Uncertainty ahead

It has been a Jekyll-and-Hyde start to 2025. Analysts and investors are bracing for more drama in the second half.

S&P 500 futures point to a weak opening on Tuesday, but the benchmark index is on a winning streak, having closed on Monday at another record. But the dollar has had its worst start to the year in more than a half-century as some investors sweat a possible return of the “sell America” trade instigated by President Trump’s trade war.

Amid this split screen, Trump has stepped up his attacks on the Fed and its chair, Jay Powell. The threat to the central bank’s independence could jolt global investors’ nerves.

A recap: Coming into the year, Wall Street hoped that Trump’s business-friendly agenda of slashing taxes and regulations would propel stocks.

But while the S&P 500 is up more than 5 percent this year, tariff uncertainty has rattled business executives, consumers and investors. And the fate of the Republican policy bill that is central to Trump’s domestic agenda remains unclear as the legislation awaits a vote in Congress.