October can be a great time of the year, not just for the vibrant autumn leaves but also for the sports enthusiast. As an avid New York sports fan, it was recently exciting to watch my two favorite teams play on the same day. The New York Yankees faced a do-or-die playoff game while the New York Rangers hosted their first game of the season. Yankees Captain Aaron Judge came through with a game tying home run and the Yankees went on to win and fight another day (although sadly their season ended when they eventually lost the series to the Blue Jays).
In much the same way, financial markets seemed like they were “hitting it out the park” during the third quarter 2025. Aided by a Fed funds interest rate cut and strong corporate earnings, large cap U.S. stocks as measured by the S&P 500 returned 8% during the quarter while small cap U.S. stocks (Russell 2000 Index) surged over 12%. International equities as measured by the MSCI World Ex-US and MSCI Emerging Markets indices gained 6% and 12% respectively. On the fixed income side, U.S. bonds, as measured by the Bloomberg Aggregate Index returned a respectable 2% and the corresponding international bond index was also positive for the quarter. Some commodities also performed well, including very strong gold and silver price appreciation. Shortly after quarter end, gold surpassed $4,000 a troy ounce for the first time.
While valuations look elevated in many S&P 500 sectors, corporate earnings have also been strong. With September quarterly earnings now rolling in, the S&P 500 may be on track to record its fourth consecutive quarter of at least 10% year-over-year EPS growth.
With that said, we are mindful that market volatility can return at any time. According to a recent JP Morgan Asset Management’s historical chart, since 1980, the average intra-year declines of the S&P 500 have been 14.1%. This year is no exception, and it is easy to forget that by early April the S&P 500 had declined nearly 19% from its February high. Our role as financial advisors in times like these is to help clients navigate uncertainty with clarity and confidence. We can provide perspective during volatility and also identify opportunities that can emerge during market pullbacks. Staying diversified and focused on fundamentals is as important as ever.
Sources: FactSet, JP Morgan “Guide to the Markets 4Q 2025”
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Christopher Perry is an investment adviser representative of CJ Perry Financial. The firm is a registered investment adviser and only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability.
The information presented on this post is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. Comments should not be construed as an offer to buy or sell, or a solicitation of an offer to buy or sell the investments mentioned. A professional adviser should be consulted before implementing any of the strategies discussed. Investments involve varying degrees of risk, and there can be no assurance that any specific investment or strategy will be suitable or profitable for a client's portfolio. All investment strategies can result in profit or loss.
