Commentary

Third Quarter 2025 Quarterly Market Update

Market summary: Stocks rallied amid policy fluctuations.

By: Fidelity Asset Allocation Research Team

Updated: 7/16/2025

Key Takeaways

Markets: US and global equities rallied in Q2, led by large-cap growth stocks and high-yield bonds, despite policy-driven volatility.
Economy: The US economy remains in expansion, but inflation risks persist due to tariffs and tight labor markets.
Investments: Portfolio managers are modestly overweight risk assets, favoring gold and TIPS to hedge stagflation risks.
Valuations: US stock valuations remain elevated; analysts believe non-US equities and bonds offer more attractive long-term value.

Get the full white paper

Third Quarter 2025 Quarterly Market Update

Next steps to consider

AART Team Insights

Access economic, fundamental, and quantitative analysis from our Asset Allocation Research Team.

Learn more

Fidelity Portfolio Quick Check

Analyze, compare, and optimize your investment strategy in minutes with our free on-demand digital portfolio analysis tool.

Learn more

Investments & portfolio construction

Manage client portfolios with greater efficiency and impact with our broad universe of portfolio construction solutions and investment products.

Learn more

For important information, see the full linked content.

1213192.1

56F14BCD10AC49809D55C6C771CCAED0

Past performance is no guarantee of future results.

Unless otherwise expressly disclosed to you in writing, the information provided in this material is for educational purposes only. Any viewpoints expressed by Fidelity are not intended to be used as a primary basis for your investment decisions and are based on facts and circumstances at the point in time they are made and are not particular to you. Accordingly, nothing in this material constitutes impartial investment advice or advice in a fiduciary capacity, as defined or under the Employee Retirement Income Security Act of 1974 or the Internal Revenue Code of 1986, both as amended. Fidelity and its representatives may have a conflict of interest in the products or services mentioned in this material because they have a financial interest in the products or services and may receive compensation, directly or indirectly, in connection with the management, distribution, and/or servicing of these products or services, including Fidelity funds, certain third-party funds and products, and certain investment services. Before making any investment decisions, you should take into account all of the particular facts and circumstances of your or your client’s individual situation and reach out to an investment professional, if applicable.

The use of the term "advisor(s)" throughout this site shall refer to both investment advisors and broker-dealers as a collective term.