Press release
Northern Trust Universe Data: Rate Cuts, AI Momentum and Tariff Stabilization Fuel Third Quarter Market Gains
CHICAGO--(BUSINESS WIRE)-- Global markets delivered positive results for U.S. institutional investors in the third quarter of 2025, supported by a Federal
About this update from Northern Trust Corporation
[{"type":"text","content":" CHICAGO--(BUSINESS WIRE)--\nGlobal markets delivered positive results for U.S. institutional investors in the third quarter of 2025, supported by a Federal Reserve interest rate cut, developments in artificial intelligence (AI) and stabilization of tariff negotiations. The Northern Trust All Funds Over $100 Million plan universe had a median return of 4.3% for the quarter.\n\n\nThe Northern Trust Universe tracks the performance of 363 large U.S. institutional investment plans, with a combined asset value of more than $1.4 trillion, which subscribe to performance measurement services as part of Northern Trust's asset servicing offerings.\n\n\nPerformance varied across plan types, with the Northern Trust Corporate (ERISA) universe returning 3.7% at the median for the quarter while the Northern Trust Public Funds universe median return was 4.0% and the Northern Trust Foundation and Endowment (F&E) universe produced a 4.3% median return.\n\n\nU.S. equity markets delivered notable returns during the third quarter, with the S&P 500 gaining 8.1% for the quarter, up 35% since its April low. AI-driven momentum boosted sectors like semiconductors and electric utilities in the U.S. The Northern Trust US Equity program universe posted a 7.2% median return, while The Northern Trust Non-US Equity program universe had a median return of 6.1% in the quarter.\n\n\nJohn Turney, global head of Total Portfolio Solutions at Northern Trust Asset Servicing, said: “Strong third quarter results reflect the continued adaptability of institutional investors. With monetary policy shifting and AI innovation accelerating, our clients are navigating market complexity with confidence and precision.”\n\n\nFixed income markets benefited from the Fed’s 25 basis point rate cut in September, which lowered treasury yields and narrowed credit spreads, boosting bond prices. Inflation remained moderate, with the Consumer Price Index rising just 0.4% in August and 2.9% year-over-year. The European Central Bank maintained its interest rate at 2% and continued policies aimed at supporting 2% economic growth. The Northern Trust US Fixed Income program universe returned 2.4%.\n\n\nThe ERISA plan one, three, and five-year median returns were 5.1%, 9.1%, and 4.1%, respectively. In the Northern Trust ERISA plan universe, the median allocation to U.S. fixed income was 55%, sup...