DFG Navigator Archives | May 2025
Your Capital Markets Snapshot: Markets Rally Amid Eased Trade Tensions and Fed Concerns
Last week, equity and bond markets experienced a relief rally as the U.S. administration softened its stance on trade and concerns over the Fed's independence eased. This change of position from the Trump administration appears to have helped alleviate trade uncertainty and market volatility with both measures dropping sharply off their recent highs. While this is a positive shift, equity markets are still below their recent highs and likely require more concrete agreements with major countries to return to those levels. As first quarter earnings season continues corporate profits are in focus. Based on releases thus far, it appears mid-single-digit earnings growth could be achievable if the economic slowdown doesn't worsen. While the US equity market continues recovering from their recent drawdown episodes, US fixed income and international equities continue to deliver positive returns on a year-to-date basis. This highlights the importance of maintaining diversification across markets segments and asset classes when constructing and rebalancing portfolios. Read more … Your Capital Markets Snapshot: Markets Rally Amid Eased Trade Tensions and Fed Concerns