Weekly Market Insights

Stocks were mixed last week despite a powerful Friday rally sparked by Federal Reserve Chair Jerome Powell, who opened the door to adjusting short-term interest rates.

The Standard & Poor’s 500 Index picked up 0.27 percent while the Nasdaq Composite Index lost 0.58 percent. The Dow Jones Industrial Average rose 1.53 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, increased 0.80 percent.^1,2

All Eyes on Powell

Stocks traded in a narrow band to start the week as investors awaited fresh economic data and comments from Fed officials at their annual symposium in Jackson Hole, Wyoming.

After a big retailer reported quarterly results on Tuesday and gave encouraging guidance, stocks pushed higher. But markets took a breather later in the day as pressure on megacap tech and chipmakers led the Nasdaq and the broader market lower.³

The S&P 500 and Nasdaq fell after minutes from the Federal Reserve’s July meeting were published; they revealed that most Federal Open Market Committee (FOMC) members were more concerned about inflation than the job market.⁴

On Friday, markets rebounded after Fed Chair Powell opened the door to a rate move at the Fed’s September meeting. The day’s gain was strong enough to regain the week’s lost ground for the S&P and nearly all of it for the Nasdaq—and put the Dow solidly ahead for the week.⁵

Watch the Rotation

Investors appeared to rotate out of megacap tech as some expressed concern about valuations and the durability of the AI-driven rally. Two facts helped support this observation: the S&P fared better than the tech-heavy Nasdaq for the week, and the Russell 2000 Index of small-cap stocks (+3.25 percent) beat all three major stock averages.⁶

The Federal Reserve also rotated a bit. In contrast to the Fed’s July meeting—where inflation was the bigger concern for most Committee members—Fed Chair Powell’s Friday morning speech at Jackson Hole revealed the FOMC was now more concerned with the jobs market.⁷

Footnotes and Sources

1. ^{WSJ.com, August 22, 2025}
2. ^{Investing.com, August 22, 2025}    
3. ^{CNBC.com, August 19, 2025}
4. ^{CNBC.com, August 20, 2025}
5. ^{MarketWatch.com, August 22, 2025}
6. ^{WSJ.com, August 22, 2025}
7. ^{WSJ.com, August 22, 2025}

Stocks rose last week despite mixed signals on inflation as investors kept one eye on the Fed’s September meeting.

The Standard & Poor’s 500 Index advanced 0.94 percent, while the Nasdaq Composite Index added 0.81 percent. The Dow Jones Industrial Average rose 1.74 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, increased 2.16 percent.^1,2

Third Gain in Four Weeks

Stocks posted modest losses to start the week as investors braced for July consumer inflation reports. The White House’s executive order on Monday extending the tariff deadline for China by 90 days failed to move markets in the other direction.³

Stocks then staged a two-day rally following the latest Consumer Price Index (CPI) report, which showed July inflation held steady over the prior month—beating expectations. The inflation news led some investors to move into small-cap stocks, with the Russell 2000 Index of small-cap stocks rising 5 percent over Tuesday and Wednesday.⁴

However, markets slipped Thursday as investors dug into the Producer Price Index (PPI) for July, which showed wholesale inflation hit a 3-year high last month; this was the third weekly gain in the past four weeks for each of the three major averages; the S&P and Nasdaq advanced four of the last five weeks.^5,6,7

A Mixed Inflation Story

Inflation continues to give mixed signals, which can unsettle investors who anticipate the Fed adjusting rates at its September meeting.

Last week’s CPI report showed that “headline” (retail) inflation held steady. Stocks rose in response, even though core inflation—excluding volatile food and energy prices—was hotter than economists expected.

Two days later, the PPI report revealed that inflation began to creep into wholesale prices in July. Stocks fell in response as investors processed the conflicting reports.^8,9

Footnotes and Sources

1. ^{WSJ.com, August 8, 2025}
2. ^{Investing.com, August 8, 2025}  
3. ^{MarketWatch.com, August 4, 2025}
4. ^{CNBC.com, August 5, 2025}
5. ^{CNBC.com, August 6, 2025}
6. ^{WSJ.com, August 7, 2025}
7. ^{WSJ.com, August 8, 2025}
8. ^{WSJ.com, August 5, 2025}
9. ^{Advantage.FactSet.com, August 1, 2025}

Stocks rebounded last week as investor optimism for a September rate adjustment and strong Q2 corporate results overcame the rollout of fresh tariffs.

