September was another positive month for markets, as the S&P 500, Dow, and Nasdaq set new record highs. The international story was similar, with developed and emerging markets gaining for the month. Short-term interest rates also fell in September, as the Fed resumed cutting rates at its mid-month meeting. Markets anticipate one or two additional rate cuts by year-end.

Despite volatility early on, the S&P 500, Dow, and Nasdaq were up low- to mid-single digits for August. These results brought markets to record highs and indicated continued investor demand for U.S. stocks. International stocks also ended the month in positive territory, as risk assets rallied. Even bonds were up, as falling interest rates supported bond prices.

Markets continued to rally in June, capping off a solid quarter for investors. The S&P 500, Dow, and Nasdaq were up for the month and the quarter, supported by the continued cooling of trade war rhetoric. The story was similar internationally, as a solid June contributed to a positive quarter for both developed and emerging market stocks. On the economic front, updates released in June were broadly positive. The May jobs report showed continued solid hiring during the month, and consumer sentiment surged to a four-month high.

Markets rallied in May, with the S&P 500, Dow, and Nasdaq up low- to mid-single digits for the month on solid fundamentals and reduced policy worries. Further, the average earnings growth for the S&P 500 during the first quarter was 13.5 percent, more than twice the initial estimates. The economic updates were also broadly positive. The April job report revealed continued solid hiring, and inflation showed signs of improvement, as consumer prices rose by less than expected.

April saw significant market fluctuations driven by tariff and interest rate concerns, with the Nasdaq showing a small gain while the S&P 500 and Dow Jones finished lower. Internationally, foreign stocks rebounded after initial sharp declines, resulting in positive overall performance for developed and emerging markets. Bond markets also experienced volatility, but the 10-year Treasury yield ended slightly lower, supporting bond prices for the fourth consecutive month. While there was earnings growth for the S&P 500, declining business and consumer sentiment raised concerns about future spending.

March was a tough month for U.S. stocks, as all three major indices were down for the month and quarter. Bonds performed better, as falling interest rates supported prices, and developed and emerging markets both ended the quarter positively. Hiring and inflation also improved, and the solid economic backdrop should keep driving earnings growth. Despite this, we continue to face uncertainty—including tariff concerns and weakening consumer confidence.

February was a tough month for U.S. markets. The S&P 500, Dow Jones, and Nasdaq all fell, with the Nasdaq getting hit the hardest. Despite the disappointing month, fundamentals showed signs of positive momentum, boosted by a strong jobs report and fourth-quarter earnings growth. Markets, however, still face real risks—including policy uncertainty, debt ceiling concerns, and the planned rollout of tariffs.

Markets rallied in January as improving fundamentals supported stocks. The S&P 500, Dow Jones, and Nasdaq ended the month in positive territory, and the story was similar internationally as developed and emerging markets rebounded. The healthy economic backdrop supported strong earnings results, and the solid labor market bolstered consumer confidence. While the market rally was welcome, investors still face real risks, including policy uncertainty with tariffs and potential market volatility.

The S&P 500 and Dow were both down in single digits in December, while the technology-heavy Nasdaq eked out a modest gain. Developed and emerging markets showed small losses during the month, and fixed income also had a weak end of the year. The central factor in these results was rising long-term interest rates, which hit valuations across the board. And although the Fed lowered interest rates in December, it indicated fewer planned interest rate cuts in 2025. 

Markets rallied in November as investors poured into U.S. stocks following the 2024 election results. All three major U.S. indices ended the month in positive territory, with the S&P 500 and Dow showing record highs. While it was a great month for U.S. investors, international stocks ended down, and developed and emerging markets fell. On the economic front, personal spending and retail sales growth came in strong, and service sector confidence rose to a two-year high.