S&P 500 Posts Worst Quarter Since 2022 Amid Tariff Fears
The S&P 500 dropped 4.6% in Q1 2025 – its worst performance since 2022 – amid fears of new tariffs from President Trump, while global markets and several high-profile political and economic developments added to the uncertainty.
Published on April 1, 2025
In the first quarter of 2025, the S&P 500 fell 4.6%, marking its worst quarterly decline since Q3 2022. The drop came amid mounting concerns over new tariffs proposed by President Donald Trump, triggering a volatile response in global markets. European markets fared somewhat better, while Asian counterparts experienced mixed outcomes, reflecting widespread unease about the evolving trade policies.
Additional developments added to the complex economic landscape. Far-right leader Marine Le Pen was sentenced for embezzlement of EU funds, a ruling that could derail her 2027 presidential ambitions. Meanwhile, technology and innovation sectors are in focus as DeepMind reportedly limits its research publications to sharpen its competitive edge. Meetings such as the one between Denmark’s foreign minister and the US secretary of state, along with investment initiatives by the UK Pension Protection Fund and Barclays’ private credit partner AGL facing challenges, continue to shape the broader context. On April 1, 2025, Sam Mendes’s Holocaust documentary made its premiere, underscoring the timeless need to remember historical atrocities.