As President Trump’s tariff policies raise concerns of economic slowdown and market volatility, the S&P 500 dipped into correction territory with a 4.6% loss in Q1 2025, marking its worst quarter since 2022. The tech-heavy Nasdaq saw a sharper decline, down 10.4%. Amid this turmoil, AQR Capital's hedge funds, including a 9.7% gain from its Delphi Long-Short Equity strategy, outperformed the market. Investor sentiment remains fragile as upcoming tariff announcements, inflation fears, and potential recession loom, with financial experts emphasizing a cautious approach to portfolio management given the emotional nature of current trading dynamics.