Business Insights

After a strong start to the year in the first quarter, the stock market has reversed course as the path of Fed rate cuts has become more uncertain and Middle East tensions have risen. The S&P 500 gained 10.2% in the first quarter of the year before declining 4.4% so far in the second quarter. Despite recent volatility, the market has still made significant gains over the past year and a half. Over time, the markets have historically risen – however, they don’t do so in a straight line. Investors should always be prepared for market uncertainty, especially if geopolitical conflict escalates or inflation continues to exceed expectations.