AlexSecret/iStock via Getty Images Market Overview US equities ended lower in a volatile quarter as shifting market sentiment between fears of a prolonged war in Iran and hopes for a quick resolution spurred considerable uncertainty about the path of inflation and economic growth. The US Federal Reserve (Fed) held interest rates unchanged during the quarter, with the Fed's quarterly "dot plot" in ...
AlexSecret/iStock via Getty Images Market Overview US equities ended lower in a volatile quarter as shifting market sentiment between fears of a prolonged war in Iran and hopes for a quick resolution spurred considerable uncertainty about the path of inflation and economic growth. The US Federal Reserve (Fed) held interest rates unchanged during the quarter, with the Fed's quarterly "dot plot" in March showing only one projected interest-rate cut in 2026. However, Fed Chair Jerome Powell stated that the central bank's outlook for interest rates, inflation, and the labor market was highly uncertain as policymakers grapple with the economic implications of the war in Iran and the inflationary effect of high oil prices. Growth stocks significantly underperformed their value counterparts over the quarter, as investors rotated toward cyclicals and more defensive areas of the market amid anxiety about the disruptive influence of AI on the technology sector, particularly software and data-services companies. Fears spread to private-equity firms and lenders with significant exposure to the software industry, with several funds seeing redemption pressures and limiting withdrawals. Economic data released during the quarter was mixed, but the economy remained on a firm footing. The US Supreme Court struck down President Donald Trump's global tariffs, undercutting his key economic policy and setting the stage for a prolonged legal battle for as much as US$170 billion in tariff refunds for importers. President Trump immediately responded with 10% tariffs on most foreign imports to the US for a period of 150 days. The Russell 1000 Growth Index returned -9.78% for the period. Within the Index, 7 out of 11 sectors fell over the period. Financials and information technology were the bottom-performing sectors, while energy and consumer staples were the top-performing sectors for the quarter. Performance Summary ▪ The Hartford Large Cap Growth ETF underperformed the Russell 1000 Growt...