Key Trends Driving Markets Right Now

A lot has been happening in the markets lately and understanding what’s behind the movement can help you feel more confident about your long‑term financial plan. In this 2‑minute video, you’ll learn what’s been driving recent market growth.

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A white slide with centered dark blue text that reads, “Global markets have been on a strong bull run.” A short diagonal orange line appears to the left of the text as a decorative brand element.	Over the last three years, global markets have been on a strong bull run, rising 79% from October 2022 through the end of 2025.
A white slide with centered dark blue text that reads, “Increasing 79% from Oct 2022 through Dec 2025.” A short diagonal orange line appears to the left of the text as a decorative brand element.	Over the last three years, global markets have been on a strong bull run, rising 79% from October 2022 through the end of 2025.
Title: The Current Bull Market A line chart displays the FTSE All World Index Price from October 2022 through December 2025. The overall trend moves upward from roughly 360 to just above 680, showing strong growth over the period. The main price line is dark blue, with two additional highlight colors: • Yellow segments mark 12 market pullbacks, defined as drops between –2% and –10%. • Red segments mark 2 market corrections, defined as drops between –10% and –20%. Despite intermittent declines, the general trajectory is upward. A label near the center of the chart indicates a +79% increase from 10/12/2022 to 12/31/2025. The horizontal axis shows dates from late 2022 through the end of 2025. The vertical axis shows index price levels ranging from 300 to 700. A small note at the bottom cites the data source: FactSet, with values based on the FTSE All World Price Index, daily.	Of course, growth never happens in a straight line. As you can see in this chart, there were multiple pullbacks and a few corrections.
Title: The Current Bull Market A line chart displays the FTSE All World Index Price from October 2022 through December 2025. The overall trend moves upward from roughly 360 to just above 680, showing strong growth over the period. The main price line is dark blue, with two additional highlight colors: • Yellow segments mark 12 market pullbacks, defined as drops between –2% and –10%. • Red segments mark 2 market corrections, defined as drops between –10% and –20%. Despite intermittent declines, the general trajectory is upward. A label near the center of the chart indicates a +79% increase from 10/12/2022 to 12/31/2025. The horizontal axis shows dates from late 2022 through the end of 2025. The vertical axis shows index price levels ranging from 300 to 700. A small note at the bottom cites the data source: FactSet, with values based on the FTSE All World Price Index, daily.	Some volatility is a normal part of long-term investing, but economic conditions and policy decisions have also played a role.
A white slide with centered dark‑blue text that reads, “Let’s start with inflation.” A short diagonal orange line appears to the left of the text as a decorative brand element.	Let’s start with inflation.
Title: Inflation Stabilizing as Fed Turns Attention to Labor Market A combination chart shows U.S. inflation, unemployment, and the Federal Funds Rate from January 2020 through early 2026. The vertical axis measures the inflation rate year over year from 0% to 15%. The horizontal axis shows time from Jan 2020 to Jan 2026. • Gray vertical bars represent the unemployment rate. Bars are high in early 2020, above 13%, and gradually decline over the years to around 3.7% by late 2025. • A light red dashed horizontal line marks the Federal Reserve’s target inflation rate, set at 2%. • A peach-colored line tracks the actual inflation rate, which is low in 2020, spikes to around 9% in mid 2022, then steadily falls and stabilizes near 2.7% by late 2025. • A dark blue line shows the Federal Funds Rate, which remains near zero through early 2022, then climbs sharply through 2023 before leveling out around 4–5% from mid 2023 through late 2025. A callout box marks September 2024, labeled “Start of the current rate cutting cycle,” pointing to the slight downward shift in the Fed Funds Rate. In the bottom legend, colors correspond to each metric: unemployment rate (gray bars), target inflation (dashed red), inflation rate (peach line), and Fed Funds Rate (dark blue). The data source is the U.S. Bureau of Labor Statistics.	This chart shows that while inflation remains above the Fed’s target of 2%, we saw it stabilize and remain consistently below 3% in 2025.
