Market Commentary: Bird’s Eye View for Q3 2025

Equity market leadership shifted in Q2 2025 as large-cap growth stocks regained strength and international equities continued to perform well. In this five-minute video update, Frank J. Esposito, CFA, Managing Partner at EverNest, reviews key market drivers and risks.

Topics include:

• Valuations & concentration. U.S. stocks now trade near 30-year valuation highs, and the top 10 S&P 500 stocks make up 37% of the index. By contrast, international stocks remain attractively valued, trading at a 34% discount to U.S. equities.
• Earnings & tariffs. S&P 500 earnings growth is slowing, and rising tariffs—estimated at $270 billion—could further pressure profits and increase inflation, especially in sectors like autos and tech.
• Fixed income. Bond yields are historically high, offering opportunity without taking extra risk.
• Policy & economy. Policy uncertainty is high, driven by tariffs and new tax legislation. The labor market remains solid but shows early signs of stress.

This quarter, we’re also pleased to share a short video update from Niki Woodworth, Managing Partner, about our client service team—including some new faces to introduce: