The Monthly Market Update is part of our ongoing commitment to investor education and research. These posts often spark discussion and provide insight into our perspective on current financial markets and economic events.
Most Recent Update
Major stock indices were down in September with mixed results for the third quarter. Bonds declined as persistent inflation and the Federal Reserve’s first rate increase since 2023 pushed interest rates higher. The 10-year U.S. Treasury yield has risen 1.34 percentage points since the U.S.-Iran conflict began in late February. Further pressuring interest rates is […]
Stocks increased in August with the S&P 500 finishing the month up 2.6% and the Dow Jones Industrial Average closing the month up 1.3%. In a twist from the ongoing AI narrative, software stocks were a driving factor, with the iShares Expanded Tech-Software Sector ETF increasing 16.3% in August. For comparison, the iShares Semiconductor ETF, […]
Continue Reading ›Markets spent the month balancing continued enthusiasm for AI-driven investment with shifting macro, geopolitical, and positioning risks. AI remained the dominant theme, supported by hyperscaler compute demand, cloud and data-center spending, and ongoing corporate commitment to infrastructure. Leadership, however, was uneven. Semiconductor and memory names were volatile, with sharp drawdowns before stabilizing late in July, […]
Continue Reading ›The S&P 500 closed June down 1.1%, a muted end to a strong quarter. Concerns on the sustainability of the AI boom offset positive developments in the Iran conflict. A fragile ceasefire between the U.S. and Iran and some increased shipping traffic through the Strait of Hormuz led to a large decline in oil prices. […]
Continue Reading ›U.S. stocks moved higher in May, with the S&P 500 capping off nine consecutive weeks of gains. The market’s upward momentum was fueled by red-hot artificial intelligence (AI) stocks, as investors remained largely unperturbed by continued shipping disruptions in the Strait of Hormuz. Beneath the surface, however, the S&P 500 increasingly represents a concentrated bet […]
Continue Reading ›Over the past several weeks, U.S. equities generally moved higher, rebounding from an earlier slump and getting an additional lift as Middle East headlines tilted toward de-escalation. The S&P 500 (+10.42% in April) and Nasdaq (+15.29% in April) pushed to fresh highs at points, although the advance often felt narrow, with mega-cap technology and semiconductors […]
Continue Reading ›Stocks and bonds declined in March as conflict in the Middle East drove up prices for a broad set of commodities, from fertilizers and plastics to natural gas and oil. Pre-war, the Strait of Hormuz, handled roughly 20% of global crude oil and 20% of the world’s liquified natural gas (LNG). While global oil stockpiles […]
Continue Reading ›The S&P 500 declined 0.87% in February, after a modest increase in January. Market dynamics were driven less by index‑level movements and more by sector‑specific shifts. Software and consulting companies were under pressure amid rising concerns about potential disruption from accelerating advances in artificial intelligence. Losses deepened following the publication of a pessimistic AI scenario […]
Continue Reading ›January marked a solid start to the year for markets with the S&P 500 closing up 1.4% and the Dow Jones closing up 2.1%. Unlike the concentrated trend of 2025, stocks seemed to broadly rise with the equal weight S&P 500 index outperforming the traditional S&P 500, which is weighted based on market size, by […]
Continue Reading ›Stocks posted another year of gains in 2025. As investors look to 2026, many of the same core themes apply: tariff policy, interest rates, and AI. The April tariff-driven selloff, which pulled the S&P 500 down 15% earlier in the year, proved short-lived as concerns regarding corporate profits and consumer spending failed to materialize. In […]
Continue Reading ›This month’s macroeconomic discussion is centered on the recent government shutdown, Federal Reserve policy, and consumer dynamics. The longest government shutdown in U.S. history concluded after 43 days, following Congress’s approval of a stopgap spending bill effective through January 30. While the shutdown itself was not a major market driver, it resulted in a significant […]
Continue Reading ›The Federal Reserve delivered its second consecutive 25-basis-point rate cut on October 29, lowering the federal funds rate to a range of 3.75%–4%. However, Chair Jerome Powell emphasized that another cut in December is “not a foregone conclusion,” reflecting a growing divide among policymakers. The decision comes amid persistent inflation—CPI rose to 3% year-over-year in […]
Continue Reading ›The third quarter saw continued momentum in the AI trade, falling interest rates, and more trade deals reached with foreign nations. In September, the Fed announced its first rate cut of 2025, cutting the policy rate by 0.25%. This cut was widely expected given weak employment data. As rate cuts materialize, stocks and the economy […]
Continue Reading ›