Reso 2025-166 OPEB & Investments Report

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QUARTERLY MARKET SUMMARY For the Quarter Ended September 30, 2025 Multi-Asset Class Management DOMESTIC EQUITY • The S&P 500 Index (S&P) posted an 8.1% return in the third quarter (of 2025). The Index has hit 23 new all-time closing highs and the year-to-date (YTD) return stands at 14.8%. • Within the S&P, the performance varied greatly across sectors, with 10 of the 11 seeing positive returns. The best performing sectors were Information Technology (13.2%), Communication Services (12.0%), and Consumer Discretionary (9.5%). Real Estate saw a relatively weak return (2.6%) while only Consumer Staples saw a negative return (-2.4%). • Positive returns were seen across all capitalizations with large caps, as represented by the Russell 1000 Index, returning 8.0% during the quarter while mid and small caps, as represented by the Russell Midcap and Russell 2000 indices returned 5.3% and 12.4% respectively. Small caps outperformed large caps over the quarter, and the Russell 2000 ended the quarter at an all- time high. • According to FactSet Earnings Insight as of September 26, 2025, analysts are projecting earnings growth of 7.9% in Q3 2025, up from a prior estimate of 7.3% at the start of the quarter. This unusual upward revision (over the past 10 years estimates fell an average of 3.2% during the quarter) was led by the Information Technology sector as companies benefiting from artificial intelligence (AI) continued to have an outsized impact on the market. For calendar year 2025, analysts are projecting YoY earnings growth of 10.9%. If the projected earnings growth in Q3 is correct and comes to fruition, this will mark the ninth consecutive quarter of earnings growth for the index. • At quarter end, the forward 12-month adjusted positive price-to-earnings (P/E) ratio (including only positive earnings results for consistency) for the S&P 500 is 27.4, which is above the 5-year average of 23.3. The Russell 2000 Index, which represents small cap stocks, had an adjusted positive forward P/E ratio of 21.2, also above its 5-year average of 17.7. Source: Bloomberg. S&P 500 Index Performance by Sector Periods Ended September 30, 2025 Source: Bloomberg. *P/E ratios are calculated based on one-year forward estimates and adjusted to include only posi- tive earnings results for consistency. P/E Ratios of Major Stock Indices* Consumer Disc. Consumer Staples Energy Financials H'lthcare Industrials Info. Tech Materials Real Estate Telecom Utilities QTD 9.54%-2.36%6.21% 3.22% 3.76% 4.91%13.19%3.10% 2.59%12.04%7.57% YTD 5.30% 3.89% 7.04%12.70%2.61%18.25% 22.31%9.32% 6.19%24.51% 17.69% 1 Year 20.31%0.51% 4.43%20.66% -7.95% 15.40% 28.22% -4.27% -2.24% 35.55% 11.20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 10 15 20 25 30 35 Oct-20 Oct-21 Oct-22 Oct-23 Oct-24 S&P 500 S&P 500 5-Year Average Russell 2000 Russell 2000 5-Year Average 2.4 Exhibit A Resolution No. 2025-166 Page 7