Weekly Market Update

Weekly Market Update

The US stock market experienced a mixed week, with the S&P 500 (^GSPC) closing up 0.8% for the week. The Dow Jones Industrial Average (^DJI) gained 0.5%, while the tech-heavy Nasdaq Composite (^IXIC) climbed nearly 1%. Despite some volatility, all three major indexes posted gains for the week.

Key Takeaways
• US stocks rebounded sharply on Monday after a sell-off sparked by disappointing labor data and trade uncertainty.
• The S&P 500 (^GSPC) jumped 1.5%, while the Dow Jones Industrial Average (^DJI) rose 1.3%.
• Tech stocks led the gains, with Nvidia (NVDA) jumping 3% and Meta (META) and Microsoft (MSFT) reaching all-time highs.
• Earnings season continues to roll on, with over 100 S&P 500 companies set to report this week.

Economic Data
• The services sector unexpectedly flatlined in July, with the Institute for Supply Management's (ISM) services PMI registering a reading of 50.1.
• Economic data showed that the labor market is still strong, despite some revisions to previous months' tallies.

Trade Update
• President Trump's tariffs on dozens of countries took effect this week, raising concerns about rising costs and inflationary pressures.
• Apple (AAPL) shares climbed after Trump announced a new $100 billion investment in US manufacturing.

Fed Watch
• The Federal Reserve is expected to cut interest rates at its next meeting in September, with over 90% of bets on a rate cut.
• President Trump's nomination of Stephen Miran to the Fed board has raised questions about the central bank's independence and leadership.

Big Picture
• Despite some volatility, market strategists remain bullish on equities, citing record cash reserves and positive earnings growth expectations.
• The AI-driven bull market continues to drive growth in Big Tech stocks, with Nvidia (NVDA) and Alphabet (GOOG, GOOGL) leading the way.