Tariff Plan Triggers Market Selloff

Highlights include:

• At the beginning of April, the White House announced a comprehensive tariff plan that alarmed investors and led to a swift market decline.
• Headline news surrounding the implementation of broader tariffs, along with the uncertain business environment and lower consumer sentiment, has increased market volatility.
• In the first quarter of 2025, U.S. stocks, as measured by the S&P 500 Index, had already declined 5%. By the end of the first week in April, the S&P 500’s year-to-date loss quickly increased to 13% through April 4th.
• While it may be challenging to remain invested in uncertain times, consider this fact: Since 1980, the average decline for the S&P 500 Index within a single year has averaged 14%. Yet, in 34 out of those 45 years—75% of the time—the market posted a positive annual return.¹
• Also consider the market rally on April 9, 2025. With news of a temporary pause on some tariffs, the S&P 500 Index jumped 9.5%. Had an investor sold out of stocks during the global reaction to the tariff announcement, they would have missed the market’s largest one-day gain since 2008.

¹JPMorgan Guide to the Markets, March 2025

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Katharine E.W. Dudley, AIF^®
Senior Vice President, Client Advisor

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