Weekly Market Commentary - September 22, 2025 

Week In Review

The FOMC interest rate decision was the key driver of market sentiment. As was widely expected, the

Fed delivered a 25-basis-point cut to the federal funds rate, the first interest rate reduction since December 2024. More importantly, the updated Summary of Economic Projections suggested the potential for further monetary policy easing later this year. The yield curve steepened on the news and several U.S. equity indices advanced to record highs, with the S&P 500 ascending +1.2% to 6,664.

This Week

The financial markets have a robust economic calendar of key indicators and multiple Fed governor

speeches that may sway investor sentiment. The updates include the S&P flash U.S. services and manufacturing PMI, the final revision to second quarter GDP, initial jobless claims, durable goods orders, and the pivotal PCE Price Index for the month of August.3 Since the balance of risk has seemingly shifted to a slowing labor market, unexpected economic strength could be a justification for fewer rate cuts.

Portfolio Theme

Last week, we discussed how municipal bonds provide an opportunity to lock in compelling current

yields and lower the risk of holding too much cash in non-qualified accounts. Investors looking for income generation in qualified accounts might consider an allocation to securitized credit. This is a fixed income asset class created by pooling generally illiquid loans such as residential mortgages, commercial mortgages, auto loans and other bank-originated debt into special purpose vehicles and then issuing tradable bonds that offer varying levels of risk and potential return. Investment grade, senior tranches appeal to risk-averse investors since those securities have priority claim on the underlying asset’s cash flows. Simplicity offers diversified income portfolios constructed with allocations to securitized credit that may provide enhanced yield-to-worst returns.

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Data: Unless otherwise noted, data for charts, graphs, and tables is sourced from YCharts. Portfolio Themes chart sourced from Nuveen.

1 Style box returns use various Russell indices tied to specific areas of the market cap (vertical) and style (horizontal) spectrums. Indices are not typically available for direct investment, are unmanaged, and do not incur fees or expenses.

2 Index Statistics: P/E Ratio – Displays the forecasted P/E ratio of the representative index ETF. Yield - Dividend-per-share divided by current share price. Table statistics are updated weekly. MSCI indices represent broad global and international equity markets. Indices are represented by iShares ETF proxies (IVW, IVV, IVE, ACWI, and ACWX).

3 MarketWatch.

Past performance does not guarantee future results. Weekly commentary and investment advisory services are provided by Simplicity Wealth, LLC a SEC Registered Investment Adviser. Registration does not imply a certain level of skill or training. The information provided is for informational purposes only and does not constitute any form of advice or recommendation. The information contained within has been obtained from various sources and is believed to be accurate at the time of publication.