Third Quarter 2025 Review

The third quarter brought a blend of slower growth and strong corporate earnings results.

The Fed began easing rates while inflation pressures moderated, helping extend a market rally grounded in earnings strength rather than speculation. Corporate profitability remains robust—with 94% of S&P 500 companies reporting profits—and productivity continues to improve.

Meanwhile, households remain healthy and the “wealth effect” is supporting steady consumption. In our view, the mix of lower rates, resilient spending, and rising productivity continues to favor the outlook for risk assets.