Quarterly report
Large caps and Growth outperform during Q2 amid renewed optimism for US equities
The second quarter of 2025 saw a moderation of the inflation and growth concerns that had emerged during Q1 in anticipation of the potential impact of US tariff policy. While markets sold off on the early-April announcement of reciprocal tariffs, they quickly rebounded when those tariffs were paused. This and businesses’ frontrunning of imports helped to stave off the full economic impact of tariff risks in Q2.
Key highlights:
- Large caps continue to lead in Q2
- Growth outperforms Value
- Tech and Discretionary rebound
- Earnings outlook improves
- Valuations re-rate
- Russell IPO inclusion activity remains subdued
Authored by FTSE Russell’s Global Investment Research team, this quarterly publication provides a deep-dive into the performance and key market drivers of US equities, viewed through the lens of Russell large-cap (Russell 1000), small-cap (Russell 2000), Growth and Value indexes. It's part of a series of reports, available by email as soon as they are published.
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