Equity markets sharply declined after the April 2nd “Liberation Day” tariff announcement before recovering a portion of the drop by month-end. The worse-than-expected tariff news targeting key U.S. trading partners raised fears of rising inflation and a slowdown in economic growth. The prospect of resulting stagflation fueled a “risk off” trading environment that initially was reflected in a sharp downturn in the technology sector encompassing many large cap market leaders. However, as the month progressed and news emerged of potential tariff deals combined with a generally constructive earnings season, markets broadly recovered recapturing the bulk of Liberation Day tariff declines. However, we are concerned that the economic impacts of tariffs have yet to be fully felt which could include further pressure on economic growth and corporate earnings. We continue to think it likely that the U.S. economy may experience a short-term soft patch with associated elevated market volatility but remain optimistic about longer-term potential as focus shifts to expected upcoming tax reform and deregulation initiatives.