The Investor Insight | Q3 2025

As of the writing of this commentary, equity markets have witnessed their biggest drawdown since early April (during the “Tariff tantrums”). On Friday of last week, indexes suffered a down day of nearly 3%, when the Trump administration announced additional responsive tariffs on China, halting what had looked like a promising negotiation between the US and China. This comes on top of a government shutdown, now two weeks long, which is making investors nervous about whether the growth path can continue.

Prior to the heavy selloff, large caps continued their rally through Q3’25, fueled by optimism around AI-led productivity gains and growing expectations that the Federal Reserve will continue its ratecut cycle. However, valuation risk, policy uncertainty, and global trade disruptions remain meaningful headwinds. Against this backdrop, U.S. small-cap equities, particularly those with domestic focus or exposure to tariff relief, appear positioned for asymmetric upside as monetary and trade conditions normalize. Read More

What’s Inside:
- The AI Arms Race: How Hyperscalers are Bridging the Compute Gap with Neo-Clouds
- Q3 2025 Market Commentary (continued)