WEEKLY MARKET SUMMARY
Global Equities: US equity markets were down most of the week, until the big rally on Friday that led to a weekly gain of 0.3% for the S&P 500 index. The Nasdaq Composite was down slightly for the week with a -0.6% decline, but the Dow Jones Industrial Average hit a record closing high on Friday and ended the week with a 1.8% gain. Small Caps had another strong week, gaining 3.3% during the weekly session after a big move on Friday. Foreign Developed stocks were also positive during the week, gaining 1.1%, and Emerging Market stocks gained 1.4%.
Fixed Income: US Treasury yields fell after Powell’s Jackson Hole statement. The 10-Year yield ended the week at 4.26%, while the yield on the 30-Year Treasury Bond fell slightly, down to 4.91%. Investment grade and high yield corporate bonds were positive for the week, gaining 0.4% and 0.5%, respectively.
Commodities: US West Texas Intermediate crude oil ended the week slightly higher at $63.82 a barrel. Gold prices had a big jump on Friday to get back above $3,400 an oz.
WEEKLY ECONOMIC SUMMARY
Jackson Hole Symposium: The Federal Reserve’s annual Economic Symposium kicked off on Thursday, with Chairman Powell’s much-awaited speech occurring Friday morning. Powell hinted at a September rate cut but included a note of caution as they see a risk of stagflation ahead and worry markets may be overly optimistic. Investors celebrated the address, as markets rallied sharply on Friday with Small Caps up almost 4%. Odds of a September rate cut increased from about 75% to close to 90% following Powell’s speech. The address was Powell’s final at Jackson Hole as the Fed chair.
Earnings Update: Several large retailers, including Walmart (WMT), Target (TGT), and Home Depot (HD) reported last week. WMT reported an earnings miss and the stock dropped 4%. TGT was down big after announcing that their CEO is stepping down on February 1stas well as affirming guidance that forecasts an annual sales decline. HD shares were up 4% after reaffirming their full-year outlook.
CHART OF THE WEEK
The Chart of the Week shows the performance for each of the 11 S&P sectors for the past week. While Technology and Communication Services have led the way in 2025, this past week saw outperformance come from the defensive sectors. The broadening out of market breadth thus far in August has been a positive sign for stocks as tech-oriented growth stocks had been driving the market.
