Research Analysis
AI vs. Tariff Shocks: How Our Models Adapted to US Trade Turbulence
In early April 2025, the US administration introduced significant changes to tariff policies affecting key trading partners. These measures triggered immediate reactions across global markets, with the S&P 500 reflecting a swift and pronounced response.
This analysis aims to dissect the drivers behind strategy performance based on signals from the S&P 500 YTD (01-01-2025 to 16-04-2025). To ensure a robust assessment, we selected one of our off-the-shelf strategies with a weekly rebalancing frequency—striking a balance between responsiveness and noise reduction. This cadence allows us to attribute performance more confidently to the effectiveness of our signals multiple times throughout the analysis period.
We explored how the strategy navigated this volatile environment, what led to its outperformance, and why the model favoured certain stocks and sectors throughout the evaluated time window.
