Quarterly Market Review & Outlook Q2 2025

Global equity markets entered the second quarter already on the defensive, having corrected more than 10 percent from February’s highs amid renewed tariff talks and growing concerns over the durability of the global expansion. In early April that caution was put to the test when ‘Liberation Day’ tariffs were unveiled, prompting an 11.5 percent slide for the S&P 500 and leaving headline indices just shy of bear-market territory.

Yet history reminds us that volatility at this stage of the cycle is nothing new. While the difference between a 19 percent decline and a 21 percent decline may seem trivial, the distinction between a correction and a bear market is meaningful. Corrections, defined as market declines of 10 percent to 20 percent, are a normal and healthy feature of sustained bull markets. Such resets help clear excesses, recalibrate expectations and often lay the groundwork for the next leg higher.

That pattern played out once again. By quarter-end, the S&P 500 had surged over 24 percent from its April low to reach a new all-time high, while the Nasdaq climbed 33.4 percent. Under the surface, fundamentals did the heavy lifting: Earnings are solid, inflation continues to ease, and recession risks remain low. The full report unpacks these dynamics, examines where policy risk still lurks and sets out our latest positioning views.

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Within our Q2 2025 Market Review & Outlook our Investment Committee delve deeper into the drivers behind this swift rebound. Click below to read the document in full.

View the Q2 2025 Market Review & Outlook

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