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Capital Markets Update

Explore the current economic themes that are driving global financial markets in this market outlook from the FI Capital Markets Strategy Group.

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Created with advisors and wealth managers in mind, the Capital Markets Update brings together the views of research teams and asset class specialists from across Fidelity. Produced by the Capital Markets Strategy Group at Fidelity Institutional, this investing outlook is supported by market data and in-depth economic analysis.

You can browse a selection of our insights below. Investment professionals can log in to view the full report, including actionable outlooks and key themes for a range of traditional and alternative asset classes.

Q4 2025 market outlook and positioning

A brief summary of insights from the full report

Consumer spending, AI investment, corporate earnings, and easier financial conditions support continued economic expansion.

Key Takeaways
  • The economy has shown signs of reacceleration, even as labor growth decelerates, and inflation remains sticky.
  • The Fed has re-embarked on its easing cycle, and is focused on a "balance of risks" approach between labor and inflation.
  • Uncertainty of tariff policy remains, although fiscal (tax) stimulus and monetary easing have been a positive offset.
  • Bond yields offer investors a competitive risk-adjusted return.
  • Equity valuations remain similar to one year ago while earnings growth has accelerated.

Investing ideas

  • Intermediate duration bonds
  • Balanced domestic equities
  • International diversification

Commentary
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More insights from the FI Capital Markets and Asset Class Specialist teams

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Commentary and investing ideas to help you enhance portfolios and talk to clients about market opportunities.
Commentary
Government shutdowns and investors
History suggests little impact on markets and the economy.
Investing Ideas
Investing in an era of persistent inflation
The implications for asset prices may depend on whether we see good or bad inflation.
Investing Ideas
What leveraged loans can do for your portfolio
How the high starting yields of loans could add value even if rates continue to move lower.

Meet the FI Capital Markets and Asset Class Specialist teams

The FI Capital Markets Strategy Group synthesizes economic analysis and market outlooks from across Fidelity to provide timely, actionable perspectives for financial advisors and institutional investors. Our Asset Class Specialist team offers in-depth analysis and positioning views focused on equity, fixed income, and alternative investments, including a range of ETF offerings.

Brad Pineault
Vice President, Head of Capital Market Strategists
Michael Scarsciotti
SVP, Head of Investment Specialists
Anu Gaggar
Vice President, Capital Markets Strategy
Bryan Sajjadi
VP, Global Equity Strategist
Mehernosh Engineer
Vice President, Capital Markets Strategy
Seth Marks
VP, Global Equity Strategist
David Delleo
Vice President, Investment Insights
Vino Ravichandran
Quantitative Analyst
Provides current themes and views of the Capital Markets Specialist Group within Fidelity Institutional, as of 4/30/25. Individual views or outlooks may differ. Views are not intended to be substitutes for strategic asset allocation and reflect market views based on current economic conditions. Diversification does not ensure a profit or guarantee against a loss. The statements and opinions are subject to change at any time, based on market and other conditions.
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