Title: Inflation Stabilizing as Fed Turns Attention to Labor Market A combination chart shows U.S. inflation, unemployment, and the Federal Funds Rate from January 2020 through early 2026. The vertical axis measures the inflation rate year over year from 0% to 15%. The horizontal axis shows time from Jan 2020 to Jan 2026. • Gray vertical bars represent the unemployment rate. Bars are high in early 2020, above 13%, and gradually decline over the years to around 3.7% by late 2025. • A light red dashed horizontal line marks the Federal Reserve’s target inflation rate, set at 2%. • A peach-colored line tracks the actual inflation rate, which is low in 2020, spikes to around 9% in mid 2022, then steadily falls and stabilizes near 2.7% by late 2025. • A dark blue line shows the Federal Funds Rate, which remains near zero through early 2022, then climbs sharply through 2023 before leveling out around 4–5% from mid 2023 through late 2025. A callout box marks September 2024, labeled “Start of the current rate cutting cycle,” pointing to the slight downward shift in the Fed Funds Rate. In the bottom legend, colors correspond to each metric: unemployment rate (gray bars), target inflation (dashed red), inflation rate (peach line), and Fed Funds Rate (dark blue). The data source is the U.S. Bureau of Labor Statistics.	Meanwhile, unemployment has inched higher, prompting the Fed to place greater emphasis on supporting the labor market as it adjusts interest rates.
A white slide with centered dark‑blue text that reads, “The U.S. dollar weakened during the first half of 2025.” A short diagonal orange line appears to the left of the text as a decorative brand element.	Beyond inflation and employment, another important story last year was the movement of the U.S. dollar.
Title: U.S. Dollar Softness Fueled International Market Gains A line chart shows the total return performance of three financial indicators from December 2024 through December 2025. The vertical axis measures total return percentage from –20% to +30%. The horizontal axis displays months from Dec 2024 through Dec 2025. Three colored lines represent different data series: • Red line: United States Dollar Index. It trends slightly downward at the beginning of 2025, falling more sharply between March and April, reaching around –12% before stabilizing near –10% for the remainder of the year. A text label on the chart notes: “The US Dollar depreciated in the 1st half of 2025.” • Yellow line: S&P 500. It shows mild fluctuations early in the year, briefly dipping near –10% in April. Afterward, it rises steadily through the second half of 2025, ending near +15%. • Blue line: FTSE All World Developed ex US. This line sharply rises after April 2025, climbing from near –10% to around +30% by year end, showing the strongest performance of the three. The chart illustrates how a weakening U.S. dollar coincided with strong gains in international developed markets. A legend at the bottom identifies the colors for each series, and a data source note cites FactSet.	The U.S. dollar weakened during the first half of 2025. As the chart shows, that decline didn’t hurt U.S. stocks — they still delivered positive returns.
Title: U.S. Dollar Softness Fueled International Market Gains A line chart shows the total return performance of three financial indicators from December 2024 through December 2025. The vertical axis measures total return percentage from –20% to +30%. The horizontal axis displays months from Dec 2024 through Dec 2025. Three colored lines represent different data series: • Red line: United States Dollar Index. It trends slightly downward at the beginning of 2025, falling more sharply between March and April, reaching around –12% before stabilizing near –10% for the remainder of the year. A text label on the chart notes: “The US Dollar depreciated in the 1st half of 2025.” • Yellow line: S&P 500. It shows mild fluctuations early in the year, briefly dipping near –10% in April. Afterward, it rises steadily through the second half of 2025, ending near +15%. • Blue line: FTSE All World Developed ex US. This line sharply rises after April 2025, climbing from near –10% to around +30% by year end, showing the strongest performance of the three. The chart illustrates how a weakening U.S. dollar coincided with strong gains in international developed markets. A legend at the bottom identifies the colors for each series, and a data source note cites FactSet.	Meanwhile, the softer dollar gave international markets a tailwind, boosting their returns relative to U.S. stocks and giving them an advantage.
A white slide with centered dark‑blue text that reads, “Magnificent 7 Earnings Outpace Broader Market.” A short diagonal orange line appears to the left of the text as a decorative brand element.	And as currency movements shaped global results, another theme emerged closer to home—the widening gap between the so‑called “Magnificent 7” and the rest of the S&P 500.
