The chart of the week examines one-year S&P 500 forward returns based on decile ranks of economic policy uncertainty. Recent weeks have brought increased volatility to U.S. equities as markets digest a barrage of news relating to tariffs, immigration policies, and potential federal government layoffs. Lingering uncertainty could have adverse effects if consumers pull back on spending or companies show hesitation to invest. Counterintuitively, forward-looking returns for the U.S. equity market have historically been highest during periods of elevated policy uncertainty. This is largely because equities tend to rally once investors gain more clarity and optimism returns to the market, particularly when strong corporate fundamentals remain in place.