Market Commentary: Bird’s Eye View for Q2 2025

Leadership shifted dramatically in the equity markets during Q1 as large-cap growth stocks stumbled and international markets demonstrated remarkable strength.

In this eight-minute video, Frank J. Esposito, CFA, Managing Partner at EverNest examines this pivotal market rotation against a backdrop of increasing economic concerns, policy uncertainty, and evolving investment opportunities both domestically and abroad.

Key ideas include:

• When examining market history, the concentrated performance of recent years appears to be an exception rather than the norm.
• It’s prudent to question the sustainability of AI-driven market enthusiasm and associated capital expenditures.
• Despite the stock leadership rotation, the top 10 stocks in the S&P 500 Index still constitute over 30% of its value.
• Small-cap stocks retreated during the quarter as economic concerns intensified.
• U.S. economic policy uncertainty has reached levels not seen since the pandemic, largely driven by evolving tariff policies.
• Despite economic concerns, the bond market performed well during the quarter as yields decreased in response to growth anxieties. Current yields remain attractive from a historical perspective.

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The information herein was obtained from various sources. EverNest does not guarantee the accuracy or completeness of information provided by third parties. The information in this report is given as of the date indicated and believed to be reliable. EverNest assumes no obligation to update this information, or to advise on further developments relating to it.