U.S. equities rebounded from a weak July to post modest gains in August, overcoming periodic volatility related to inflation, interest rates, and geopolitical developments. Corporate fundamentals remained exceptionally strong, with second-quarter earnings for S&P 500 companies increasing approximately 34% from the prior year - the strongest earnings growth since 2021. Encouragingly, earnings revisions were once again broadly positive across large, mid and small companies. The economic backdrop also remained supportive, as continued expansion in US manufacturing activity, healthy consumer spending and a resilient labor market reinforced confidence in the durability of the economic expansion.