C1W - Market Commentary: 3nd Qtr 2026

• Domestic Equities: U.S. equities advanced in Q3, but leadership narrowed beneath the surface as large-cap indexes outperformed smaller and equal-weight exposures; earnings growth and AI-related investment remained supportive, while higher rates and shifting factor leadership reinforced the importance of selectivity and diversification.

• Fixed Income: Rising yields and the Fed’s September rate hike pressured bonds in Q3, particularly longer-duration sectors, but today’s higher starting yields and resilient credit fundamentals leave fixed income on a stronger footing than during the 2022 tightening cycle.

• International Equities: Performance remained highly differentiated across regions, with Japan and select emerging Asian markets supported by improving fundamentals and AI-related investment, Latin America benefiting from financials and commodity-linked exposure, and Europe and China facing more mixed growth and policy backdrops; the quarter reinforced the value of diversification across distinct country, sector, and currency exposures.