Helping you navigate the market's twists and turns.

February was marked by sharp rotation in the markets. Traditional software—particularly SaaS and enterprise names—underperformed as investors questioned whether AI could automate or erode their core value propositions, which raised long-term viability concerns.

The market gained in January, which is historically a bullish signal for forward returns. Signs of a more durable bull market emerged, highlighted by small-cap leadership, cyclical strength, and a value orientation.

Equities continue to benefit from rising earnings and an accommodative Federal Reserve. In mid-December, the Fed cut the short-term rate by 25 basis points (bps) to 3.75%, its third reduction since September, as slowing job gains pushed unemployment to 4.6%.

Markets experienced meaningful volatility in November as investors reacted to the extended government shutdown, uncertainty surrounding Federal Reserve policy, and growing questions about the long-term sustainability of AI-related capital spending.

The S&P 500 Index earnings picture remains strong, driven by Technology, Industrials, Utilities, and Financials. The earnings momentum and heavy capital expenditures made by companies have mostly been linked to the AI buildout.

The S&P 500 posted its fifth straight monthly gain, and the MSCI All Country ex-US Index of international stocks rose 3.87% in September, lifting its year-to-date total return gain to over 26%.