaq increased by 25%. Although the major indices performed quite well, the returns were extremely concentrated. The Magnificent Seven (large technology stocks) accounted for more than 53% of the S&P 500’s total return and Nvidia alone made up 21% of the return. Click 2025 Outlook to read more of our Newsletter.