Despite the week’s tech-led pullback, Wall Street ended August on strong footing, supported by robust small-cap and cyclical rotation, retail resilience, and anticipation of Fed support. Investors now await September’s inflation and jobs data for fresh clues on the durability of the bull market and the path for policy into year-end. However, as the last trading week of August concluded, U.S. equity markets paused their rally with a modest pullback, digesting a flurry of economic data, notable policy changes, and shifting sector rotations. While recent records stood firm, investors exercised caution ahead of fresh inflation readings, tariff adjustments, and the coming Fed decision in September.
Index Performance
- S&P 500: Declined 0.1% on the week to 6,460.26, after hitting five record highs earlier in August. The index still closed the month up nearly 2%, notching its fourth consecutive monthly gain.
- Dow Jones Industrial Average: Dropped 0.2% to 45,544.88. Despite the weekly loss, blue chips remain higher year-to-date, having set new records earlier this month.
- Nasdaq Composite: Fell 1.2% to 21,455.55, pressured by a late-week sell-off in major tech names as traders rotated defensively.
- Russell 2000: Rose 0.2% to 2,366.42, as small-caps outperformed and risk appetite broadened, echoing a nearly 8% monthly rally—its strongest in more than a year.
Macro & Economic Highlights
- Inflation: The Federal Reserve’s preferred gauge, core PCE, ticked up to 2.9% year-over-year. Headline inflation steadied as energy prices cooled, but price pressures persisted in services and discretionary goods.
- GDP & Labor: Second-quarter GDP recorded 3.0% annualized growth, rebounding from earlier weakness. July’s jobs data reflected slowing momentum, with unemployment at 4.2%, while weekly jobless claims hovered near 224,000, highlighting ongoing labor market resiliency but greater slack than earlier in 2025.
- Rates & Yield Curve: The 10-year Treasury yield edged down to 4.23 and the 2-year closed at 3.625%, reflecting softer inflation readings and rate cut optimism ahead of September’s FOMC meeting. The yield curve remains moderately inverted, keeping recession risks on radar.
Corporate News & Notable Earnings
- NVIDIA (NVDA): Approached record highs early in the week on strong earnings optimism but finished off 2.14% over the last 5-days at $174.18 as the China chip ban and sector-wide profit-taking tempered gains. Analysts projected robust EPS and revenue growth driven by AI momentum.
- Tesla (TSLA): Closed down 1.81%% to $333.87 over the last 5-days, as the company’s steady production outlook and software news offset broader EV sector consolidation.
- Meta Platforms (META, $738.70, -2.13% over the last 5-days): Experienced mild profit-taking following August’s tech surge, with regulatory and AI storylines remaining central.
- McDonald’s (MCD): Closed at $313.54, down .17% over the last 5-days. Continued value promotions and collaborations (such as the BTS tie-in) provided a defensive backdrop.
- Oracle (ORCL): Gave up 4.33% to $226.13 over the last 5-days, reflecting sector pressure and valuation challenges after a strong run.
- Intel (INTC): Softened 1.81% on the week to $24.35, as sector sentiment turned cautious despite ongoing government support for domestic chip capacity.
- Palantir Technologies (PLTR): Dropped 1.28% over the last 5-days to $156.71 amid persistent short pressure despite new government contract wins and an expanding federal pipeline.
- Rio Tinto Group (RIO): Rose .05% to $62.72 over the last 5-days amid sideways movement in global metals prices and growing industrial demand uncertainty.
Mergers, Acquisitions & IPOs
Several large deals closed in August, including T-Mobile’s (TMUS, $251.99, +.02% over the last 5-days) $4.3 billion acquisition of U.S. Cellular (telecom) and the $6.7 billion merger of Mallinckrodt and Endo Pharmaceuticals. On the IPO front, standout offerings included:
- Bullish (BLSH): The crypto exchange finished at $64.43 (+74% from IPO pricing).
- HeartFlow (HTFL, $2=31.50, +8.01%), Etoiles Capital (EFTY), Darkiris (DK, $7.87, 54.92%): Recent mid-cap IPOs delivered strong debut gains, demonstrating ongoing risk-on appetite even amid late-August volatility.
Tariff News
A major trade shift arrived as the U.S. ended the $800 “de minimis” tariff exemption for small imported packages, ending a loophole that let over a billion parcels enter duty-free last year. Global logistics players suspended many low-value shipments as the new flat tariff regime ($80–$200 per item) took effect, with full 10–40% country-based rates set for February 2026. This policy is expected to ripple through e-commerce, international retailers, and consumer prices in coming months.
FOMC & Outlook
No FOMC decision was made this week; all eyes now turn to the September policy meeting. Futures markets still expect a possible rate cut as inflation moderates and global uncertainties grow, but sticky core price data and a complex policy backdrop keep investors vigilant.
Commodities & Cryptocurrencies Closing Prices
- Gold: Closed at $3,516.10/oz.
- Silver: Ended at $40.26/oz. the Globasl X Silver Miners ETF (SIL) rose +5.01% over the last 5-days.
- Oil (WTI): Closed at $64.01/barrel.
- Bitcoin: Traded in the $108,265 range.