The Standard & Poor’s 500 Index rose 2.43 percent, while the Nasdaq Composite Index gained 3.87 percent. The Dow Jones Industrial Average added 1.35 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, increased 2.77 percent.^1,2

Stocks Gyrate

Stocks pushed higher to start the week, with major averages gaining between 1.3 percent and 2 percent—their best day since May. Investors seemed more optimistic for a rate move after the weaker-than-expected July jobs report.^3,4

Stocks rose again midweek after the White House confirmed a mega-cap tech company would invest $500 billion more in domestic manufacturing. News of additional tariffs on India was greeted with a muted reaction from investors.⁵

The updated tariffs previously announced by the White House went into effect on Thursday. Markets initially rose in early trading but then came under pressure as the day continued.⁶

But the S&P and Dow rose again on Friday, ending the week with solid gains. The tech-heavy Nasdaq ended the week with a record close.⁷

Economy Watch

Services comprise 70 percent of the economy, so Wall Street closely monitors the Institute for Supply Management’s Services Index.

So, news on Tuesday that growth in services came below economists’ expectations was a bit of a concern. However, investors seemed to quickly look past the number and focus more on the 122 S&P 500 companies that reported earnings last week.^8,9

Footnotes and Sources

1. ^{WSJ.com, August 8, 2025}
2. ^{Investing.com, August 8, 2025}  
3. ^{MarketWatch.com, August 4, 2025}
4. ^{CNBC.com, August 5, 2025}
5. ^{CNBC.com, August 6, 2025}
6. ^{WSJ.com, August 7, 2025}
7. ^{WSJ.com, August 8, 2025}
8. ^{WSJ.com, August 5, 2025}
9. ^{Advantage.FactSet.com, August 1, 2025}

Stocks fell last week as investors assessed progress on trade negotiations, new U.S. tariffs, and fresh data on the U.S. economy.

The Standard & Poor’s 500 Index fell 2.36 percent, while the Nasdaq Composite Index declined 2.17 percent. The Dow Jones Industrial Average dropped 2.92 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, lost 2.95 percent.^1,2

Action-Packed Week

Stocks largely went sideways over the first half of the week as investors waited for more Q2 corporate results, fresh economic data, and the Fed decision.

The U.S.-E.U. trade agreement announced over the weekend had a muted impact on the market as the week began. Stocks then retreated as China trade talks appeared to stall, with the Dow declining the most of the three major averages through midweek.^3,4

Stocks gained on Wednesday morning after the latest gross domestic product (GDP) report showed consumer spending powered the economy back to 3 percent annualized growth in Q2. That afternoon, the Federal Reserve announced they were holding rates steady, which put some pressure on stocks.⁵

Selling pressure continued on July’s final trading day as investors continued to fret about the Fed’s next move. The Personal Consumption and Expenditures (PCE) Index—the Fed’s favored inflation metric—showed a June uptick in core goods prices, unsettling investors.⁵

Stocks were under pressure from the opening bell on Friday as investors sorted through fresh tariff announcements from the White House, a softer-than-expected July jobs report, and mixed Q2 corporate reports from two megacap tech names.^6,7

Mixed Economic Signals

There was a trove of economic data for investors to parse last week.

First, there was economic growth. While 3 percent GDP growth in Q2 is a solid step up from a 0.5 percent contraction in Q1, consumer spending largely drove the increase, offset by slower business spending—especially investment in equipment and buildings.⁸

The PCE report showed why the Fed remains focused on inflation. Finally, Friday’s jobs report pointed to a slowdown in hiring in July. A bit more concerning was that the jobs data from prior months were revised lower.

The Fed has no meeting in August, with three other meetings scheduled for 2025.

Footnotes and Sources

1. ^{WSJ.com, August 1, 2025}
2. ^{Investing.com, August 1, 2025}
3. ^{CNBC.com, July 28, 2025}
4. ^{CNBC.com, July 29, 2025}
5. ^{WSJ.com, July 31, 2025}
6. ^{MarketWatch.com, August 1, 2025}
7. ^{WSJ.com, August 1, 2025}
8. ^{WSJ.com, July 30, 2025}

Expectation-beating Q2 results from several companies, trade updates, and investor optimism for more trade agreements pushed market averages to solid gains.

