A year of somewhat volatile gains for bonds provided a sharp counterpoint to the volatility global stocks experienced over the past year:

• Equity markets fully recovered from the tariff-induced plunge in Q1. U.S. stocks continued to lag international developed equities in the quarter, just about matching the pace of emerging market stock gains. Investors saw another Growth-led quarter for U.S. stocks, as big-cap Technology names regained some mojo lost in Q1.
• Bond prices wavered against changing macroeconomic tides (or thoughts thereupon), while still providing handsome gains for the prior 12 months. The yield curve broadly steepened over the past year as the Federal Reserve cut interest rates early on, while investors pondered the long-term effects of a growing U.S. debt load and capricious policymaking, their concerns reflected in generally rising longer-term yields. Meantime, credit spreads rebounded (narrowed) after a tariff-induced surge earlier in the year.