Global stock markets began the second quarter of 2025 with a sharp sell-off. The losses were triggered by the tariff-related shock that resulted from Donald Trump’s Liberation Day announcement. This announcement was made on April 2 when most global stocks markets were closed. President Trump’s announcement included a series of tariffs that were materially higher than most analyst estimates. This led to a significant spike in market volatility the following day as the S&P 500 fell by nearly 5% while the Nasdaq plunged by close to 6%. International markets were also hit by the tariff announcements with the Euro Stoxx 600 index falling 2.6% and the Nikkei 225 falling nearly 3% in the trading session that followed Liberation Day. Stock market losses accelerated the following week with global indices plunging on Monday April 7th. The Euro Stoxx 600 index fell 4.5% while the Nikkei 225 fell nearly 8%. The heightened volatility was driven by several concerns including the potential for trade wars, rising geopolitical tensions, and tighter financial conditions triggered by rising bond yields. However, the global stock market rout was very short lived because on April 9th, President Trump announced 90-day pause on most tariffs. This pivot by President Trump set the stage for a huge rally in global equity markets in the months that followed. This allowed most of the major developed world stock markets to finish the second quarter in positive territory.