Quarterly Market Commentary

In this commentary, we recap the fourth quarter’s defining themes and events, review performance across key market areas, and look ahead to 2026.

The first quarter was eventful for markets. Stocks traded higher to start the year, with the S&P 500 posting modest gains in January. However, the markets traded lower in March due to escalating geopolitical tensions in the Middle East and the Strait of Hormuz closure, which led to a spike in oil prices.

In this commentary, we recap the fourth quarter’s defining themes and events, review performance across key market areas, and look ahead to 2026.

Markets carried their strong momentum from the second quarter into the third quarter, with the S&P 500, Nasdaq, and Russell 2000 each hitting new highs. Investor sentiment remained optimistic despite soft labor market data and mixed economic signals, and stocks traded higher due to strong corporate earnings, the Federal Reserve’s resumption of rate cuts, and easing trade tensions.