Monthly Download: September 2025

Markets rallied in September as the Fed delivered its first rate cut since December 2024. The combination of weaker job market data leading to higher probabilities of Fed cuts with continued strength in AI-related earnings and outlook created a powerful offset to a calendar period that can historically be weak for risk assets. Oracle’s earnings release and outlook added a new name to the AI story, driving growth stocks significantly over other areas of the market. Fixed income returns benefited across the board from a modest decline in interest rates and municipal bonds recovered some of their relative underperformance in 2025.