The U.S. Economic Policy Uncertainty Index recently spiked to levels not seen since the Covid-19 pandemic. As of March 2025, the index has risen past 700, which is many multiples of the historical average. That has a couple potential implications for markets—the least of which is more volatility.

Recent data suggests that U.S. consumers are growing increasingly pessimistic about the economic outlook, and the financial markets are starting to reflect that reality. Here’s what’s happening, and what it could mean for your portfolio.

Since 2022’s difficult equity market, the S&P 500 has had an impressive momentum run, posting significant gains throughout 2023 and 2024.