2025, Q1 | Market Commentary

Summary

U.S. large-cap stocks gained 2.8% in the first month of 2025 while U.S. small-cap stocks rose by 2.6%. U.S. intermediate-term bonds rose by a modest 0.5%.
Preliminary reports show the U.S. economy growing at a slower-than-expected pace in the fourth quarter of 2024. Headline inflation, driven by rising energy prices, rose to 2.9% in December.
DeepSeek’s open-sourced AI model rivals OpenAI’s ChatGPT at a lower cost, potentially reshaping the AI landscape by making advanced AI more accessible.
Trump’s return to the White House generated over 100 executive orders, including withdrawals from the WHO and Paris Agreement, major immigration changes, and the creation of the Department of Government Efficiency to address the U.S. fiscal deficit.