Strong equity market performance this week reflected both a pivot in monetary expectations and robust underlying resilience outside of large-cap tech, signaling a potentially broader participation as the late-summer rally continues. With tariffs, inflation, and rate moves still in sharp focus, investors are bracing for an eventful close to the quarter. Yes indeed, equities soared in a powerful rally as the Federal Reserve’s Jackson Hole symposium stoked expectations for a September rate cut, overshadowing lingering inflation and tariff challenges. The Dow closed at a new all-time high, while sector and stock rotations signaled a shift in investor sentiment and an appetite for recovery across the broader market.
Index Performance
- S&P 500: Jumped 96.74 points to 6,466.91, snapping a five-day losing streak and locking in weekly gains as investors responded to Powell’s dovish signals.
- Dow Jones Industrial Average: Soared 846.24 points to a record 45,631.74, leading all major indices and benefiting from rotation into cyclical and financial names.
- Nasdaq Composite: Despite a robust showing Friday, the index ended the week down 0.6% amid profit-taking in high-flying tech stocks and investor rotation into value.
- Russell 2000: Outperformed with a 3.3% weekly surge, the year’s strongest advance for the small-cap benchmark, as traders anticipated a friendlier rate environment.
Macroeconomic Reports
- Inflation: Consumer Price Index (CPI) remained at 2.7% YoY in July, but Core CPI crept up to 3.1%. Wholesale inflation (PPI) climbed to a new high of 3.3% thanks to persistent cost pass-through from tariffs, fueling debate about the stickiness of post-pandemic price growth.spglobal+1
- Retail Sales: Continued positive momentum with gains led by discretionary and e-commerce segments, reflecting enduring consumer resilience.
- Labor Market: The Jackson Hole Symposium and recent Fed minutes highlighted softer labor market dynamics, with the Fed warning of rising downside risks to jobs and growth as inflation’s trajectory remains uncertain.
Corporate & Sector Highlights
- NVIDIA (NVDA): Fell 1.36% over the last 5-days as chip and AI names experienced profit-taking after a year of outsized gains. The company remains a focal point for tariff-related supply chain discussions.
- Tesla (TSLA): rose 2.86 on the week.
- Meta Platforms (META): Pulled back 3.8% over the last 5-days, caught in sector-wide shifts as investors weighed heavy AI investment against rotating sentiment.
- McDonald’s (MCD): Gained 1.66% over the last 5-days to $314.07, benefiting from defensive flows and the announcement of a new BTS Happy Meal campaign.
- Intel (INTC): add .98% over the last 5-days even as government investment interest and reshoring prospects lifted the stock against a downbeat tech landscape.
- Oracle (ORCL): Dropped 4.80% over the last 5-days to $236.37 as sustained profit-taking followed a long rally driven by optimism in cloud and AI.
- Palantir Technologies (PLTR): Descended 10.40% over the last 5-days, as analytics and cloud stocks faced risk-off appetite and some profit extraction, despite strong contract wins in government.
- Rio Tinto Group (RIO): Rose 2.37% over the last 5-days to $62.69, supported by commodity optimism and capital discipline amid tariff-driven macro headwinds.
Mergers, Acquisitions & Buyouts
Notable deals this week included UnitedHealth Group’s (UNH, $306.42, +1.12% over the last 5-days acquisition of Amedisys, Inc.—the home health provider—for $3.2 billion, underscoring the strategic jockeying among S&P 500 healthcare leaders. Other activity centered on financials and international industrial consolidation.
IPOs: BLSH and Beyond
Bullish (BLSH), the crypto exchange, continued its high-profile debut, finishing above $70 and nearly doubling its offer price despite pronounced volatility. Other IPOs such as Etoiles Capital Group (EFTY, $6.98, +9.92% over the last 5-days) and HeartFlow (HTFL) likewise saw strong early performance.
Trade and Tariffs
Tariff discussions dominated policy headlines. The U.S. affirmed reciprocal tariffs on key trade partners and maintained its current posture toward China, aiming for revenue generation over consumer rebates. The international postal exemption ended, halting low-cost package deliveries from countries such as Sweden and Norway. Fed Chair Powell explicitly cited tariffs as a visible influence on inflation at Jackson Hole, reinforcing their central role in upcoming policy moves.
Yield Curve & Fed Policy
Treasury yields retreated by week’s end—2-year near 3.709%, 10-year at 4.264%—as the market digested clear signals from Powell and the FOMC that rate cuts are likely in September barring a new inflation shock. The Fed also announced updated longer-term goals focusing on maximum employment and price stability, enhancing their strategic transparency.
Commodities & Cryptocurrencies Closing Prices
- Gold: Closed up 2.57% over the last 5-days at $3,417.20/oz with demand steady amid heightened trade tension.
- Silver: Closed up 2.45% over the last 50days at $38.88/oz.
- Oil (WTI): Closed up .55% at $63.77/barrel over the last 5-days.
- Bitcoin: Consolidated just above $117,235 up approximately .54% over the last 5-days.
