The second quarter of 2025 ended with less uncertainty in capital markets but greater economic volatility, as tariff negotiations between the Trump administration and its trading partners unfolded. Pauses in the talks and extensions of deadlines let markets catch their breath, and the S&P 500 Index (our preferred benchmark) finished the quarter up roughly 10 percent.

For most of 2024, uncertainty dominated investor conversations worldwide. Much of that unease stemmed from the incoming administration and the campaign-trail policies it carried into office. Debates over immigration, trade, and energy buffeted markets and set the stage for the pronounced volatility we saw in the first quarter of 2025.

U.S. markets closed 2024 up approximately 23%, defying volatility in the final quarter. December brought uncertainty, with a newly elected president set to take office and ongoing concerns over whether the Federal Reserve had inflation..

Over the past 14 years of analyzing domestic financial markets and economic shifts in the U.S., I’ve observed how today’s environment reinforces my perspective on the trajectory of our increasingly globalized economy. As I’ve highlighted in past discussions, the speed of information transmission accelerates economic changes, reshaping markets at an unprecedented pace.

Our view remains that domestic companies remain superior to emerging markets across the world. While the narrative begins to shift at various institutions across Wall Street, we remain steadfast in the acknowledgment that the most powerful companies in the world continue to be founded across the geographical footprint of the United State..

Over the past quarter, the U.S. economy has shown signs of evolving dynamics under the influence of various economic indicators and the Federal Reserve's monetary policies. The Federal Reserve has been closely monitoring the economy's progress, adjusting its monetary stance to ensure sustainable growth and control inflation. The Consumer Price Index (CPI) for March 2024 marked…