Rosemeyer Management Group
September 2025 Market Snapshot
September in Review
All major asset classes experienced positive returns in September to round off a robust Q3, especially for equity markets. The S&P 500, the Dow, and the Nasdaq all closed at or near record highs. Momentum on Wall Street was focused on the Fed’s long-awaited interest rate cut with the central bank cutting their benchmark rate by 25 bps mid-month. Markets responded positively to this expansionary shift with the S&P 500 adding 3.65% for the month. International equities advanced on easing trade tensions between the U.S. and China. Bonds added 1% in September as well. Longer-dated bonds particularly enjoyed a healthy month due to declining interest rate yields.
| Index | 1 Month | YTD |
|---|---|---|
| Dow Jones Industrial Average | 2.00% | 10.47% |
| Standard & Poor’s 500 Average | 3.65% | 14.83% |
| Russell 2000 (Small Cap Index) | 3.11% | 10.39% |
| Total U.S. Stock Market | 3.46% | 14.45% |
| MSCI ACWI ex USA (Intl. Index) | 3.60% | 26.02% |
| Barclay’s U.S. Agg. Bond Index | 1.09% | 6.13% |
Looking Forward
We now enter Q4, which has historically been the strongest quarter for equity markets. As was expected, we saw the Federal Reserve cut interest rates for the first time since December 2024 at their September meeting. Inflation ticked up slightly in August from 2.7% to 2.9% largely in line with expectations. These modest inflation readings in conjunction with softening labor markets spurred the Fed to ease monetary policy.
Markets are expecting two more similar rate cuts in 2025 and potentially another one in 2026. While markets have been sitting near record-high valuations, continued strength of corporate earnings has so far validated positive investor sentiment. The Fed’s annual growth, beating investor expectations as well.
All eyes will continue to be on big banks until mid-October for any signs of softening growth or inflation. Meanwhile, headlines will center on the current U.S. government shutdown. Several upcoming data points – including inflation, employment, and GDP reports – may be delayed as a result. Any uncertainty could cause short-term market fluctuations; however, long-term trends remain aligned for the most part.
On a Personal Note
Joey Schultz continued to impress with his running bona fides. This month he participated in the Berlin Marathon, a world major marathon. He finished the race with a time of 2:39:40. Out of 55,000 runners, Joey finished in the top 500 — in the top 1% against runners from all over the world! Joey was able to enjoy the culture and sights while in Germany. We look forward to watching him continue to outperform the competition. Terrific job, Joey!
