Commentary

Second Quarter 2025 Quarterly Market Update

Market summary: Increased US policy uncertainty raises market anxiety

By: Fidelity Asset Allocation Research Team

Updated: 4/30/2025

Key Takeaways

Markets: Market anxiety skyrocketed as US policy uncertainty rose. Financial markets were impacted by tariff hikes, deregulation, and tighter immigration policies.
Economy: The global business cycle has become less synchronized. The US appeared to show mid- and late-cycle dynamics in the first quarter of the year.
Investments: Diversification in fixed income and non-US assets remains essential amid growth risks. Gold and commodities gained, while the US dollar drop boosted non-US equities.
Valuations: US stock valuations declined but remained high. Fixed income yields hovered around long-term averages.

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Second Quarter 2025 Quarterly Market Update

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