Markets experienced a higher level of volatility in 2025, which has been the norm since 2020. Overall trends continued but were punctuated by brief spikes in reaction to specific events. Inflation data rose slightly in the second half of the year but did not increase to the level that some were concerned it may do. Short-term interest rates declined as the Fed lowered its target for the Fed Funds rate, but longer-term rates stayed relatively unchanged. Equity markets ended the year with an increase in the S&P 500 index, despite a significant decline in the spring. Credit spreads continued to tighten, notwithstanding a significant spike in the spring.