The third quarter of 2025 marked measured progress across global markets.
Equities advanced as earnings held up and inflation continued to cool, while bond markets stabilized alongside a more patient Federal Reserve. Commodities and digital assets reflected selective risk‑taking as investors balanced opportunity with discipline.
At Bradley Wealth, we interpret market moves through the lens of purpose and planning.
Read on to explore how the state of the market evolved in Q3, what it means for investors today, and how to position yourself for a successful close to 2025.
We’ll cover equities, fixed income, commodities, digital currencies, the broader economic and policy backdrop, and practical takeaways designed to support long‑term success.
Equity Markets Saw Steady Progress and Broadening Leadership
Equities remained resilient through Q3, supported by easing inflation, constructive earnings, and improving market breadth. Market leadership broadened beyond the most prominent technology names as investors favored quality balance sheets and consistent cash flow.
U.S. Equities
The S&P 500 reported a total return of about 8.1% for the quarter, while the Dow Jones Industrial Average rose roughly 5.3% and the Nasdaq Composite delivered an 11.68% total return. Gains were led by technology and industrials, with quality and profitability factors in favor.
Key takeaways:
- S&P 500 +8.1% (total return)
- Dow Jones Industrial Average +5.3%
- Nasdaq Composite +11.68%
International and Emerging Markets
Developed markets were modestly positive, while emerging markets benefited from a softer U.S. dollar and improving local policy outlooks. Performance varied by region, with India and parts of Latin America stronger, and Europe mixed.
Key takeaways:
- Weaker dollar provided a tailwind to EM assets
- Policy easing abroad helped support local risk assets
Fixed Income Is Adjusting to a Changing Rate Environment
After two volatile years, Q3 brought welcome stability to bonds. The Federal Reserve’s September meeting emphasized data dependence, and market‑based yields eased from prior highs.
Interest Rate Overview
Yields moved lower across the curve into quarter-end, with the 10‑year Treasury hovering in the low-4% range and short rates edging down as policy expectations shifted. The curve showed early signs of normalization as recession odds receded.
Key data:
- 10‑Year Treasury yield near the low-4% range at quarter end
- 2‑Year Treasury yield eased from prior peaks
- Bloomberg U.S. Aggregate Bond Index positive on the quarter
Global Bond Performance
Outside the U.S., sovereign yields followed a similar path. The ECB signaled caution, and the Bank of Japan continued gradual normalization. Credit spreads narrowed modestly on steady fundamentals.
Key takeaways:
- Investment‑grade credit outperformed governments on carry and spread compression
- Emerging market debt benefited from dollar softness
Commodities: Gold Shines as Energy Softens
Commodities told a two‑sided story in Q3: precious metals rallied on safe‑haven demand and lower real‑rate expectations, while oil drifted as supply increases met temperate demand.
Precious Metals
Gold set fresh record highs during the quarter and logged substantial year‑to‑date gains, supported by central‑bank buying and a softer dollar. Silver also advanced, aided by improving industrial demand.
Key takeaways:
- Gold strength tied to lower real yields and strategic demand
- Silver participation reflected improving manufacturing tone
Energy and Broader Commodities
Crude oil prices averaged in the high‑$60s to low‑$70s per barrel across the quarter as OPEC+ supply signals and softer demand balanced the tape. Industrial metals were mixed but steadied alongside manufacturing indicators.
Key data:
- Brent crude averaged ~$70/bbl in July and high‑$60s in August/September
- Industrial metals stabilized on modest factory data improvements
Digital Currencies Offer Quiet Strength in a More Regulated Landscape
Digital assets regained footing in Q3 as macro volatility eased and regulatory clarity improved in key markets.
Market Performance and Trends
Bitcoin ended September around the low‑$110,000s, with the monthly average near $113,000. Ethereum also advanced during the quarter amid steady institutional participation.
Key data:
- Bitcoin’s September average price ~$113k
- Ethereum traded near the ~$4,000 level into quarter end
- Institutional research points to growing integration of digital assets in portfolios
Economic Policy and Landscape
The macro backdrop remained constructive. Growth held up as inflation cooled, and policymakers emphasized a patient, data‑driven stance.
Growth, Inflation, and Employment
The BEA’s third estimate showed real GDP growth of 3.8% in Q2 2025. The advance estimate for Q3 is scheduled for release on October 30, 2025. Core inflation indicators continued to ease into late Q3, while the labor market normalized from very tight levels.
Key takeaways:
- Q2 real GDP +3.8% (third estimate)
- Q3 GDP (advance) due Oct. 30, 2025
- Cooling inflation and stable employment supported household demand
Fiscal and Monetary Policy Drivers
The Federal Reserve’s September meeting and Summary of Economic Projections pointed to a data‑dependent path forward, with rates expected to remain restrictive but less likely to rise further in the near term. Markets interpreted the stance as constructive for a soft landing.
Key Takeaways From Market Data
Across asset classes, Q3 underscored the value of balance, patience, and disciplined diversification. The environment looks more like normalization than boom or bust.
What the Data Tells Us
- Equities: Broader market leadership and resilient earnings
- Fixed Income: Stabilizing yields and positive core index returns
- Commodities: Precious metals strength, moderating energy prices
- Digital Assets: Gradual institutional integration with persistent volatility
Closing Reflection for Scottsdale Investors
At Bradley Wealth, our purpose is to guide clients toward a deeper sense of confidence, clarity, and intention in every financial decision.
We believe true wealth is defined not simply by numbers, but by the peace of mind and direction that come from aligning finances with personal purpose.
As a Scottsdale-based firm, we take pride in being part of the community we serve, supporting investors who value long-term relationships and purposeful planning.
Our advisors are committed to helping clients convert financial success into meaningful outcomes that support both their families and their futures.
Discover your true wealth — schedule a private consultation with us today.
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