Happy Friday! This week was mostly uneventful, unless you happen to be a happy Apple shareholder. Let’s do a quick recap so you can enjoy your weekend.
📊 Weekly Market Recap
- S&P 500 return Year to date were approximately 8.52%
- S&P 500 return over the past month were approximately 1.92%
- S&P 500 return over the past 7 days were approximately 0.03%
This Week in the Markets- 3 Things to know
1.Tech stocks roared back– This week as mega-cap names led the charge with Apple and AMD both topped earnings expectations, sparking a rally across the Nasdaq. Apple reassured investors with steady iPhone demand and stronger-than-expected services growth, while AMD not only delivered upbeat results but also announced a major chip deal that will be manufactured in the U.S., signaling a boost for domestic semiconductor capacity.
2. The Fed is hinting at a possible September rate cut– With recent comments suggesting policymakers see room to ease if inflation continues to trend lower. Market odds for a cut are climbing, and traders are increasingly confident the Fed will act before year-end to support slowing growth.
3. What this means for Q4 of 2025 — a September cut could fuel more momentum for growth and tech stocks, lower borrowing costs for businesses and consumers, and give housing and credit markets a tailwind. But the Fed will be watching inflation closely and if prices heat up again -the optimism could quickly fade and bring volatility back to the forefront.
Following up on recent market action, this week’s rebound in tech felt like a revival of the momentum trade. Apple’s earnings reassured Wall Street that its core products are holding steady while services revenue continues to expand, helping offset softer hardware trends. AMD’s strong quarter, combined with its U.S.-based chip manufacturing announcement, was seen as a strategic move to secure supply chains, reduce reliance on overseas production, and take advantage of the government’s push for domestic tech investment. The result: the Nasdaq posted one of its best weeks in months, snapping a stretch of uneven performance.
The Fed’s potential September rate cut looms large over the rest of the year. With inflation easing to multi-year lows, wage growth slowing, and pockets of weakness emerging in the labor market, Jerome Powell and the FOMC may see the perfect opportunity to begin dialing back the most aggressive tightening cycle in decades. For equity markets- especially growth and tech, this is almost an open invitation to keep pushing higher, as cheaper capital tends to flow into sectors that promise long-term earnings expansion.
Of course, the risk is that this window could close quickly. Any sign of inflation coming back, whether from energy prices, housing, or supply chain shocks, could force the Fed to hit pause on easing and potentially rattle markets. For now, though, investors are leaning into the “soft landing” narrative, betting that the combination of steady growth, cooling inflation, and a friendlier Fed could set the stage for a strong finish to 2025…even if it comes with a few bumps along the way.
S&P 500 SECTOR SNAPSHOT- Past Week
Top Gainers In the S&P 500 This Week
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