Author: Jeff Covell

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February 2026

Looking back at the global equity markets in 2025, even though some trends we've seen for a few years continued, some interesting new changes took place. Here are some 2025 highlights; see the attached whitepaper for analysis.

  • US equity markets provided another year of strong performance in 2025. As measured by the S&P 500 index, the market returned 17.9% (on a total return basis), the third consecutive year of double-digit returns.
  • The first quarter of 2025 was volatile, followed by a strong rally for the rest of the year driven by the easing of tariff tensions and the Federal Reserve Board reducing interest rates.
  • Market concentration continued to increase, and tech domination drove a significant portion of the returns in the S&P 500.
  • After more than a decade of underperforming US stocks, international stocks staged a dramatic reversal.

Here are areas to watch as we move forward in 2026:

  • US Stock Market concentration
  • Impact of tariff policies on US and internationally
  • Federal Reserve interest rate policy
  • Artificial intelligence and unemployment
  • Geopolitical risks

GET THE WHITEPAPER

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