Commentary and Research Papers
August 19, 2025
2024
U.S. equity markets saw broad gains in Q3, with all major indices posting positive returns. Notably, market leadership, which had been concentrated in large-cap tech, broadened as other sectors and asset classes joined the fun. This is reflected in the impressive performance of the equal-weighted S&P 500, up 9.1% for the quarter, surpassing the market-cap weighted S&P 500’s gain of 5.53%. Small cap companies also advanced, with the Russell 2000 rising 8.9%. The top-performing industries included asset managers, utilities, building products, REITs, property and casualty insurers, credit cards, and cruise lines. On the flip side, energy, semiconductors, software, money-center banks, department stores, steel, and autos lagged behind.
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August 19, 2025
2024
As we at Pinnacle Associates celebrate our 40th anniversary, we proudly reflect on the foundation of excellence we’ve built and the opportunities that lie ahead. Our investor commitment is unwavering, supported by an experienced and stable investment team and a time-tested investment approach that has successfully navigated many different market cycles. While the past year has been challenging, we feel strongly that we are poised to rebound and deliver the level of outperformance we have accomplished in the past, making this an ideal time to invest in our Small/Mid Growth (SMID) portfolio.
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November 4, 2025
2024
Stocks continued to advance in Q3, with strength broadening out and away from the almighty Magnificent 7. Key to the market breadth was growing expectations during the quarter for a Fed rate cut, which was ultimately confirmed when the Fed reduced rates by 50 basis points at its September meeting. The positive reaction to the long-awaited ease in rates trumped a negative turn in Mideast tensions, as well as continued uncertainty around the presidential election.
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August 19, 2025
2024
Similar to August, September started off on a weak note and subsequently rallied back to post solid monthly gains. During the first week of a seasonally difficult month, stocks fell nearly 5% on concerns about the health of the US economy after another weak employment report and poor manufacturing data. But stocks subsequently rebounded on improving economic indicators, positive inflation readings and the increasing possibility that the Federal Reserve Board might act more aggressively to cut rates at its upcoming meeting.
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Commentary and Research Papers
August 19, 2025
2024
Last week’s decision by the Federal Reserve to cut the federal funds rate by 50 basis points marks a significant moment in the central banks’ continual effort to manage the U.S. economy’s trajectory. This move reduced the benchmark rate to a range between 4.75% and 5%, positioning the Fed into a new phase of monetary policy. While rate cuts typically aim to stimulate growth in times of crisis, we caution against reading into the magnitude of this cut and whether it reflects concerns that go beyond merely fine-tuning inflation control.
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August 19, 2025
2024
Small capitalization stocks ended the summer on a weak note as August gave back some of the July gains. The Federal Reserve has moderated its aggressive interest rate stance, but investors are still cautious about inflation and the pace of future interest rate cuts. In addition, weaker economic data raised investor concerns about a potential economic soft landing.
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Founded in 1984, Pinnacle Associates, Ltd. is a forward thinking, multi-billion dollar investment advisory firm focused on transparency and putting clients first. We provide advice to individuals and families, institutional investors and other financial institutions.
