Global equity markets finished the fourth quarter higher, with the S&P 500 gaining 2.7% for the quarter and 17.9% for the year. Domestically, strong corporate earnings and additional interest rate cuts supported the advance, though volatility surfaced as investors contended with delayed economic data following the government shutdown and renewed concerns about a possible bubble in the AI-trade. As illustrated in the table to the right, foreign stocks outperformed by a wide margin in 2025, an infrequent occurrence of late.