Market Insights

US stocks broadly extended their losses through March, following a decline in February, as investors remained cautious ahead of significant US trade tariff actions. The introduction of increased trade barriers may hamper global output, restrict economic growth, and raise consumer prices—all critical factors that can negatively impact stock market valuations.

Investors adjusted expectations in February, as they attempted to decipher how tariffs, government austerity, and unresolved regional wars affect their investments and portfolios. As a result, market interest rates and equity prices declined based on how investors think those broader themes change future investment returns.

More Januarys than not seem to experience positive market returns. A few economic theories attempt to explain why this market anomaly could exist. One theory is some investors sell securities in December for tax purposes and turn into net buyers in January. Well, this January followed historical examples as global markets broadly earned investors returns in January, setting 2025 off with positive momentum.