A tale of two quarters: from tariff turbulence to market recovery
The first half of 2025 has presented investors with a rapidly shifting landscape shaped by macroeconomic uncertainty and geopolitical developments.
Equity markets began the year under pressure as concerns over renewed tariffs dampened investor sentiment, triggering broad-based declines in the first quarter. However, sentiment turned sharply in the second quarter after the U.S. administration announced a 90-day tariff pause on April 9. That day, the S&P 500 surged 9.5%—its best single-day performance since 2008. As confidence returned, equity markets broadly regained their footing and by the end of June major indices were trading near-all time highs, reflecting a combination of renewed optimism, resilient corporate earnings and a recalibration of risk expectations.
Meanwhile, bond markets were more muted as rising yields weighed on bond prices. Gold emerged as a standout performer, benefiting from increased demand as a safe-haven asset amid rising uncertainty, a weaker U.S. dollar, and strong central bank purchases.
