S&P 500 Set for First Quarterly Drop as Policy Changes Approach

As the end of Q1 2025 nears, the S&P 500 is on track for its first quarterly decline since 2023, influenced by upcoming policy shifts.

Anticipated Policy Changes

• Tariff Announcements: President Trump is expected to announce new tariffs on April 2, potentially raising tariff rates significantly.
• Federal Reserve’s Tapering Actions: The anticipated slowdown in the Fed’s balance sheet runoff is likely to impact market sentiment.

Market Implications

Investors should prepare for potential fluctuations as these shifts unfold, with analysts suggesting the S&P 500 may stabilize later this year.