The latest Consumer Price Index (CPI) report shows that headline inflation cooled more than expected, dropping to 2.8% year over year in February from 3.0% in January, slightly below the anticipated 2.9%. Core CPI, which excludes food and energy, also declined to 3.1% year over year, marking the smallest gain since April 2021. Markets welcomed the news, with major indexes opening higher on Wednesday in response.

The U.S. economy is at an inflection point as President Trump’s latest round of tariffs on Canada, Mexico, and China stokes concerns over inflation and slowing growth. While U.S. exceptionalism has underpinned global markets for over a decade, recent developments raise questions about whether cracks are forming in the foundation. What does this mean for portfolios?

European equities have outperformed the U.S. so far in 2025, with MSCI Europe up nearly 11% year-to-date versus just 1.5% for the S&P 500. That’s a notable shift, but does it change the broader investment case?

Earnings season is a critical time for businesses and investors, helping gauge the health of individual companies as well as the broader economy. Although we're already in week 3 of Q4 2024 earnings season, the spotlight has been on January's Consumer Price Index reading, tariff talks, and the Federal Open Market Committee meeting. Let's dive into the key macroeconomic tends highlighted this earnings season.