Investors had plenty to cheer about in September, and not just the arrival of football and pumpkin spice season.
Markets continued their upward momentum as the Fed officially made a move, cutting interest rates by 25 basis points. While some volatility emerged mid-month around the timing and magnitude of the cut, equities finished broadly higher as investors welcomed the shift in monetary policy. Economic data was somewhat mixed, as the labor market showed signs of cooling and inflation ticked slightly higher, but consumer spending remained resilient.
The Nasdaq 100 led the charge, surging 5.47% as tech companies benefit from renewed optimism around lower borrowing costs. The S&P 500 and Dow Jones Industrial Average followed suit with solid gains of 3.65% and 2.00% respectively, while the CRSP US Small Cap Index added a modest 0.96%. Growth slightly outpaced value for the month as investors rotated back into rate-sensitive sectors.
International markets delivered strong results in September as well. Emerging markets jumped 5.69%, buoyed by easing financial conditions and a weaker dollar, while developed international stocks gained 2.55%. European markets responded positively to their own central bank’s dovish stance, and Chinese stimulus measures helped support sentiment across Asia.
Bonds had a strong showing as falling rates pushed prices higher. Aggregate US bonds rose 1.09% as the 10-year Treasury yield declined from 4.23% to 4.16%. As the Fed cut rates, Chairman Jerome Powell emphasized a data-dependent approach while signaling additional cuts could be on the table if economic conditions warrant. Markets are currently pricing in two more cuts before year-end.
As we head into the final quarter of 2025, September’s rate cut marks a meaningful shift in the policy landscape after an extended period of elevated rates. While the path forward remains uncertain, this is precisely why maintaining a long-term perspective matters. Market conditions and Fed policy will continue to evolve, but staying focused on your financial plan and investment strategy can help you navigate whatever comes next with confidence.
There’s gold in them thar island.
A small Caribbean island is sitting on an AI goldmine. Home to just 16,000 people, Anguilla has become an unlikely beneficiary of the artificial intelligence boom thanks to its internet domains.
In the early days of the internet, Anguilla was awarded the country-specific website address of “.ai” purely by geographic happenstance.
Fast forward to today, companies are paying big bucks for sites than end in .ai. One entrepreneur paid a reported $700,000 to buy a specific domain for a potential new venture.
As the number of .ai domain registrations has doubled in the past year, it’s directly padded Anguilla’s bank account. The island expects to bring in close to $49 million in 2025 by selling this valuable online real estate.
Who knew two random letters could transform an island’s economic future?
Amazon’s going all-in on driverless vehicles.
Five years after acquiring Zoox for $1.3 billion, Amazon officially entered the US robotaxi race in September with the launch of its ride-hailing service on the Las Vegas Strip.
Alphabet has been the leader in the space so far, with its Waymo fleet pulling ahead, while Tesla and Uber have been testing services as well.
So what makes Zoox stand out (other than it’s Seussian name)? Unlike its competitors, Zoox’s electric robotaxi doesn’t resemble a car. There’s no steering wheel or pedals, and the vehicle has just two rows of seats that face each other.
Zoox taxis will start by transporting people between specific attractions on the strip, and it’ll be free until Amazon secures regulatory approval to charge for rides.
Looking ahead, the company is hoping to expand to San Francisco, Austin, and Miami soon.
Broad Market Returns
| Asset Class | 1 Month | 3 Month | YTD | 1 Year |
| S&P 500 (VOO) | 3.55% | 8.12% | 14.73% | 17.52% |
| NASDAQ (QQQ) | 5.38% | 8.96% | 17.88% | 23.67% |
| Large Cap Growth (VUG) | 4.69% | 9.52% | 17.27% | 25.52% |
| Large Cap Value (VTV) | 2.30% | 6.05% | 11.97% | 9.22% |
| Small Cap Growth (VBK) | 1.71% | 7.62% | 6.75% | 11.98% |
| Small Cap Value (VBR) | 0.40% | 7.50% | 6.97% | 6.17% |
| Developed International (VEA) | 2.55% | 5.61% | 27.49% | 17.17% |
| Emerging Markets (VWO) | 5.69% | 10.11% | 24.14% | 17.02% |
| REITs (VNQ) | 0.06% | 3.63% | 5.70% | -2.42% |
| Aggregate Bonds (BND) | 1.10% | 2.00% | 6.13% | 2.87% |
| Corporate Bonds (VCIT) | 1.23% | 2.65% | 8.10% | 5.17% |
| High Yield Bonds (JNK) | 1.04% | 2.42% | 7.30% | 7.06% |
| Long Term Treasuries (VGLT) | 3.05% | 2.46% | 5.78% | -3.49% |
| International Bonds (BNDX) | 0.53% | 0.55% | 2.56% | 2.72% |
Market Health Indicator
The Market Health Indicator (MHI) measures market health on a scale of 0 – 100, analyzing various market segments such as economics, technicals, and volatility. Higher scores indicate healthier market conditions.
Fun Facts
- Alaska’s coastline of around 34,000 miles is more than the combined total for the rest of the continental US.
- Warren Buffett bought his first stock at age 11, three shares of Cities Service Preferred, and later joked he started “too late.”
- Saturn is the least dense planet in our solar system, and is the only one that could float in water.
- Bubble wrap was invented in 1957 by engineers Alfred Fielding and Marc Chavannes with the original intent of creating a textured wallpaper.
– The Aspire Wealth Team
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