HSBC’s global research team noted that the US economy's outlook worsened in March, leading to significant market volatility. The S&P 500 (SP500) saw its largest monthly decline in over two years, driven by mounting concerns over President Trump’s aggressive tariff agenda and a slowing economic recovery.

The economic slowdown was further exacerbated by a rise in inflation, with the Personal Consumption Expenditures (PCE) price index jumping to 2.54% year-over-year in February. The core PCE inflation, excluding food and energy, surged even higher to 2.8% year-over-year, up from the previous month. HSBC economists are predicting that core PCE inflation will remain above 2.5% for the remainder of 2025, signaling persistent pressure on consumer prices. 

Amid these inflationary concerns, the investment institution stated that Q1 earnings are about to kick off on Wall Street, with forecasts anticipating that earnings will slow noticeably from last quarter.

Q1 earnings projections are mixed, with a sharp 7.8% decline in earnings per share from the previous quarter, but a 7.2% increase compared to Q1 2024. Additionally, sales growth estimates for the first quarter show a 4.3% decrease from Q4 2024, although they are projected to rise 4.0% year-over-year. 

These economic strains, coupled with trade uncertainties, are casting a shadow over investor sentiment, prompting fears of a potential slowdown in US economic growth. 

In order to track the pulse on the broader market see below a grouping of market tracking and fixed income focused exchange traded funds. 

Market tracking ETFs: (NYSEARCA:DIA), (NYSEARCA:DDM), (NYSEARCA:DOG), (NYSEARCA:DXD), (NYSEARCA:SDOW), (NYSEARCA:SPY), (NYSEARCA:VOO), (NYSEARCA:IVV), (NYSEARCA:RSP), (NYSEARCA:SSO), (NYSEARCA:UPRO), (NYSEARCA:SH), (NYSEARCA:SDS), (NYSEARCA:SPXU), (NASDAQ:QQQ), (NASDAQ:QQQM), (NYSEARCA:QLD), (NASDAQ:TQQQ), (NYSEARCA:QID), and (NASDAQ:SQQQ). 

Fixed Income Funds: (NASDAQ:TLT), (NYSEARCA:TLH), (NASDAQ:IEF), (NASDAQ:IEI), (NASDAQ:SHY), (NYSEARCA:SGOV), (NYSEARCA:SCHO), (NYSEARCA:BIL), (NYSEARCA:AGG), (NASDAQ:BND), (NASDAQ:VCIT), (NYSEARCA:MUB), (NASDAQ:MBB), (NYSEARCA:JNK), (NYSEARCA:LQD), (NYSEARCA:HYG), and (NYSEARCA:TIP).