Chart Book August 2025

Perspectives – September 10, 2025

Global equities advanced in August on the back of strong corporate earnings, moderating inflation and expectations for lower interest rates. As measured by the S&P 500, U.S. stocks rose 2.0% despite weak labor data, tariff concerns, and persistent inflation. U.S. equity markets were lifted by Fed Chair Jerome Powell’s dovish Jackson Hole remarks that fueled hopes for a September rate cut. International developed market equities were up 4.3% and emerging market equites were up 1.6%, as both were propelled by a weaker U.S. dollar. Sector performance was mixed as information technology lagged following reports of limited financial returns from most corporate AI pilots, while materials led gains on trade progress and stronger manufacturing. Healthcare outperformed thanks to attractive valuations and positive company-specific developments.