The Standard & Poor’s 500 Index advanced 1.46 percent, while the Nasdaq Composite Index added 1.02 percent. The Dow Jones Industrial Average rose 1.26 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, gained 2.16 percent.^1,2

Earnings, Trade Lift Markets

Stocks showed mixed results the first couple of days last week. Optimism around the Q2 corporate reporting season gave way to mostly positive market reaction as the actual corporate reports started to roll in. The S&P 500 edged ahead to two record closes despite pressure on chipmakers.³

Trade negotiations took center stage midweek after the White House announced an agreement with Japan. Stocks extended the rally after news that the U.S. and European Union were approaching an agreement. The Nasdaq closed above 21,000 for the first time on Wednesday, while the S&P hit its 12th record close this year.⁴

Stocks continued their climb after one megacap tech firm posted better-than-expected quarterly results. The S&P 500 logged record closing highs every session, while the Nasdaq closed at record highs on 4 of the 5 days.^5,6

A Tale of Two Houses, Times Two

When fresh housing data emerged this week, one number stood out: new homes are now nearly 8 percent cheaper than existing homes.

The median sales price of a new home in June was $401,800, compared with $435,300 for an existing home—an all-time high. Homebuilders have been reducing prices in an attempt to attract potential buyers.⁷

But there’s another tale of two houses: national versus regional.

Existing home prices rose 2.7 percent last month over May. In the Northeast, where inventory is still constrained, prices rose 4.2 percent in June. However, the market is softening in many other regions of the country. In the South, for example, prices only rose 0.3 percent. Homes stay on the market for longer, and inventory rises, leading some to conclude that it’s a buyer’s market.⁸

Footnotes and Sources

1. ^{WSJ.com, July 25, 2025}
2. ^{Investing.com, July 25, 2025}
3. ^{CNBC.com, July 22, 2025}
4. ^{CNBC.com, July 23, 2025}
5. ^{WSJ.com, July 24, 2025}
6. ^{CNBC.com, July 25, 2025}
7. ^{MarketWatch.com, July 24, 2025}
8. ^{MarketWatch.com, July 23, 2025}

Stocks were mixed last week, battling through tariff talk while responding to upbeat quarterly corporate reports and a trove of updates on the economy.

The Standard & Poor’s 500 Index rose 0.59 percent, while the Nasdaq Composite Index added 1.51 percent. The Dow Jones Industrial Average decreased 0.07 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, skidded 0.46 percent.^1,2

Economic News

All three major market averages posted modest gains to start the week as investors appeared to shrug off tough talk on trade from the White House over the weekend.³

Stocks mostly fell after news that inflation warmed up a bit last month, albeit in line with economists’ expectations. A narrow, chip-led rally developed after a megacap chipmaker said it received assurances from the White House of its ability to sell products in China, pushing the Nasdaq modestly higher.⁴

Stocks continued their climb over the next session following news that consumer spending rebounded last month as trade talk slowed. The S&P 500 posted another record close amid several companies beating expectations as they reported quarterly financials.^5,6

Markets went slightly lower on Friday despite news that consumer sentiment rose last month. The consumer sentiment report also showed a drop in concerns about tariff-induced inflation.⁷

Splitting the Difference

Two themes developed with fresh economic data released last week: inflation and consumers.

First, June inflation data painted a mixed picture. While consumer prices rose at a 2.7 percent annual clip last month (faster than May’s 2.4 percent rate), wholesale inflation was flat. So while retail prices were a concern, wholesale prices currently suggest a muted effect from tariffs.^8,9

The second theme revolved around consumers, who continued to be a source of strength for the economy. Retail sales recovered in June, and while they were still lower than at year-end, consumer sentiment rose to its highest level since February.¹⁰

Footnotes and Sources

1. ^{WSJ.com, July 18, 2025}
2. ^{Investing.com, July 18, 2025}
3. ^{CNBC.com, July 14, 2025}
4. ^{WSJ.com, July 15, 2025}
5. ^{CNBC.com, July 16, 2025}
6. ^{CNBC.com, July 17, 2025}
7. ^{CNBC.com, July 18, 2025}
8. ^{WSJ.com, July 15, 2025}
9. ^{MarketWatch.com, July 16, 2025}
10. ^{MarketWatch.com, July 17, 2025}

Stocks were slightly lower last week, while looking past news of fresh U.S. tariffs on nearly two dozen countries.

