This Weekly Financial Markets Update reviews the top market headlines: Core Inflation Rate Steady in August, Mortgage Rates Hit 11-Month Low, IPO Market Rebounds
  • The CPI rose 2.9% on a year-over-year basis in August
  • The 30-year fixed mortgage rate dropped to 6.35% last week
  • More than $21 billion in IPO proceeds were raised in the first half of 2025

Top Three Market Headlines

Core Inflation Rate Steady in August: The U.S. Bureau of Labor Statistics reported last week that the Consumer Price Index (CPI) increased at a 0.4% monthly pace in August, faster than the 0.2% rate reported for July. On a year-over-year basis, the CPI rose 2.9% in August, up from 2.7% in July and the fastest annual pace since January. Key contributors to rising prices in August were shelter, food, and energy, which posted monthly increases of 0.4%, 0.5%, and 0.7%, respectively. The closely-watched core CPI, which excludes food and energy items, was stable from the prior month, however, rising 0.3% on the month and 3.1% versus the prior year, both unchanged from July.

Mortgage Rates Hit 11-Month Low: The weekly average 30-year fixed mortgage rate fell to 6.35% last week, an 11-month low, according to Freddie Mac. This compares to a 2025 high of just over 7.00% in January. The latest drop follows a corresponding decline in the 10-year U.S. Treasury note yield keyed by sluggish job reports and expectations the Federal Reserve will soon cut interest rates. Amid the falling rates, Freddie Mac reported that home purchase applications reached the highest annual growth rate in more than four years last week, which could provide a shot in the arm for the sluggish housing market, where existing home sales are on pace for one of the slowest years in decades.

IPO Market Rebounds: The market for initial public offerings (IPOs) picked up steam last week, when seven large issuers raised more than $4.0 billion combined, led by a $1.4 billion offering from fintech company Klarna. This represented a nearly four-year record in activity, according to Renaissance Capital. The resurgence follows a three-year period of below average IPO issuance through 2024, with the latest activity building on strong momentum in the first half of 2025, when over $21 billion in IPO proceeds were raised. In a sign of the market's current strength, several of the year's largest IPOs are trading at more than double their offering price, including CoreWeave and Circle.

As of September 12, 2025 Week Quarter-To-Date Year-To-Date One-Year
MSCI All Country World 1.74% 6.15% 16.82% 20.03%
S&P 500 1.60% 6.38% 12.98% 19.23%
Russell 2000 0.27% 10.47% 8.50% 14.11%
MSCI EAFE 1.15% 4.25% 24.52% 18.53%
MSCI Emerging Markets 3.96% 8.87% 25.49% 25.78%
FTSE NAREIT Equity 0.66% 4.72% 4.45% -1.59%
Bloomberg Commodity 1.41% 2.61% 8.29% 13.34%
Bloomberg U.S. Aggregate 0.41% 2.28% 6.40% 2.87%

US Census Bureau 9/11/2025, US Dept' of Labor 9/11/2025, Bloomberg 8/4/2025, WSJ 9/8/2025, Freddie Mac 9/11/2025, Renaissance Capital 9/9/2025 & 6/14/2025. Data from Morningstar Direct. Returns for periods greater than one year are annualized. Investment advisory services are offered by Gallagher Fiduciary Advisors, LLC ("GFA"), an SEC registered investment advisor that provides retirement, investment advisory, discretionary and independent fiduciary services. Registration as an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the SEC. GFA is a limited liability company with Gallagher Benefit Services, Inc. as its single member. GFA may pay referral fees or other remuneration to employees of Arthur J. Gallagher & Co. or its affiliates or to independent contractors; such payments do not change our fee. Neither Arthur J. Gallagher & Co., GFA, their affiliates nor representatives provide accounting, legal or tax advice. GFA does not express an investment opinion regarding any specific commodity, sector or individual security. Unless otherwise expressly noted, the contents of this communication do not constitute securities or investment advice, nor should this communication be construed as an opinion regarding the appropriateness of any investment. The information provided cannot take into account all the various factors that may affect your particular situation, therefore you should consult your GFA consultant before acting upon any information or recommendation contained herein to discuss the suitability of the information/recommendation for your specific situation.