MARCH MARKET REVIEW

March market review

The equity market remained turbulent through March, with the
S&P 500 dipping into correction territory – 10% off its February peak –
largely spurred by tariff policy uncertainty and related fears of potentially
rising inflation and dwindling growth.

At its March meeting, the Federal Open Market Committee
(FOMC) left target interest rates unchanged, raising inflation expectations for
2025 and lowering growth forecasts through 2027. Chairman Jerome Powell
indicated that if growth falters, rate cuts would not be delayed.

In addition to easing Fed policy and a healthy earnings
outlook, March also saw oil prices touch six-month lows, thanks partly to the
success of Chinese EV production and perceived US market weakness resulting
from impending tariffs.

The bottom line

Turbulence is expected to continue until the markets have a
chance to adjust to policy changes, which will require clarity from the
administration. Time will tell if tariffs will stand as indicated, or if they
will be lessened or removed amid ongoing negotiations with the countries and
industries affected. Equities may continue moving sideways as the market reacts
to headlines and eventually settles at a historically normal bottom for
pullbacks of this nature.

Kent Pendleton, AAMS®

Financial Advisor, RJFS

Pendle Hill Advisors LLC

14375 Liberty St, Ste 109 | Montgomery,
TX 77356

T 936-297-8267

Kent.Pendleton@raymondjames.com | www.raymondjames.com/pendlehilladvisors

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