On July 4, 2025, President Trump signed the One Big Beautiful Bill Act into law, making permanent certain tax cuts originally enacted in 2017 that were set to expire, extending others and adding new tax cut provisions. While the bill was widely anticipated to pass, it removed one factor of uncertainty for investors and was generally bullish overall.

Coming into Q2, equity markets were in decline as investors anticipated President Trump’s tariff “Liberation Day” announcement on April 2nd.

As the Trump administration started enacting its policies, investors appeared to rethink their bullishness.  By mid-February, U.S. large caps reached their near-term peak and started to trend lower.