The third quarter of 2025 may best be characterized by continued strength in the equity market, moderating but resilient economic activity, and a shift in the Federal Reserve policy toward interest rate cuts.

Throughout the second quarter of 2025, global trade tensions caused by reciprocal tariffs and increasing unrest in the Middle East impacted the markets on a daily basis.

This graphic compares S&P 500 sector returns in 2024, along with each sector's weight in the index.

Stocks, bonds, cash equivalents, mutual funds, and ETFs - what do all these terms mean to you?