U.S. markets experienced a turbulent Q1, as concerns about impending tariffs, inflation and economic growth amid the backdrop of geopolitical tensions spooked investors. Although the S&P 500® achieved three all-time closing highs, the index subsequently dipped briefly into correction territory in March. A rally on the final trading day of the month was a welcome relief, but The 500™ closed out the quarter with a 4% decline, posting its worst quarterly loss since 2022.
Mid and small caps fared worse than their large-cap peers, with the S&P MidCap 400® and S&P SmallCap 600® falling by 6% and 9%, respectively. Uncertainty over the economy and future trajectory of potential Fed rate cuts weighed on investor sentiment.
Sector performance was mixed for the quarter. Energy, Health Care and Consumer Staples led the way, while Information Technology and Consumer Discretionary dropped by 13% and 14%, respectively. Notably, Energy and Utilities were the only sectors to post gains in March. dashboard-us-2025-03
