July did not break the trend, it tested its depth. After a record-setting first half, global markets entered a phase of quiet recalibration. The S&P 500 edged slightly higher, with leadership rotating out of mega-cap tech and into laggards such as utilities and industrials. While volatility stayed low, earnings exceeded expectations and tariffs began to look more like a tax on efficiency than a structural threat.

Markets in May were anything but quiet. What began with elevated anxiety fueled by escalating trade rhetoric and surging bond yields, quickly pivoted into a broad-based rally, as investors responded to a series of headline-driven shifts. At the center stood President Trump, whose abrupt softening on China tariffs and temporary delay of punitive measures against the EU triggered a powerful reversal in sentiment. Equities surged, led by the U.S., as fears of a global trade war gave way to hopes of renewed negotiation. Robust corporate earnings and a rebound in consumer confidence added to the momentum, helping to offset concerns over fiscal sustainability and persistent inflation pressures. The result was a market driven more by political headlines than economic fundamentals. Yet one that delivered a decisive recovery from April’s lows.

Q1 2025 ended with stark divergence in regional performance, driven by geopolitics, policy surprises, and sector-specific risks. What began as a promising start to the year, supported by solid economic data and resilient consumer demand, shifted abruptly toward risk aversion. The reintroduction of aggressive US tariffs under the new Trump administration sparked fears of a trade war and stagflation, leading to sharp losses in US equities and tech-heavy indices. Meanwhile, Europe experienced a fiscal renaissance, China leaned into AI and pro-growth reforms, and safe-haven assets surged. While volatility may persist, the quarter’s events are shaping a new global investment narrative - one where policy-driven dispersion and strategic selectivity are key.

February 2025 was an eventful month for financial markets, characterized by periods of strength and turbulence. The month began on a cautious note as markets reacted to escalating trade tensions, particularly the threat of new US tariffs on Canada, Mexico, and China. However, a temporary extension for Canada and Mexico provided relief, fueling a short-lived rally that pushed the S&P 500 to an all-time high on February 19. As the month progressed, sentiment shifted towards risk aversion, with renewed tariff concerns and weaker US economic data weighing on equities, particularly technology stocks. Despite these headwinds, European equities remained resilient, supported by strong corporate earnings and fiscal stimulus. Meanwhile, the move toward safe-haven assets boosted sovereign bonds and gold, offering investors a buffer against market volatility.