Last week, equity markets experienced significant volatility due to the announcement of a 25% tariff on all non-U.S. made autos, which is set to take effect on April 3. This move led to a decline in shares of automakers and parts suppliers, particularly in countries with large auto exposure like Germany and South Korea. Additionally, consumer confidence waned, and core PCE prices increased more than expected, suggesting higher inflation pressures and further dampening investor sentiment. Personal spending came in softer than expected, indicating higher prices might be impacting consumer behavior. Despite these challenges, corporate profits are rising, and the private sector continues to add jobs at a healthy pace. The Federal Reserve is maintaining a wait-and-see approach before taking any further action with respect to interest rates. Once the focus on tariffs passes, there is potential for pro-growth policy measures being announced in the second half of the year. Given the heightened uncertainty in the markets, it remains prudent to ensure portfolios are sufficiently diversified.