Equity markets earn their way to gains.
August 2025 monthly market commentary.
Equity markets earn their way to gains
Global equities, as measured by the MSCI ACWI Index, finished in positive territory in August amid optimism regarding generally positive corporate earnings news and anticipated monetary policy easing by major central banks. Developed markets modestly outperformed emerging markets.
he Far East was the strongest-performing region within the developed markets for the month, benefiting primarily from strength in Hong Kong and Singapore, while Japan led the market rally in the Pacific region. North America posted a positive return, but was the weakest performer among the developed markets due to relative weakness in the U.S. Latin America was the top emerging-market performer in August as Colombia and Chile garnered double-digit gains. Conversely, the Gulf Cooperation Council (GCC) countries recorded negative returns, most notably in the United Arab Emirates (UAE) and Kuwait. Eastern Europe’s underperformance was due to a market downturn in Poland.1
Global fixed-income assets, as represented by the Bloomberg Global Aggregate Bond Index, gained 1.5% (in U.S. dollars) in August. High-yield bonds led the U.S. fixed-income market, followed by investment-grade corporate bonds, mortgage-backed securities (MBS), and U.S. Treasurys. Treasury yields moved lower across the yield curve, with the exception of the 30-year bond, which ticked up 3 basis points (0.03%) for the month. Yields on 2-, 3-, 5-, and 10-year Treasury notes fell by corresponding margins of 0.35%, 0.31%, 0.28%, and 0.14% to 3.59%, 3.58%, 3.68%, and 4.23%, respectively. The yield curve ended the month flat (3-month yields were equivalent to 10-year yields).2
1 All equity market performance statements are based on the MSCI ACWI Index.
2 According to the U.S. Department of the Treasury. As of August 31, 2025.
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IMPORTANT INFORMATION
This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding SEI’s portfolios or any stock in particular, nor should it be construed as a recommendation to purchase or sell a security, including futures contracts.
There are risks involved with investing, including loss of principal. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Narrowly focused investments and smaller companies typically exhibit higher volatility. Bonds and bond funds will decrease in value as interest rates rise. High-yield bonds involve greater risks of default or downgrade and are more volatile than investment-grade securities, due to the speculative nature of their investments.
Diversification may not protect against market risk. Past performance does not guarantee future results. Index returns are for illustrative purposes only and do not represent actual portfolio performance. Index returns do not reflect any management fees, transaction costs or expenses. One cannot invest directly in an index.
Information provided by SEI Investments Management Corporation, a wholly owned subsidiary of SEI Investments Company (SEI).