Investment Review - September 2025
- The major U.S. stock indices increased in value in August. The Dow Jones Industrial Average was up 3.2%, the S&P 500 rose by 1.9%, and the Nasdaq Composite advanced by 1.6%.
- The U.S. Dollar Index continued this year’s decline, decreasing by 2.2% in August. This index measures the value of the U.S. dollar versus six major foreign currencies. A weaker dollar increases the cost of imports, decreases the price of exports to foreign purchasers, and increases the value of overseas revenues and profits earned by U.S. corporations with international operations.
- For 2025, analysts expect S&P 500 companies to grow earnings by 11.3%, revenues by 5.9%, and cash flow by 11.5%. Consensus expectations for 2026 call for continued S&P 500 growth as follows: earnings by 13.4%, revenues by 6.3%, and cash flow by 16.8%. Mid- and long-term stock performance correlates well with earnings, revenue, cash flow, and expected growth. If the economy changes direction, 2026 expectations are likely to be revised.
Key Investment Statistics
Sources: FactSet, Yardeni Research, U.S. Bureau of Economic Analysis, The Federal Reserve, U.S. Bureau of Labor Statistics, The Wall Street Journal
Disclosure: This commentary reflects the opinions of Welch & Forbes based on information that we believe to be reliable. It is intended for informational purposes only, and not to suggest any specific performance or results, nor should it be considered investment, financial, tax or other professional advice. It is not an offer or solicitation.
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