U.S. stocks posted solid gains during the month and quarter, setting record highs amid signs of progress in trade tariff talks. After falling over 19% to an April 8 low from its previous all-time high in mid-February, the S&P 500 rose to new records just two months later as investors’ worst growth and inflationary fears associated with President Trump’s reciprocal tariffs mostly evaporated. It hasn’t been clear sailing however, as Wall Street has had to digest slowing consumer spending trends, artificial intelligence competition from China, and pronounced U.S.

U.S. stocks ended broadly higher in August, with the S&P 500 posting its fourth consecutive monthly gain and registering five new 2025 all-time highs during the month. Notably, the small-cap-focused Russell 2000 had its best month since last November, widely exceeding the S&P 500’s performance by over 5% in August. The small cap index also advanced for a fourth month, its longest winning streak since 2021.