July 22, 2025By Julie Biel, CFA

The Tariff Recoil: True Rally or Reflex?

Market Review 2Q2025 | KayneCast 287

“The way that I would describe this rally is a bit of a FOMO rally where many managers feel they have to be invested in this market because it’s so strong, but also a relief rally where things are probably not going to be as catastrophic as had been feared, and we can continue to pursue and dive into this market and chase it.”

Each quarter, Julie Biel, CFA, Chief Market Strategist, offers her perspective on the underlying forces driving the market.  Listen to her most recent episode where Julie recaps market activity during 2Q 2025, focusing on these areas:

  • The sharp market rebound driven by investor optimism around generative AI and a more measured tone on tariffs from the administration
  • Outperformance in momentum and high-beta stocks, while quality names lagged—highlighting a narrow, narrative-driven rally
  • The scale back of capital expenditures by many companies reflects growing uncertainty around tariffs

For more insights, read our 2Q 2025 Commentary or subscribe to KayneCast where we provide the latest updates from the KAR Investment Team on our investment strategies.

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