The S&P 500 gained 2.1% in August, extending its year-to-date return to 10.7%. Led by a 3.2% gain in Large Cap Value stocks, Growth trailed with a more modest 1.2% return. Health Care emerged as the best-performing sector, helping to lift the index, while Utilities and Technology lagged.
Market Commentary 9/25/25
Fed Rate Cut and Historic Tightness in Credit Spreads
Last week’s Federal Reserve rate cut was widely anticipated, but the market reaction underscored just how unusual today’s credit environment has become.
Corporate credit spreads, already compressed by historical standards, tightened further, underscoring investor appetite for corporate bonds even as Treasury yields remain elevated.
Credit Spreads at Multi-Decade Lows
Corporate borrowers are paying risk premiums not seen in decades. Investment-grade spreads have fallen to 0.77%, a level last observed in 1998 and far below the long-run average of roughly 1.30%. Additionally, high-yield spreads, at 2.79%, are similarly depressed, marking their tightest level since 2007 and sitting well below the median of 4.59% since 1996.
This divergence highlights the unusual dynamic of today’s market: investors are willing to accept historically low compensation for corporate risk even as concerns about U.S. fiscal sustainability keep Treasury yields elevated. In effect, corporations are viewed as safer bets than the sovereign balance sheet they borrow against.
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Market Commentary 9/11/25
The S&P 500 gained 2.1% in August, extending its year-to-date return to 10.7%. Led by a 3.2% gain in Large Cap Value stocks, Growth trailed with a more modest 1.2% return. Health Care emerged as the best-performing sector, helping to lift the index, while Utilities and Technology lagged.
Tom Erb Named One of AdvisorHub’s “100 Solo Advisors to Watch in the U.S.” for Third Consecutive Year
Oxford Harriman & Company proudly announces that Tom Erb, a Senior Managing Director and Partner, has once again been recognized on AdvisorHub’s list of the “100 Solo Advisors to Watch in the United States” for 2025. This marks the third consecutive year (2023-2025) that Erb has earned this national distinction, underscoring his commitment to delivering exceptional service and guidance to his clients.