RicKomarek.com
Hello, and welcome to your weekly market recap for the week ending August 29th, 2025.
It was a week of two halves on Wall Street. Markets pushed to new records mid-week before a bout of selling pressure emerged ahead of the long holiday weekend.
The major indices finished the week nearly flat after the late-week downturn. The S&P 500 touched all-time highs on both Wednesday and Thursday before pulling back, ultimately closing the week down just a tenth of a percent at 6,460. The Dow Jones Industrial Average followed a similar path, finishing the period down about 0.2% to close at 45,544. The week’s gains were largely driven by a narrow group of mega-cap technology stocks before the broader market softened on Friday.
In the bond market, the 10-year Treasury yield was relatively stable, churning in a tight range between approximately 4.21% and 4.28%. This steadiness came as investors digested a mix of economic reports and commentary from Federal Reserve officials.
On the economic front, second-quarter GDP was revised higher to a solid 3.3% annual rate. The Fed’s preferred inflation gauge, the core PCE price index, came in as expected at 2.9% year-over-year. This data, along with cautiously optimistic comments from several Fed governors, solidified investor expectations for an interest rate cut in September, with markets pricing in a probability near 90%.
Sector performance was varied. The semiconductor space faced headwinds late in the week following some disappointing corporate earnings. Retailers saw mixed results, while the energy sector found some quiet support.
Looking ahead, U.S. markets will be closed on Monday in observance of the Labor Day holiday.
That’s your weekly market wrap-up.