US Equity Markets Reach Record Highs in Q3 2025
New York, Wednesday, 15 October 2025.
SIFMA’s report reveals record highs in US equity markets for Q3 2025, with the S&P 500 showing a remarkable 16% annual increase, indicating strong investor confidence and potential economic growth.
Market Performance and Investor Sentiments
The Securities Industry and Financial Markets Association (SIFMA) recently published its Research Quarterly report highlighting unprecedented growth in US equity markets during the third quarter of 2025. The S&P 500 index averaged a record 6,427.74 points, reflecting a 12.1% increase compared to the previous quarter and a 16.0% rise year-over-year. This significant uptick underscores strong investor confidence and suggests a positive outlook for economic expansion [1].
Broader Market Trends
Alongside the S&P 500, other major indices such as the Nasdaq and Dow Jones also experienced notable growth. The Nasdaq surged to an average of 21,441.93, marking a 17.1% quarterly increase and a 21.8% year-over-year rise. Meanwhile, the Dow Jones climbed to 45,048.85, with quarterly and annual increases of 8.6% and 11.0%, respectively. The Russell 2000 similarly rose to 2,310.60, posting a 14.0% quarterly and 7.2% yearly increase [1].
Volatility and Trading Volumes
The quarter was characterized by reduced market volatility, as evidenced by the VIX index averaging 15.98, a substantial 32.2% decrease from the previous quarter and a 6.4% decline year-over-year. Despite this, trading volumes in equities and ETFs saw a decline from the prior quarter’s highs. Equity average daily volume (ADV) fell by 4.4% to 17.6 billion shares, while ETF ADV decreased by 9.0% to 3.4 billion shares. However, options trading reached new heights, with a 6.3% quarterly increase in ADV to 60.8 million contracts [1].
Capital Formation and Economic Implications
The total equity capital formation for the quarter amounted to $63.2 billion, reflecting an 11.2% increase quarter-over-quarter and a 10.4% rise year-over-year. Notably, initial public offerings (IPOs) reached $16.4 billion, marking a staggering 104.1% increase from the previous quarter and a 92.0% rise year-over-year, representing the largest quarterly issuance since the first quarter of 2022. The equity market’s capitalization concluded the quarter at $67.7 trillion, up 7.9% quarter-over-quarter and 15.9% year-over-year, indicating substantial investment activity and economic vigor [1].