Stocks rebounded last week as investor optimism for a September rate adjustment (lower rate expectations) and strong Q2 corporate results overcame the rollout of fresh tariffs. The Standard & Poor’s 500 Index rose 2.43 percent ending Friday's session at 6,389.45 bringing quarter-to-date gains to 3% and year-to-date growth to around 8.6%. The Nasdaq Composite Index gained 3.87 percent closing the week at 21,450.20 and is up YTD about 10.42%. The Dow Jones Industrial Average added 1.35 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, increased 2.77 percent.1,2 Stocks GyrateStocks pushed higher to start the week, with major averages gaining between 1.3 percent and 2 percent—their best day since May. Investors seemed more optimistic for a rate move after the weaker-than-expected July jobs report.3,4 The odds of a 25-basis-point rate cut by the Federal Reserve in September surged to 89% as of late Friday, from 80% a week ago and 61% a month earlier, according to the CME FedWatch tool. Initial jobless claims rose to 226,000 in the week ended Aug. 2, up from an upwardly revised 219,000 in the previous week, compared with expectations for 222,000 in a Bloomberg survey. Stocks rose again midweek after the White House confirmed a mega-cap tech company would invest $500 billion more in domestic manufacturing. News of additional tariffs on India was greeted with a muted reaction from investors.5 The updated tariffs previously announced by the White House went into effect on Thursday. Markets initially rose in early trading but then came under pressure as the day continued.6 But the S&P and Dow rose again on Friday, ending the week with solid gains. The tech-heavy Nasdaq ended the week with a record close.7 Earnings helped fuel the rally in the information technology sector, with Palantir Technologies ( PLTR ) surging more than 21% this week after Q2 results topped estimates as sales in the US increased. Apple ( AAPL ) shares jumped over 13% this week as the company announced plans to invest an additional $100 billion in the US and bring more of its supply chain and advanced manufacturing to the country. That commitment, along with the launch of Apple's American Manufacturing Program, suggests that several of its products may be exempt from looming tariffs, BofA Securities said in a report. Tesla (TSLA), also an index heavyweight along with Apple, was the second-biggest gainer in consumer discretionary. The company awarded CEO Elon Musk 96 million new shares, it said in a filing. The shares will only vest if Musk stays in a top executive role through 2027 and come with a five-year holding period, except for taxes or purchase costs. Shares of the electric vehicle manufacturer jumped 8.9% this week. Decliners included shares of Eli Lilly and Company ( LLY ) , which fell almost 18% this week in the healthcare sector. Though Eli Lilly raised its full-year outlook and reported stronger-than-expected second-quarter results, its shares were still sold off as data from its investigational weight-loss pill disappointed investors. |
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Economy WatchServices comprise 70 percent of the economy, so Wall Street closely monitors the Institute for Supply Management’s Services Index. The Institute for Supply Management's U.S. services index fell to 50.1 in July from 50.8 in June, compared with the 51.5 expected in a Bloomberg-compiled survey. The 49.9 ISM print in May was the first sub-50 reading since June 2024 and only the fifth in the 62 months since the pandemic recovery began in June 2020, according to a note from Jefferies. A reading below 50 denotes contraction. So, news on Tuesday that growth in services came below economists’ expectations was a bit of a concern. However, investors seemed to quickly look past the number and focus more on the 122 S&P 500 companies that reported earnings last week.8,9 This Week: Key Economic Data Tuesday: NFIB Small Business Optimism Index. Consumer Price Index (CPI). Federal Budget. Wednesday: Atlanta Fed President Raphael Bostic speaks. Chicago Fed President Austan Goolsbee speaks. Thursday: Weekly Jobless Claims. Producer Price Index (PPI). Fed Balance Sheet. Richmond Fed President Tom Barkin speaks. Friday: Retail Sales. Industrial Production. Import & Export Prices. Business Inventories. Consumer Sentiment. Source: Investors Business Daily - Econoday economic calendar; August 8, 2025 This Week: Companies Reporting EarningsWednesday: Cisco Systems, Inc. (CSCO) Thursday: Applied Materials, Inc. (AMAT), Deere & Company (DE), NetEase, Inc. (NTES) Source: Zacks, August 8, 2025. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice. |
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“We should all do something to right the wrongs that we see and not just complain about them.” – Jacqueline Kennedy Onassis |
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Using the IRS2Go AppDid you know that the IRS has an app that makes checking some things off your tax to-do list easy? Using the app, you can:
Tip adapted from IRS10 |
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Satisfy Your Sweet Tooth With DatesDo you have a sweet tooth but want to limit refined sugar? Dates are just the answer! These nutrient-rich powerhouses are sweet, succulent, and good for you! Dates are high in fiber, potassium, magnesium, and Vitamin B6, among many other nutrients. They are also high in antioxidants and may promote brain, bone, and blood sugar control. Dates are easy to add to your diet. Snack on them, add them to dishes as a natural sweetener, or blend them in a smoothie. These nutritious and delicious treats are perfect for kicking cookies and cakes without giving up an indulgent taste. Tip Adapted from Healthline11 |
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What is worn by the foot and often bought by the yard? Last Week's Riddle: They can run side by side for thousands of miles; they are made of steel. While they constantly touch the ground, they seldom meet or touch each other. What are they? |
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Lotus Temple |
Footnotes and Sources1. WSJ.com, August 8, 2025 2. Investing.com, August 8, 2025 3. MarketWatch.com, August 4, 2025 4. CNBC.com, August 5, 2025 5. CNBC.com, August 6, 2025 6. WSJ.com, August 7, 2025 7. WSJ.com, August 8, 2025 8. WSJ.com, August 5, 2025 9. Advantage.FactSet.com, August 1, 2025 10. IRS.gov, April 18, 2024 11. Healthline, March 19, 2025 12. MT Newswires, YCharts.com, Aug. 4 - Aug. 8, 2025 |
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