Market Data as of Week Ending: 8/29/2025 unless noted otherwise
Equities finished the week moderately lower on light trading volumes heading into a holiday weekend. Market activity was relatively quiet with most investors
focused on Nvidia’s earnings, which came in above expectations and helped ease concerns related to China demand and AI fatigue. Small-cap stocks
outperformed mid- and large-cap stocks and continued to close the year-to-date performance gap. Style trends were mixed as growth outperformed value
among mid- and large-caps, while value outperformed growth in small-caps. Cyclical sectors outperformed defensive sectors, with Utilities and Consumer
Staples among the weakest areas. European equities traded lower and weighed on international benchmarks, while emerging markets also ended the week in
negative territory despite strength in Chinese stocks.
Fixed income markets finished the week higher as yields moved lower on the front end of the curve. The 2-Year Treasury yield declined to 3.59% and the 10-Year
Treasury yield edged down to 4.23%. Shorter-duration bonds benefited from the steepening yield curve, while longer-duration Treasuries and corporates faced
modest pressure. High-yield bonds continued to perform well across the curve as spreads tightened further.
Economic data released during the week was limited and largely aligned with expectations. Core PCE, the Federal Reserve’s preferred inflation gauge, rose 0.3%
in July and 2.9% from a year earlier. Personal income increased 0.4%, supported by higher compensation, while consumer spending advanced 0.5% with gains
across both goods and services. Second-quarter GDP was revised up to 3.3% on stronger investment and consumer activity, partly offset by weaker government
spending. Durable goods orders fell 2.8% in July, which was better than expected and a significant improvement from the 9.4% decline in June. Excluding the
volatile transportation component, new durable goods orders were more encouraging, rising 1.1% in June. Labor market data showed initial jobless claims
edged down to 229,000, while continuing claims remained elevated at 1.954 million.