The Standard & Poor’s 500 Index fell 0.31 percent, while the Nasdaq Composite Index edged lower by 0.08 percent. The Dow Jones Industrial Average lost 1.02 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, slipped 0.43 percent.^1,2

The Return of the Tariffs

Stocks started the week lower after the White House posted letters to 14 countries announcing new tariffs, set to take effect August 1. They included 25 percent tariffs on South Korea and Japan.^3,4

Stocks dropped briefly midweek after the White House announced tariffs on seven additional countries. But as investors digested the news, markets gradually recovered, hoping the administration would dial back its steepest tariff rates again.

Markets also rallied on fresh AI trade enthusiasm and the latest Fed meeting minutes, which showed a majority of Committee members were open to adjusting interest rates later this year.^5,6

Markets opened higher on Thursday as investors shrugged off news of the 50 percent tariff on Brazil imports, announced shortly after Wednesday’s close. Momentum continued, and the S&P 500 and Nasdaq rose to fresh records.⁷

Then, after Thursday’s close, the White House announced the U.S. was raising tariffs on Canadian imports to 35 percent and was preparing some other tariffs. Markets opened lower on Friday and trended sideways during the trading session.⁸

The T Word

While tariffs drove market headlines last week, another “t word” made news: trillion.

More specifically, $4 trillion in market capitalization. The nation’s largest AI chip maker was the first company to breach that market cap level. It crossed the $4 trillion mark intraday on Wednesday, then closed above it for the first time on Thursday’s close.^9,10

So why does it matter when one stock hits such a milestone? For a market-cap weighted index like the S&P 500, a company valued at $4 trillion has an outsized effect on the overall index’s performance. The largest five companies in the S&P 500 comprise about one-third of the benchmark index.^9,10

Footnotes and Sources

1. ^{WSJ.com, July 11, 2025}
2. ^{Investing.com, July 11, 2025}
3. ^{CNBC.com, July 7, 2025}
4. ^{CNBC.com, July 8, 2025}
5. ^{WSJ.com, July 9, 2025}
6. ^{MarketWatch.com, July 9, 2025}
7. ^{CNBC.com, July 10, 2025}
8.  ^{CNBC.com, July 11, 2025}
9. ^{WSJ.com, July 9, 2025}
10. ^{MarketWatch.com, July 10, 2025}

Trade developments and continued momentum pushed all three major averages to modest gains again for a shortened holiday trading week.

The Standard & Poor’s 500 Index rose 1.72 percent, while the Nasdaq Composite Index added 1.62 percent. The Dow Jones Industrial Average advanced 2.30 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, increased 0.19 percent for the week through Thursday.^1,2

Stocks Gain on Trade Developments

Stocks continued their momentum from the prior week’s records following Canada’s rescinding of its digital services tax, rising on optimism as investors waited for more news on trade.³

The S&P 500 and Nasdaq took a breather on July’s first trading day, while the Dow Industrials posted a modest gain. Then, stocks rallied after the news of the trade deal with Vietnam, moving past the latest ADP employment report, which showed reduced jobs last month for the first time in two years.⁴

In a quick retort to the ADP report, a better-than-expected June jobs report from the Bureau of Labor Statistics gave stocks another boost, reassuring investors that the U.S. economy was weathering trade and geopolitical shocks. The S&P and Dow hit record highs as the short trading week ended.⁵

Jobs Report Mostly Positive

The labor report for June had a few points for investors to cheer. First, employers added 147,000 jobs in June—that was 37,000 higher than economists were expecting. Unemployment ticked down to 4.1 percent from 4.2 percent. Previously reported job gains from April and May were revised upward by 16,000.⁶

Still, companies are in a “no hire, no fire” mode as they wait to see how trade policy impacts the economy. Caveats to the headline numbers: most gains were seen in government and healthcare. Several other sectors, including manufacturing and professional services, were flat or diminished.⁶

The takeaway: good news overall, but uncertainty still lingers beneath the employment surface.

