The US equity market, coming off strong returns in 2023 and 2024, is now trading near fair value. According to ClearBridge, this leaves little room for further gains unless macro risks, especially trade tensions, begin to resolve.
US equity markets are showing signs of fatigue in the second half of 2025 as rising tariff pressures threaten corporate profitability. Despite touching record highs earlier in the year, ClearBridge Investments sees limited upside for stocks through year-end, with attention shifting toward a more favourable 2026.
Scott Glasser, CIO at ClearBridge Investments, highlighted tariffs as the central risk for the remainder of 2025. “We believe tariffs remain the key risk to corporate profits in the second half of the year and are less concerned about geopolitical events or the outlook for fiscal and monetary policy,” he says.
