February opened with increased market volatility as rising layoffs, weakness in technology stocks, and uncertainty around AI’s impact on jobs weighed on investor sentiment. Key indicators including consumer spending, employment trends, and inflation data will be closely watched to help clarify the path ahead for the economy and markets.

January 2026 saw a strong but uneven start to the year as global equities rose and market leadership broadened beyond mega-cap stocks. International and emerging markets outperformed U.S. equities, supported by a weaker dollar and resilient corporate earnings. Commodities reflected heightened geopolitical tensions, while bonds delivered mixed results amid shifting expectations for Federal Reserve rate cuts. Investors remain cautiously optimistic as markets navigate policy uncertainty and global risks.

Markets hit new highs as the S&P briefly crossed 7,000, while gold and silver continued to rise amid a weaker U.S. dollar. The Federal Reserve held interest rates steady at 3.50%–3.75% after three consecutive cuts in late 2025, citing steady inflation and a stabilizing labor market. However, a sharp drop in consumer confidence and growing uncertainty around employment suggest that further rate cuts later in 2026 remain a strong possibility.

Today’s Market Minute unpacks rising tensions between the White House and the Federal Reserve, the DOJ’s investigation into Chairman Powell, and what it all means for market volatility. Despite early market jitters, major indexes finished the day higher—highlighting once again why long-term discipline matters more than short-term headlines.

We begin 2026 with markets navigating a complex mix of economic and geopolitical developments. From renewed scrutiny of federal welfare programs and spending to the arrest of Nicolas Maduro and its implications for global energy markets, investors are once again reminded how policy and politics can influence capital flows. After three consecutive years of strong U.S. equity performance, markets may remain cautious as they digest these events, with short-term volatility possible. We continue to monitor developments closely and remain focused on long-term portfolio positioning and financial planning.

2025 was a year defined by tariff-driven volatility, AI-led market leadership, and strong performance across global equities and real assets. Despite economic and geopolitical crosscurrents, diversified portfolios benefited from broad-based asset appreciation, with global stocks, precious metals, and private credit delivering standout results. As we look ahead, we remain focused on disciplined diversification amid evolving market and policy dynamics.

The Federal Reserve’s latest 25-basis-point rate cut has energized the markets while raising new questions about the path ahead. As policymakers balance rising inflation and softening employment, differing opinions within the Fed signal that future cuts may be harder to secure. This update breaks down the market reaction, policy implications, and what investors should watch as we move toward 2026.

Today’s release of employment data has many investors watching closely, as fresh payroll numbers could influence the Fed’s next move. Small‑caps are leading gains and value stocks are outperforming, but with economic signals still emerging, the outlook remains delicate. Analysts are interpreting a drop in private payrolls as a possible incentive for a December rate cut—raising important questions for equities, bonds, and the broader economy. Read on for a deeper look at what this could mean next.

November 2025 saw steady equity gains, easing bond yields, and rising volatility as markets awaited the Federal Reserve’s December rate decision. Strong corporate earnings and a robust year-to-date rally supported stocks, but consumer confidence continued to weaken amid inflation pressures and job concerns. Geopolitical tensions involving Russia, China, and the Middle East added uncertainty, while bond markets signaled expectations of potential rate cuts. As we head into December, investors are balancing hopes for a “Santa rally” against stretched valuations, policy risks, and signs of slowing consumer momentum.

October’s job report revealed a sharp rise in layoffs, with over 153,000 cuts—nearly triple last year’s total—driven by tech, warehousing, and retail sectors. As artificial intelligence reshapes industries and companies tighten budgets, consumer confidence and spending may face pressure. Coupled with Gallup data showing 60% of U.S. workers lack “quality jobs,” concerns about employment could weigh heavily on an economy fueled by consumer spending. The bottom line: when it comes to economic momentum, it’s all about jobs.

The first month of the fourth quarter is in the books. During October, capital markets rallied despite macroeconomic headwinds, with equities, bonds, and tech leading gains amid rate cuts and easing inflation.

Inflation is showing signs of easing, giving the Fed potential room to adjust interest rates. But with employment trends shifting and markets reacting, the coming months will be critical for the broader economy and investors alike.

Markets rebounded after a volatile week driven by U.S.-China trade tensions and ongoing government shutdown concerns. While President Trump hinted at potential new tariffs, China signaled readiness to endure them, easing some market fears. Despite political theater in Washington, the market continues to climb, with the Dow, S&P, and Nasdaq showing gains. Investors are reminded to maintain well-diversified portfolios, stay mindful of valuations, and keep an eye on debt and deficit levels as potential volatility factors.

Take a closer look at how everyday conversations and real-world data points can reveal shifts in the broader economy. From local business insights to national consumer trends—like Americans cooking at home more often—these indicators highlight how inflation and changing spending habits may be shaping the economic landscape.

In Q3, equity markets posted strong gains, with the S&P 500 up 8% and the Nasdaq hitting record highs, led by NVIDIA’s $4 trillion milestone. Small caps outperformed, growth led value, and emerging markets saw double-digit gains, while developed international markets lagged. The Fed cut rates for the first time since 2024, inflation pressures remain, and wealth concentration continues to drive an uneven economy. Despite political gridlock and a government shutdown, markets remain resilient, and investors are balancing elevated U.S. valuations with growing interest in international opportunities and inflation hedges.

The market’s rapid climb in 2025 has many investors recalling the late-1990s tech bubble. This article explores why market cycles often “rhyme,” the risks of overconcentration in popular stocks, and the importance of trimming gains to maintain balance. It highlights practical steps—like diversification, rebalancing, and tax-loss harvesting—and explains how Innovative Asset Advisors Group partners with clients and their CPAs to align investment moves with tax strategy.

August’s Personal Consumption Expenditures (PCE) data shows inflation rising slightly, from 2.85% to 2.91% over the past year. While this uptick is modest and does not signal runaway inflation, it keeps the Fed focused on balancing economic growth with its inflation target. Meanwhile, second-quarter GDP growth was revised upward to 3.8%, marking the fastest expansion in two years. With inflation stubborn but under control and the labor market showing signs of adjustment to technological shifts, the Fed faces a careful balancing act as it considers potential rate cuts in October.