Footnotes and Sources

1. ^{WSJ.com, July 3, 2025}
2. ^{Investing.com, July 3, 2025}
3. ^{CNBC.com, June 30, 2025}
4. ^{WSJ.com, July 2, 2025}
5. ^{CNBC.com, July 3, 2025}
6. ^{WSJ.com, July 3, 2025}

Stocks staged a broad-based rally last week on investors’ hopes for a lasting Middle East ceasefire, hitting fresh record highs along the way.

The Standard & Poor’s 500 Index rose 3.44 percent, while the Nasdaq Composite Index added 4.25 percent. The Dow Jones Industrial Average advanced 3.82 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, increased 3.04 percent.^1,2

Stocks Push Higher

Last week opened with a rally powered by news of a tamer-than-expected escalation of tensions in the Middle East. Stocks continued their rise after this week’s ceasefire agreement, although Wall Street appeared concerned about whether the truce would remain in place.^3,4

Sentiment brightened after the White House played down the approaching July 8 tariff deadlines. Solid corporate earnings, a still-strong labor market, and a recovery in artificial intelligence-related stocks provided some underlying strength to the rally.⁵

As the week wrapped up, the S&P 500 hit its first new high since February—it marked the fastest-ever recovery from a 15-percent decline for the broad-market index. The tech-heavy Nasdaq Composite also closed at an all-time high.^6,7

Economic Data Helped, Too

While trade and Middle East updates powered most of the markets’ rise last week, a few economic bits of news also contributed to the week-long rally. For example, consumer sentiment climbed 16 percent in May—its first increase in six months.^8,9

“The improvement was broadbased across numerous facets of the economy, with expectations for personal finances and business conditions climbing about 20% or more,” the University of Michigan said in a statement.

Footnotes and Sources

1. ^{WSJ.com, June 27, 2025}
2. ^{Investing.com, June 27, 2025}
3. ^{CNBC.com, June 23, 2025}
4. ^{CNBC.com, June 24, 2025}
5. ^{WSJ.com, June 18, 2025}
6. ^{WSJ.com, June 27, 2025}
7. ^{WSJ.com, June 27, 2025}
8. ^{WSJ.com, June 24, 2025}
9. ^{UMich.edu, June 27, 2025}

Stocks were mixed during the holiday-shortened trading week as uncertainty over conflict in the Middle East weighed on investors.

The Standard & Poor’s 500 Index slipped by 0.15 percent, while the Nasdaq Composite Index rose by 0.21 percent. The Dow Jones Industrial Average was flat (+0.02 percent). The MSCI EAFE Index, which tracks developed overseas stock markets, declined 1.54 percent.^1,2

Stocks Rise, Then Slump

Stocks opened higher, and oil prices fell at the start of the week as investors hoped Middle Eastern tensions would ease.³

However, as investors parsed through updates on the conflict, stocks fell over ongoing uncertainty. Conflicting statements from those involved, as well as from world leaders, contributed to the uncertainty.⁴

Midweek, stocks rallied ahead of the Fed’s interest rate decision. Markets seemed to dismiss news that housing starts dropped unexpectedly to their lowest level in five years.

The Fed held short-term rates steady. Stocks moved up and down during the Fed Chair’s press conference before ending the trading session slightly down ahead of Thursday’s stock market holiday.⁵

Following the holiday, anxious investors refocused on geopolitical tensions and developments. As the week closed out, investors appeared to take a risk-off approach heading into the weekend.⁶

The Fed Holds Rates Steady

As expected, the Federal Reserve kept the Fed funds rate at its target range of 4.25 percent and 4.5 percent. However, the central bank did suggest it may adjust rates later this year, and policymakers expressed concerns about inflation and the outlook for gross domestic product.

Following the decision, Fed Chair Powell said policymakers are “well positioned to wait” before moving on short-term rates. Powell indicated that trade policy has clouded the inflation outlook, making policymakers concerned about consumer prices.^7,8

Footnotes and Sources

1. ^{WSJ.com, June 20, 2025}
2. ^{Investing.com, June 20, 2025}
3. ^{MarketWatch.com, June 16, 2025}
4. ^{CNBC.com, June 17, 2025}
5. ^{WSJ.com, June 18, 2025}
6. ^{CNBC.com, June 20, 2025}
7. ^{MarketWatch.com, June 16, 2025}
8. ^{WSJ.com, June 18, 2025}