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Volatility returned last week due to trade tensions and a sudden geopolitical shock, even though economic data showed moderating growth and lower inflation.

Investors digested a fragile U.S.–China trade truce, a steady but slowing labor market, and an escalation in the Israel–Iran conflict that sent safe-haven assets soaring. In this commentary, we break down the key developments, from Washington to the Middle East, and discuss what they mean for markets, interest rates, and long-term investors.

U.S. equities staged a powerful comeback in May, with the S&P 500 Index posting a 6.3% return, its strongest monthly gain since November 2023. Leading the charge were Large Cap Growth stocks, as the Nasdaq 100 surged 9.2% and the Russell 1000 Growth climbed 8.9%.

Equity markets were relatively unchanged this past week, with the S&P 500 finishing flat after giving back early gains spurred by news that the U.S. would temporarily exempt certain tech products from new China tariffs.

Equity markets were relatively unchanged this past week, with the S&P 500 finishing flat after giving back early gains spurred by news that the U.S. would temporarily exempt certain tech products from new China tariffs.

Equity markets were relatively unchanged this past week, with the S&P 500 finishing flat after giving back early gains spurred by news that the U.S. would temporarily exempt certain tech products from new China tariffs.

Stocks started 2025 trading higher but have since pulled back, with the S&P 500 entering “correction” territory with a 10% decline from its all-time high on February 19.

Even though six of the eleven S&P 500 sectors traded higher, led by defensive sectors, the S&P 500 declined approximately 1.3% in February.

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.