Inflation, interest rates, and tariffs have all contributed to investor sentiment in 2025
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As we embark on the latter half of 2025, we can start to reflect on the weight tariffs have put on broad-market sentiment. Thanks to a V-bottom from April lows, all three major indexes sport a 1% or more year-to-date gain. Leading the pack is the S&P 500 Index (SPX), up 2.8% in 2025. Trailing behind are the tech-heavy Nasdaq Composite (IXIC) and Dow Jones Industrial Average (DJI), with 2025 leads of 1.8% and 1%, respectively.
This past week ushered in a close monitoring of U.S. and China trade talks, which resulted in preliminary "success" following extensive conversations that President Donald Trump claimed were "done." Bejing was less enthusiastic, though China’s Ministry of Commerce said the first meeting had taken place to address trade concerns between the two countries – with a particular focus in rare earth licenses. A slew of sectors have been affected by tariff volatility, with an emphasis on manufacturing, apparel & retail, basic materials, commodities & mining, and automotive.
Aside from tariffs, persistent inflation, interest rate rhetoric, pulled guidance, and now, geopolitical tensions have all had an impact on investor sentiment. Courtesy of Finviz, below are two lists of the 10 best and 10 worst 2025 performers. Each stock is classified by as $10+ per share with an average volume of more than 1 million, sorted by year-to-date returns.
Topping the list is fintech stock and cryptocurrency specialist DeFi Development (DFDV), which on May 22 hit a record peak of $53.88 – almost 90 times its April low. Last week DFDV announced a $5 billion equity line of credit via RK Capital Management, with hopes to garner and grow its overtaking of Solana (SOL). Moving swiftly out of penny stock territory has subjected the equity to volatile swings, per the candles below, though the ascending 50-day moving average has captured the stock’s steeper pullbacks.
It’s hard to ignore Oklo (OKLO), just days after announcing a lucrative nuclear energy contract with the Air Force. Even in the subsequent sessions, OKLO has held near all-time high levels, consolidating above prior highs around $60. Also in the top 10 are holistic healthcare specialist Kindly MD (NAKA), China-based education provider Quantasing Group (QSG), and LiDAR manufacturer Aeva Technologies (AEVA), suggesting high-risk, high reward growth stocks still have the potential for game-changing moves even as all these headwinds swirl.
Pivoting to the list of 2025 losers, conservative media stock Newsmax (NMAX) is the worst performer in 2025 within the metrics outlined, down over 84%. NMAX went public on March 31, its initial public offering (IPO) was priced at $10, the shares opened at $14 and currently trade at $12.24. Another notable laggard is MicroStrategy (MSTR) short exchange-traded fund (ETF) Defiance Daily Target 2x Short MSTR ETF (SMST), interesting that a vehicle designed to bet against Bitcoin (BTC) – one of the riskiest assets out there – is swimming in red ink.
Safe-haven assets like gold and boring bank stocks are outperforming in 2025 per the heat map above. What the map doesn’t show, and what our tables above indicate, is that there’s still a world for growth stocks to make moves. A market that rewards both de-risking and speculation is a robust market with opportunity everywhere. A lot can happen in five-and-a-half months, but so far, if risky stocks can withstand trade deal drama, geopolitical tensions, inflation, and any other unforeseen calamity, then they could be setting up for a flourish to end the year.