U.S. equities ended a turbulent week with a broad-based rally Friday, buoyed by in-line inflation data and optimism around a September rate cut, although the S&P 500, Dow, Nasdaq, and Russell 2000 indexes all posted modest weekly declines as the bears beat the bulls overall this week. Investor attention centered around mixed macroeconomic reports, multiple major company headlines, fresh tariff announcements, Fed policy expectations, and notable sector shifts, setting the tone for Q3’s final stretch.
Major Index Performance
The S&P 500 closed Friday at 6,643.70, up 0.6% for the session but down 0.3% for the week. The Dow Jones Industrial Average gained 0.7% Friday, ending at 46,247.29 but lost 0.1% week-over-week. The Nasdaq Composite advanced 0.4% to 22,484.07 yet declined 0.7% for the week, while the Russell 2000 finished at 2,434.32, slipping 0.6% over the period. Despite the soft weekly outcome, all four benchmarks remain strongly positive year-to-date: S&P 500 (+13%), Dow (+8.7%), Nasdaq (+16.4%), and Russell (+9.2%).
Macroeconomic & FOMC Developments
U.S. GDP for Q2 was revised higher to 3.8% annualized, exceeding forecasts and confirming ongoing economic resilience. August’s PCE inflation was in line with expectations, showing 0.3% monthly and 2.9% core annual increases, which eased fears of acceleration. Consumer spending in August outperformed, and weekly jobless claims continued to decline. The labor market, while cooling (unemployment rose to 4.3%), remains historically solid. The FOMC, after September’s 25bp rate cut (target now 4.00–4.25%), continues to weigh the timing of further cuts, with markets pricing in a high likelihood of another move by October, and policymakers signaling caution given persistent inflation risks.
Yield Curve & Rates
Treasury yields steepened slightly as the 10-year note rose to 4.176%, the 2-yr moved to 3.647%, and yield curve movements reflected investor recalibration around Fed rate cut expectations. Mortgage rates ticked up to 6.39%, presenting ongoing affordability challenges for homebuyers.
Tariffs—Key Policy Developments
President Trump announced a new round of tariffs, including 100% levies on branded pharmaceuticals and higher rates on trucks and kitchen cabinets, sparking fresh debate about inflation, trade dynamics, and sector impacts, especially for multinationals with large international exposure,
Commodity & Crypto Market Moves
Gold traded up 1.31% over the last 5-days to $3,789.80/oz and silver moved up 5.86% over the last 5-days to $46.365/oz. Oil prices moved up +4.07% over the last 5-days to $65.19/bbl on stable demand and supply constraint news. Bitcoin retreated below $110,000 after recent surges, while most crypto-linked stocks followed suit, mirroring broader risk-adjusted sentiment shifts.
Company Highlights & Share Price Moves
- NVIDIA (NVDA): Shares rose 32.69% YTD, and +.86% over the last 5-days benefiting from surging AI accelerator demand and strong positioning in the sector.
- Apple (AAPL): The iPhone 17 launch spurred a 4% rally midweek, helping Apple erase 2025’s earlier losses. Shares gained roughly 6.5% this week, now modestly positive for the year, with record iPhone launch demand offsetting ongoing ASP pressure.
- Tesla (TSLA): Stock soared to new 2025 highs above $440.40, now up +9.05% YTD and +25.23% over the last month, propelled by its robotaxi rollout, low-cost EV momentum, and AI energy initiatives, despite continuing macro and tariff uncertainty.
- Broadcom (AVGO): Shares closed at $334.53, down 3.02% for the week amid profit-taking and modest sector rotation out of semis, though institutional buying remains robust.
- Meta Platforms (META): Stock ended at $743.75, down 4.45% over the last 5-days. News includes the launch of an ad-free service amid sustained leadership in digital advertising and social engagement.
- McDonald’s (MCD): Closed at $305.24, slightly up+.95% on the week as investors digested robust Q2 earnings and steady global sales growth, with analyst upgrades and modest YTD returns of over 5.30%.
- Rio Tinto Group (RIO): Shares climbed to $64.80, up nearly 3.88% week-over-week, powered by resilient metals pricing and cautious optimism on global demand despite fresh tariff headwinds.
- Oracle (ORCL): Reported revenue up 12% YoY with a surge in AI cloud infrastructure demand, but EPS missed by $0.01; shares settled near $283.46, off 8.16% over the last 5-days.
- Intel (INTC): Jumped nearly 4.44% Friday, capping a run fueled by major capital partnerships (SoftBank $2B, Nvidia $5B), federal investment, and improved outlook alongside robust AI/PC sector demand. Shares closed at $35.50 up 20.01% over the last 5-days nearly 80% YTD.
- Opendoor Technologies (OPEN): Shares surged midweek on news of a top institutional investor taking a 5.9% stake and strong housing data. Closed at $8.81 Friday, off highs as investors took profits, but still up 450.62% YTD.
- Palantir Technologies: Drifted 2.64% lower to $177.57 over the last 5-days, but remains up ~135% in 2025 amid relentless AI demand and a notable price target hike to $215 from Bank of America, emphasizing its agentic AI tech as a key differentiator. Revenue soared 48% YoY last quarter.
