Fourth-quarter earnings results have been generally solid so far, albeit a bit weaker relative to prior quarters when it comes to beat rates and price reactions. On the international front, weakening global ties may lead to economic disruption and lasting investment implications. Meanwhile, bond market volatility has remained low despite economic and policy uncertainty.
Investors are navigating not just uncertainty, but an unstable environment influenced by tariffs and inflation, among other factors. While volatility may increase, there is likely room for another solid year in 2026, especially for fixed income and international stocks
While stock and bond markets wait for U.S. federal data to become available again, private-sector reports suggest lukewarm overall economic growth.
The stock and bond markets are taking the government shutdown—and lack of data releases—in stride, but how long the calm might last is an open question.
A Federal Reserve rate cut won't necessarily lower longer-term bond yields or mortgage rates.
U.S. economic growth slowed decisively in the first half of the year amid concern about rising tariffs, although corporate fundamentals have remained strong.