Title: Magnificent 7 Performance & Dispersion A table presents annual price returns for the S&P 500, the S&P 493 (the S&P 500 excluding the Magnificent 7), and the Magnificent 7 from 2021 through 2025. Each column represents a year, and each row shows the return for one index or group. Table contents: • S&P 500: o 2021: 27% o 2022: –19% o 2023: 24% o 2024: 23% o 2025: 16% • S&P 493: o 2021: 23% o 2022: –12% o 2023: 11% o 2024: 14% o 2025: 13% • Magnificent 7: o 2021: 40% o 2022: –40% o 2023: 76% o 2024: 48% o 2025: 23% A final row labeled Return Share* shows the proportion of the S&P 500’s total return attributable to the Magnificent 7: • 2021: 33% • 2022: 56% • 2023: 63% • 2024: 55% • 2025: 46% A note at the bottom reads: “Indexed to 100 on 1/15/2021, price return.	This chart highlights that gap by isolating the “Magnificent 7” from the other 493 stocks in the S&P 500.
Title: Magnificent 7 Performance & Dispersion A table presents annual price returns for the S&P 500, the S&P 493 (the S&P 500 excluding the Magnificent 7), and the Magnificent 7 from 2021 through 2025. Each column represents a year, and each row shows the return for one index or group. Table contents: • S&P 500: o 2021: 27% o 2022: –19% o 2023: 24% o 2024: 23% o 2025: 16% • S&P 493: o 2021: 23% o 2022: –12% o 2023: 11% o 2024: 14% o 2025: 13% • Magnificent 7: o 2021: 40% o 2022: –40% o 2023: 76% o 2024: 48% o 2025: 23% A final row labeled Return Share* shows the proportion of the S&P 500’s total return attributable to the Magnificent 7: • 2021: 33% • 2022: 56% • 2023: 63% • 2024: 55% • 2025: 46% A note at the bottom reads: “Indexed to 100 on 1/15/2021, price return.	From 2023 to 2025, these seven companies posted strong gains—some years well above 30%—while the rest of the index trailed.
Title: Magnificent 7 Performance & Dispersion A line chart compares the performance of three equity groups from 2021 through early 2026: the S&P 500 Index, the S&P 493 (the S&P 500 excluding the Magnificent 7), and the Magnificent 7 stocks. All three series begin at the same starting value, indexed to 1000 as of December 31, 2020. Three colored lines represent each group: • Blue line: S&P 500, showing steady upward movement with some short term fluctuations. • Orange line: S&P 493, rising gradually over the time period, with more muted gains compared to the full index. • Green line: Magnificent 7, showing the strongest and most volatile performance, trending much higher than the other two groups—especially from 2023 onward. The chart highlights how the Magnificent 7 significantly outperformed the broader market, creating a widening dispersion between the group and the rest of the S&P 500. A small inset table in the upper-left corner shows annual price returns for 2020–2024: • The S&P 500 and S&P 493 each have varied returns across the years. • The Magnificent 7 list much higher returns, particularly in 2023 and 2024. • A final row labeled “Percent Share” shows that the Magnificent 7 represented 29% of the S&P 500 in 2020 and grew to 48% by 2024. The chart background is white with a simple gray horizontal axis marking each calendar year. A legend at the bottom matches each color to its respective index.	While it may be tempting to chase these market leaders, doing so can introduce unnecessary risk for many retirement savers.
Title: Magnificent 7 Performance & Dispersion A line chart compares the performance of three equity groups from 2021 through early 2026: the S&P 500 Index, the S&P 493 (the S&P 500 excluding the Magnificent 7), and the Magnificent 7 stocks. All three series begin at the same starting value, indexed to 1000 as of December 31, 2020. Three colored lines represent each group: • Blue line: S&P 500, showing steady upward movement with some short term fluctuations. • Orange line: S&P 493, rising gradually over the time period, with more muted gains compared to the full index. • Green line: Magnificent 7, showing the strongest and most volatile performance, trending much higher than the other two groups—especially from 2023 onward. The chart highlights how the Magnificent 7 significantly outperformed the broader market, creating a widening dispersion between the group and the rest of the S&P 500. A small inset table in the upper-left corner shows annual price returns for 2020–2024: • The S&P 500 and S&P 493 each have varied returns across the years. • The Magnificent 7 list much higher returns, particularly in 2023 and 2024. • A final row labeled “Percent Share” shows that the Magnificent 7 represented 29% of the S&P 500 in 2020 and grew to 48% by 2024. The chart background is white with a simple gray horizontal axis marking each calendar year. A legend at the bottom matches each color to its respective index.	Instead, staying broadly diversified helps keep you on track for long‑term growth, since market leadership can shift unpredictably over time.
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