Wall Street's Wild Ride into 2025

We are living in a world defined by rapid and accelerating change— political, economic, social, and technological. This is not a typical business cycle. We are in an era shaped by powerful megatrends, with artificial intelligence transforming industries, geopolitical shifts reshaping markets, and macroeconomic forces creating new uncertainties.

Despite the challenges, the U.S. economy outperformed its developed market peers in 2024, with real GDP growth reaching 2.8%. Consumer spending remained resilient, and unemployment stayed relatively low. Just weeks before the election, The Economist described the U.S. economy as the “envy of the world.”

After Donald Trump’s victory in November 2024, markets initially anticipated controlled inflation and a less restrictive monetary policy.

Fast-forward a few months to March 2025, and the optimism has faded. With capital markets reacting negatively to renewed trade war fears, over $4 trillion in market value has been erased since the S&P 500’s peak last month—a dramatic reversal from the bullish sentiment surrounding Trump’s agenda.

What happened at year-end, and what comes next?

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AIphaInsights

Research division of Alpha Impact 8 Ventures