Second Quarter 2025 Review

Despite escalating tariff rhetoric, markets surged in the second quarter as investors focused on a resilient U.S. economy, improving corporate earnings, and a more flexible policy stance from both the Federal Reserve and the White House. With jobs growth steady, inflation contained, and deregulation gaining traction, the S&P 500 staged its fastest recovery from a -15% correction in history.

We believe these underlying forces—not trade friction—will shape market performance in the second half of 2025.