After weeks of volatility, the fog of economic uncertainty is beginning to lift. The recent de-escalation in the U.S./China trade conflict marks a major turning point—not because tariffs are disappearing, but because policymakers are beginning to operate with greater clarity around the constraints they face. Here’s how that is likely to affect markets.

U.S. equities and treasury yields were mixed as odds of a June rate cut fell due to the unknown impact of tariffs on inflation and solid labor.

All eyes are on U.S./China relations this week, as new talks give hope for signs of de-escalation in the two countries’ trade war. While hopes for a comprehensive agreement remain low, even marginal progress could provide temporary relief to jittery markets. But China isn’t the U.S. markets’ only concern, just its largest and most obvious one—and that has potential implications for portfolio weightings.

The S&P 500 returned to pre-Liberation Day levels while yields rose on lower rate cut expectations.

Trade remained the focus for markets although fears lessened throughout the week, helping to lead the markets higher.

Thanks broadly to pressure from elevated policy uncertainty, recent weeks have brought us a sharp rout in global markets—erasing trillions in value...

Large cap growth U.S. equities moved lower as the dollar declined and yields fell with a steeper curve.

Barriers to open trade are rising at a pace not seen in decades, as the initial brunt of President Donald Trump’s sweeping tariffs proliferate through major economies. What began as a trade spat during Trump’s first term has broadened into a worldwide reshuffling of supply chains, with tariffs, anti-dumping duties, and import quotas escalating across the globe.

With 4Q24 earnings on track to grow 17%, and 10 out of 11 sectors delivering positive performance, our portfolios are currently in base positioning.

While investors grapple with continued geopolitical uncertainty, we maintained the base positioning in our Global Perspectives portfolios.