Both stock and bonds enjoyed a strong third quarter of 2025, adding significantly to half-year gains. After a sell-off early in the year, leadership was restored by the large technology companies.

Both stock and bonds enjoyed a strong third quarter of 2025, adding significantly to half-year gains. After a sell-off early in the year, leadership was restored by the large technology companies.

Both stock and bonds enjoyed a strong third quarter of 2025, adding significantly to half-year gains. After a sell-off early in the year, leadership was restored by the large technology companies.

Looking like a reversed videotape of sinking ships, stocks fully recovered from their sharp, early April drop by quarter-end. 

New tariffs announced by President Trump yesterday evening have hit stocks hard, with overseas markets off in the 2-3% range and the S&P 500 down more than 3% at the open.

New tariffs announced by President Trump yesterday evening have hit stocks hard, with overseas markets off in the 2-3% range and the S&P 500 down more than 3% at the open.

Financial markets were choppy in the first quarter, with stocks showing significant weakness in the second half.  The S&P 500 ETF declined by 4.3%, on a par with the weak start to 2022. 

After hitting an all-time high on February 19th, the S&P 500 index has slid more than 8%, and almost 6% just in March, leaving it down about 5% this year. The technology-heavy NASDAQ index has fallen more sharply and now is off about 10% year-to-date.

Following earlier-year gains, stock and bond markets both encountered more challenging conditions as 2024 drew to a close.  Thayer client portfolios performed solidly over the year, with robust stock gains, resilient bond returns and a helpful contribution from income strategies.

Donald Trump’s dominant win and return to power, and possible Republican sweep of Congress, are creating notable reverberations in financial markets.