MTC Market Insights

April 1, 2025

Challenging Convention

Key Takeaways

• The first quarter of 2025 was marked by the flood of new, disruptive policy moves by President Trump and his administration, which weighed on investor sentiment and market performance (1).

• Economic data was mixed with some indicators showing resilience, while others notably weakened amid persistent inflation trends leading to the Federal Reserve maintaining its patient posturing (1, 2, 3, 4).

• Unexpected to many, international equities have outperformed U.S. markets, driven by factors such as policy uncertainty and high relative valuations in the U.S., coupled with more accommodative central bank actions overseas (1).

Sources: 

• 1 Factset 

• 2 Federal Reserve 

• 3 Bureau of Economic Analysis

• 4 Bureau of Labor of Statistics