2Q25 Economic & Market Outlook

KEY TAKEAWAYS:

1. In a reversal of the post-election euphoria, policy uncertainty, particularly around the implementation and impact of broad-based tariffs, weighed heavily on market sentiment.
2. Investors are also considering the costs and benefits of building out AI infrastructure, a driving force behind stock growth in recent years.
3. Despite growing concern, we believe the economy is on solid footing, as consumer financial health and the employment picture remain strong.
4. The market’s tendency to sell off in times of uncertainty overlooks the underlying strength of the economy. Sentiment should stabilize or improve as we get more direction on tariff policy and we welcome the potential of broadening index leadership.