In August 2025, markets saw a boost as the Federal Reserve hinted at possible interest rate cuts, which helped stocks, bonds, and some commodities perform well. Even though U.S. economic data was weaker than expected and there was political pressure on the Fed, investor confidence improved, with major stock indexes like the S&P 500 posting gains. Many types of investments—including mortgage-backed securities, corporate bonds, high yield credit, CLOs, and emerging markets—delivered solid returns for the month, showing that a broad range of asset classes benefited from the anticipation of easier monetary policy and a more positive outlook for investors.
