This was my unofficial last week of summer. My daughter, despite perpetually being 3 months old in my head, is somehow starting Kindergarten on Monday. As Dolly said, time marches on and sooner or later you realize it’s marching across your face. Let’s recap the wild week that was.
📊 Weekly Market Recap
- S&P 500 return Year-to-date were approximately 10.20%
- S&P 500 return over the past month were approximately 1.70%
- S&P 500 return over the past 7 days were approximately 0.27%
This Week in the Markets- 3 Things to know
- Fire In The Hole– this morning Jerome Powell was in Jackson Hole for the Fed’s regularly scheduled annual retreat. Instead of doubling down on hawkish talk, the Fed Chair struck a softer note, admitting inflation isn’t completely tamed but making it clear that the labor market is cooling off fast. With both supply and demand showing cracks, Powell said the Fed may need to adjust its stance soon which in market speak basically means he’s opening the door to a September rate cut. He didn’t lock it in, but he definitely left investors with the feeling that easier policy is on the horizon. This led to a massive rally in the market to close out the week. (Which reversed the previous four days – see bullet 2.)
2. Markets looking to correct themselves– This week began with a cautious tone as equities pulled back. Commodities were in focus, with lumber and copper showing sharp swings on concerns about demand in housing and construction. Investors were watching closely to see whether recent gains had outpaced fundamentals, with the market showing signs of wanting to “correct itself” after weeks of steady climbs. Higher interest rates and tariff chatter added pressure, reinforcing the sense that risk assets may need to reprice before the next leg higher.
3. Cracker Barrel lesson– the beloved rest stop announced a rebrand of its logo and dining rooms. Their customers, and investors, promptly revolted and knocked around 10% off its stock price. I only mention this as a reminder: this is why we diversify. You never know when one company might shoot itself in the foot. Just because you serve biscuits and rocking chairs doesn’t mean you’re safe from volatility.
This week’s first four days were driven by hotter inflation readings, slowing housing activity, and a handful of retailers with weaker outlooks that had investors playing defense. But Powell’s tone helped ease some of that pressure. The difference now is that investors have more confidence the Fed won’t just sit on its hands and risk over-tightening. That’s a big mental shift for a market that’s been stuck in “wait and see” mode.
Looking ahead, it’s all about September. If Powell follows through with a cut, that could be the spark for another leg higher, especially in growth stocks that love lower rates. And even beyond that, the idea of steady, gradual cuts into 2026 gives investors a reason to stay positive. Volatility isn’t going away but instead of bracing for downside, traders are starting to see pullbacks as buying opportunities again.
S&P 500 SECTOR SNAPSHOT- Past Month
Top Movers In the S&P 500 This Week
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