It's difficult to imagine a greater range of emotions than what investors experienced over the prior three-month period. The beginning and end of the second quarter couldn't have been more different. In early April, the S&P 500 was down over 20% from its February all-time high amid an escalating trade war that threatened to upend the global economy.

The first quarter of 2025 was a transitional period for the financial markets, the U.S. economy, and the world at large. President Trump's inauguration in January ushered in a new era, one widely expected to mark drastic changes even compared to his first term. Just like in 2016, there appeared to be a "Trump Bump" in the stock market and many "soft" indicators such as Consumer Confidence and Small Business Optimism immediately after the president's November election win. However, unlike eight years ago, the honeymoon period did not last long.

The final months of 2024 were expected to be a time of transition for investors. The Federal Reserve pressed forward with their first set of interest rate cuts since March of 2020, while U.S. voters elected a new administration after another contentious election.