U.S. Tariffs Announcement and Market Reaction

The breadth and scale of the Trump Administration’s tariff announcements last week, as well as the methodology used in determining the tariffs, caught markets by surprise. The significant escalation in trade tensions and extreme trade policy uncertainty has triggered a sharp market selloff, especially in the U.S.

• The S&P 500 Index was down 9.1% last week and 13.4% year-to-date, and the NASDAQ Index lost 10.0% for the week and 19.1% year-to-date.
• While non-U.S. developed market equities declined by 6.9% last week, performance was up by 1.7% year-to-date.
• Similarly, emerging markets lost 2.9% for the week but kept a positive return of 1.8% year-to-date.

Elevated market volatility is likely to persist for some time given concerns about an economic slowdown and the risks of higher inflation. MMBB continues to monitor the markets carefully and remains focused on managing assets in a prudent manner in the face of tremendous uncertainty.

As we navigate the ever-changing landscape of the financial markets, it is important to remember the benefits of staying invested for the long term and avoid making investment decisions in reaction to market volatility which is a natural part of investing. Markets have historically rewarded patient investors, and investing for the long term in a well-diversified portfolio can result in a better outcome. For members who are near retirement or in retirement, MMBB’s financial planning specialists are available to work with you to align your financial resources and needs.

For members currently receiving a monthly annuity payment from MMBB, a reminder that there is no change to the payout value until January 2026. MMBB strives to maintain stability of the payout value over time, and features such as the reserve and the guarantees are useful mechanisms to manage volatility.