September 2025 Market Update

In this September market update, Chief Investment Officer Brian Andrew, CFA®, looks at how markets extended their strength last month, with the S&P 500 and Dow reaching new highs as corporate earnings held firm and small- to mid-sized companies began to outpace mega-cap leaders. Inflation ticked slightly higher to 2.9% amid rising energy costs and tariff pressures, but overall price growth remains well below the 2022 peaks. With the Federal Reserve widely expected to begin cutting rates this month, attention turns to how monetary policy, trade tensions, and shifting economic data will shape opportunities across equities, bonds, and housing. As we enter fall, we aim to provide a timely perspective to help you stay positioned for both near-term volatility and long-term growth.

Key Takeaways:

• Markets Stay Strong but Leadership Is Shifting
  Stocks hit new highs in August, with small- and mid-cap companies beginning to outperform mega-cap tech. Corporate earnings remain solid, supporting resilience in equity markets.
• Fed Pivot on the Horizon
  Inflation ticked up slightly to 2.9%, but overall trends remain under control. The Federal Reserve is widely expected to cut rates in September, likely kicking off an easing cycle that could reshape opportunities in bonds, equities, and housing.
• Risks and Opportunities Ahead
  Trade tariffs, consumer spending during the holiday season, and corporate earnings will be key drivers as we move into year-end. While volatility is likely, quality-focused, diversified portfolios are positioned to benefit from a soft-landing environment.

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