General Market Commentary as of March 31, 2025
The first quarter provided a lackluster start to 2025 as all US major indices posted negative returns. The S&P 500
was down -4.59%, the Dow Jones Industrial Average lost -1.28%, and the Nasdaq Composite fell -10.42%.
While US Equity markets lagged, Developed markets outside the US and Emerging markets gained in the
quarter. Value outperformed growth and large caps bested small caps during the quarter.
Interest rates generally decreased in the short- to intermediate-term segment and increased in the longer-term
segment globally for the quarter. The progression towards yield curve normalization continues, but some
short-term segments including the US, Canada, Germany and Australia remain inverted.
Domestically, a new administration took office on January 20th with planned reform in several areas that will
continue to affect markets moving forward. The Federal Open Market Committee met in mid-March leaving the
federal funds rate unchanged but indicated a stance for two rate cuts later in 2025. Much of the sluggish
performance in US markets can be attributed to the “Tariff Talk” that has dominated the news cycle. Further
clarity on the imposition of tariffs will play out in subsequent quarters this year with a broader announcement
slated for early in Q2.
| Tot Return | 3-MO* | 12-MO* | 3-Year* | 5-Year* | Closing Value |
|---|---|---|---|---|---|
| S&P 500 | -4.59% | 6.80% | 7.40% | 16.77% | 5,611.85 |
| Dow Jones Industrial Average | 1.28% | 5.51% | 6.59% | 13.89% | 42,001.76 |
| NASDAQ Composite | -10.42% | 5.62% | 6.75% | 17.57% | 17,299.29 |
Source: Morningstar. The S&P 500, Dow Jones Industrial Average, and NASDAQ Composite are unmanaged indexes. It is not possible to invest in an index. Past performance is no guarantee of future results. * Price only. Does not include dividends.
All overviews and commentary are intended to be general in nature and for current interest, educational purposes and factual reference only and are subject to change based on market and other conditions.
