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Tariffs are taxes or duties imposed by a government on imported goods. The primary purpose of tariffs is to make imported goods more expensive, encouraging consumers and businesses to buy domestically produced alternatives.

Both stocks and bonds produced positive returns in January; however, there was a change in market leadership as the rally broadened.

The past two years have been strong for investors, with the S&P 500 posting back-to-back gains of over 20 percent. At the start of this year, the S&P 500’s previous all-time high was set in January 2022 (4,796 on the first trading day of 2022). It took over two years to reclaim the prior high, but once the index broke through in late January 2024, it set more than 50 new highs this year.

Last week the financial markets remained strong, signaling a continuation of bullish sentiment among investors. The Dow Jones Industrial Average closed at a record high, gaining nearly 2% for the week. The gains were driven by strong performance across multiple sectors including technology, industrials, and healthcare.

The election is over, and global markets are analyzing the outcome and starting to adjust portfolios. Republicans are set to control the White House, Senate, and House, but the results are also notable for a historical reason: the president-elect, Donald Trump, is returning to office after a previous election loss—a rare political comeback not seen since Grover Cleveland in 1892. As a result, investors are looking to Trump’s first term as a roadmap for how his next administration’s policies may impact markets.