Markets finished 2025 on a strong footing, despite a notable rise in volatility driven by the prolonged U.S. government shutdown and concerns around AI-related valuations. Data ultimately pointed to continued underlying economic resilience and steady growth, while the Federal Reserve met investor expectations by delivering interest-rate cuts that helped ease financial conditions. Strong corporate earnings growth provided a supportive backdrop for risk assets, and international equities and fixed income also posted positive results. Looking ahead, the broader investment landscape remains constructively positioned as we move into 2026, with increasingly broad-based earnings growth, improving productivity driven by AI adoption, and a Fed that is firmly oriented toward easing creating a supportive environment for both stocks and select areas of fixed income.
