Fiera US SMID Cap Growth Q1 2025 Commentary

May 2, 2025 | Market Commentary, Public Markets
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Photo Matthew Navins
Client Portfolio Manager, Fiera Apex

US equity market returns generally turned negative for the first quarter of 2025 with the S&P 500 falling -4.30%. However, there was a huge divergence in performance by style.

U.S. equity markets declined in Q1 2025, with the S&P 500 down -4.30%, though performance varied sharply by style and size. Growth stocks underperformed significantly, with the Russell 1000 Growth Index down nearly -10% versus a +2.14% gain for value stocks. Smaller-cap growth indices fared even worse, reflecting broad weakness in high-momentum names and tech-heavy segments. Amid concerns about stretched AI valuations and policy uncertainty, investors rotated toward companies with more stable earnings, modest leverage and reasonable valuations.

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