LSE:UTG 14 August 2025 - 10 April 2026

Global markets surged in mid-August as investors bet on imminent central bank easing. In the U.S., the S&P 500 and Nasdaq hit new record closing highs on August 13, buoyed by growing confidence that the Federal Reserve was nearing a rate-cut cycle reuters.com. The Dow Jones Industrial Average jumped 1.04% that day reuters.com. Traders fully priced in a 25 basis-point Fed rate cut by the September meeting – the first cut since December – after data showed tame inflation despite tariff pressures reuters.com. “Valuations are elevated… at the end of the day, the key will be the delivery of earnings,” noted Katherine Bordlemay of Goldman Sachs Asset Management, pointing out that market gains have been driven by a few mega-cap stocks reuters.com. Indeed, breadth improved as beaten-down sectors like small-caps and healthcare outperformed, with the Russell 2000 up ~2% to a six-month high reuters.com.