U.S. equity markets closed out the final trading day of the quarter with a slight gain amid government shutdown concerns. It was a stellar Q3, thanks to optimism surrounding Fed rate cuts, Big Tech strength and robust consumer spending, with the S&P 500® up 8%. Despite ongoing trade negotiations coupled with inflation and labor market worries, The 500™ notched 23 record closing highs, also marking its best September performance in 15 years.
Bolstered by the tailwind of recent and expected Fed rate cuts, the rally broadened to mid and small caps, with the S&P MidCap 400® up 6% and the S&P SmallCap 600® up 9%.
Most sectors outperformed in Q3, led by Information Technology and Communication Services, while Consumer Staples lagged.dashboard-us-2025-09
