October 2, 2025
U.S. equities advanced during the third quarter and have registered above-average gains for the year, boosted by strong corporate earnings and prospects for monetary and fiscal stimulus. Fixed income investments also recorded positive returns for the quarter and year-to-date as interest rates fell for bonds of all maturities. The resilience that characterized the U.S. economy over the past year persisted through the recent quarter, while many overseas economies struggled to achieve meaningful growth. The investment outlook will be shaped importantly by evolving trade policies, inflation trends and AI’s impact on productivity, but a continuation of the global economic expansion appears likely.