It has been nearly three years since we first used the term “AI Revolution” in our quarterly update. Today, artificial intelligence has become part of our daily conversation, and its potential impact is increasingly compared with other transformative periods in history, including the Industrial and Railroad Revolutions of the 1800s.
As we have discussed with our Private Clients, periods of significant innovation rarely move in a straight line. AI has the potential to drive meaningful change, greater productivity and efficiency, and substantial economic opportunity. History also reminds us that transformative periods can bring excesses and, ultimately, corrections along the way. We believe both the opportunities and the risks deserve close attention as this next chapter unfolds.
Markets delivered a mixed picture during the latest quarter. The S&P 500 and Nasdaq advanced more than 2%, while the Dow and international markets moved lower. The more significant move occurred in fixed income, as changing expectations for Federal Reserve policy, persistent inflation concerns, and growing attention to government debt weighed on bond prices. Broad fixed-income indexes declined nearly 5% during the quarter.
Our team anticipated some of these pressures and adjusted fixed-income positioning during the second quarter. As always, our focus remains on looking beyond short-term market movements and positioning portfolios thoughtfully for both the opportunities and risks ahead.
Feel free to pass this onto any investor friends or colleagues. Onto the 4th quarter!
Quarterly Market Review: Q3 Market Review 2026
