Market Data as of Week Ending: 9/5/2025 unless noted otherwise
Equities edged higher last week despite softness in the labor market. Mid-cap stocks outperformed both small-cap and large-cap stocks. Style trends were
mixed, but large-growth stocks extended their year-to-date outperformance against large-value. Five sectors of the S&P 500 finished the week higher, led by
strong gains in Communication Services, which benefited from a positive antitrust ruling regarding Alphabet. Energy was the weakest sector as oil prices
declined. Developed foreign stocks moved modestly higher, though European and Japanese markets were muted. Emerging markets also advanced despite
weakness in Chinese equities.
Bonds traded higher as yields fell in response to Friday’s jobs data. The 2-year Treasury yield declined to 3.51% and the 10-year Treasury yield edged down to
4.10%. Long-duration bonds benefited the most from lower yields, with long-duration government and corporate bonds returning more than 2.0% for the week.
High-yield bonds moved slightly higher despite a modest increase in spreads. Investment-grade corporate bond yields and high-yield bond yields ended at
4.78% and 7.07%, respectively.
Economic data for the week centered on the labor market, which continues to show weakness. The Bureau of Labor Statistics reported that 22K jobs were added
in August, below expectations and largely supported by 31K job gains in healthcare. June employment was revised down to a 13K job loss, while July was
revised modestly higher. The civilian labor force in August edged up, helping to keep the unemployment rate steady at 4.3%. The report also showed that
average hourly earnings rose 0.3%, in line with expectations, while average weekly hours worked held at 34.2. The JOLTS report indicated that job openings in
July slipped to 7.2M, slightly below estimates. ADP reported that private employers added 54K jobs in August, down from July and modestly below
expectations.