U.S. equities advanced in October, with the S&P 500 Index rising 2.3%, extending its year-to-date gain to 17.5%. Large Cap Growth stocks outperformed, gaining 3.6%, while Large Cap Value added just 0.4%. Major U.S. indices, including the S&P 500, Dow Jones, Nasdaq 100, and Russell 2000, all marked their sixth consecutive month of gains, with several setting new record highs.
Market Commentary 8/06/25
The S&P 500 Index returned 2.3% in July, pushing its year-to-date return to 8.4%. Large Cap Growth stocks led the gains, increasing by 3.7%, while Large Cap Value increased by just 0.6%.
Utilities was the top-performing sector, with the Technology, Industrials, and Energy sectors also outperforming the S&P 500. Defensive sectors underperformed, with Health Care, Consumer Staples, and Communication Services all trading lower.
International stocks underperformed the S&P 500 as the U.S. dollar strengthened. Developed Markets fell 2.1%, while Emerging Markets returned 0.7%.
Bonds posted a slight loss as Treasury yields increased. The U.S. Bond Aggregate declined 0.3%, with longer maturity Treasury bonds underperforming the index. Corporate bonds outperformed as credit spreads tightened, with investment-grade falling 0.1% and high-yield gaining 0.1%.
Strong Second Quarter Earnings & Trade Agreements Send Stocks to All-Time Highs
Stocks climbed to new highs in July, with the S&P 500 and Nasdaq both posting six consecutive record closes late in the month. Investor sentiment improved after better-than-expected second-quarter earnings and trade agreements with Japan and the EU, with tariff rates on the deals less severe than feared.
Market breadth improved early in the month as smaller companies outperformed the S&P 500. However, by the end of July, market leadership was top-heavy again, with the Magnificent 7 gaining over 5% after leading AI firms reported strong second-quarter earnings. Volatility remained subdued for most of July, and the VIX fell below 15, signaling investor confidence but also showing investor complacency.
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The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market value weighted index with each stock’s weight in the Index proportionate to its market value.
The CBOE Volatility Index® (VIX®) shows the market’s expectation of 30-day volatility. It is constructed using the implied volatilities of a wide range of S&P 500 index options. This volatility is meant to be forward looking and is calculated from both calls and puts. The VIX is a widely used measure of market risk and is often referred to as the “investor fear gauge.
The NASDAQ Composite Index measures the market value of all domestic and foreign common stocks, representing a wide array of more than 5,000 companies, listed on the NASDAQ Stock Market.
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The S&P 500 Index advanced 0.2% in November, its seventh consecutive monthly gain. Large Cap Growth declined 1.8% as AI-related names came under pressure, while Large Cap Value rose 2.7%. The Russell 2000 and the Dow Jones Index both outperformed the S&P 500 as mega-cap tech stocks weighed down the index.
Market Commentary 11/12/25
U.S. equities advanced in October, with the S&P 500 Index rising 2.3%, extending its year-to-date gain to 17.5%. Large Cap Growth stocks outperformed, gaining 3.6%, while Large Cap Value added just 0.4%. Major U.S. indices, including the S&P 500, Dow Jones, Nasdaq 100, and Russell 2000, all marked their sixth consecutive month of gains, with several setting new record highs.