In September 2025, the US equity market reflects fair value estimates, with small-cap and value stocks outperforming. The Fed is expected to cut rates, and long-term yields are trending lower. Tariffs impact GDP, signaling an economic slowdown. Communications, real estate, energy, and healthcare sectors offer the best value.

Federal Reserve Chair Jerome Powell’s Jackson Hole speech hints at a September rate cut. The US and EU agreed on tariffs, boosting stocks. Communications and real estate sectors offer value, with Alphabet’s antitrust case resolved. Real estate benefits from lower rates. Energy stocks show value, with potential for oil price rebound. Healthcare sector rebounds in August.

Utility sector declines due to lower yields, signaling overvaluation. Small-cap stocks offer value, while utilities are overvalued. The Morning Filter Weekly Podcast covers market insights and stock picks every Monday. Tune in on YouTube, Apple Podcasts, or Spotify for the latest updates and recommendations.

Read more at Morningstar: Will the Small-Cap Rally Last?