Commentary

Fourth Quarter 2025 Quarterly Market Update

Fidelity's Asset Allocation Research Team (AART) examines themes in global financial markets and presents its investment outlook in this Q4 2025 quarterly market update.

By: Fidelity Asset Allocation Research Team

Updated: 10/16/2025

Key Takeaways

Markets: Global equities hit record highs in the third quarter. Tech gains slowed, making earnings growth the key driver for broader market performance.
Economy: Expansion persisted despite softer US labor markets. Tariffs and AI have been shaping growth—and inflation risks.
Investments: Small caps, gold, and emerging markets led gains. Inflation hedges like commodities and TIPS may remain vital for portfolio resilience.
Valuations: US stocks have been trading above long-term averages. Non-US markets and bonds may offer relatively attractive entry points.

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Fourth Quarter 2025 Quarterly Market Update Presentation

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