Markets carried their strong momentum from the second quarter into the third quarter, with the S&P 500, Nasdaq, and Russell 2000 each hitting new highs. Investor sentiment remained optimistic despite soft labor market data and mixed economic signals, and stocks traded higher due to strong corporate earnings, the Federal Reserve’s resumption of rate cuts, and easing trade tensions.
Market Commentary 2/20/25
Understanding Tariffs and President Trump’s Recent Proposals
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.
However, they can also generate revenue for the government and are often used as a tool in international trade policy to negotiate better terms or protect strategic domestic industries.
Recently, President Trump has been issuing and threatening tariffs to help curb the flow of illegal aliens into the US, as well as attempting to get cooperation in curbing the flow of fentanyl into the country.
There are two main types of tariffs:
• Ad Valorem Tariffs – A percentage of the value of the imported good.
• Specific Tariffs – A fixed amount of money charged per unit of the imported good.
While tariffs can support domestic industries by limiting foreign competition, they can also lead to higher prices for consumers and potentially provoke retaliatory measures from trading partners. This has been well documented in the media since the beginning of 2025.
Want to read more? Click below to download our entire market commentary…
The NASDAQ 100 Index is an unmanaged group of the 100 biggest companies listed on the NASDAQ Composite Index. The list is updated quarterly and companies on this Index are typically representative of technology-related industries, such as computer hardware and software products, telecommunications, biotechnology and retail/wholesale trade.
The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market value weighted index with each stock’s weight in the Index proportionate to its market value.
PM-08182026-7648348.1.1
Related Posts
Q3 2025 Quarterly Market Commentary
Markets carried their strong momentum from the second quarter into the third quarter, with the S&P 500, Nasdaq, and Russell 2000 each hitting new highs. Investor sentiment remained optimistic despite soft labor market data and mixed economic signals, and stocks traded higher due to strong corporate earnings, the Federal Reserve’s resumption of rate cuts, and easing trade tensions.
Market Commentary 9/25/25
The S&P 500 gained 2.1% in August, extending its year-to-date return to 10.7%. Led by a 3.2% gain in Large Cap Value stocks, Growth trailed with a more modest 1.2% return. Health Care emerged as the best-performing sector, helping to lift the index, while Utilities and Technology lagged.