Market Comments

Ending 2025, US equity markets had enjoyed three consecutive strong years and were poised for continued upside.

Equity markets enjoyed a third consecutive year of gains, with the S&P 500 index advancing 17.9%.

We entered the third quarter amidst tariff uncertainties and concerns for a slowing economy. The economy has remained resilient, with quarterly GDP growth exceeding 3%.

The quarter began with “Liberation Day” tariffs which sent markets tumbling.

After six consecutive quarterly gains, the S&P 500 index declined 4.3% and the NASDAQ index dropped 10.3% in this year’s first quarter.

Despite a soft December, the U.S. equity markets closed the fourth quarter with a solid 2.4% gain. The benchmark S&P 500 generated a 25% return for the year.

The third quarter saw continued strength in financial asset returns, as economic data continued to show stable employment and gross domestic product growth amidst a slow, steady decline in reported inflation.

Driven by the insatiable investor demand for all things relating to Artificial Intelligence (AI), the S&P 500 index posted a solid second quarter and finished the first half of the year up 15.3%

The U.S. equity markets extended the late 2023 rally through 2024’s first quarter.

Federal Reserve Bank interest rate policy continued to have a disproportionate impact on the U.S. stock market over the final quarter of 2023.