Most U.S. equity indexes ended the week modestly lower on relatively light trading volumes as markets headed into a holiday weekend and the unofficial end of summer. Small-cap stocks outperformed the S&P 500 Index for the third week in a row. Meanwhile, the Dow Jones Industrial Average logged a new record high during the week before losing ground on Friday, ultimately finishing the week lower. Much of the attention was focused on chipmaker NVIDIA’s earnings release after the market closed on Wednesday. Nvidia reported results that generally beat consensus estimates, and while the stock pulled back some on Thursday, the numbers appeared strong enough to ease some recent concerns around the AI-driven rally that has helped propel indexes to all-time highs this year. Concerns about the potential erosion of the Federal Reserve’s independence also garnered attention during the week following President Donald Trump’s announcement that he would be firing Fed Governor Lisa Cook. On the US macro side, inflation was unchanged in July; GDP growth was revised higher. Consumer confidence dips while jobless claims show modest improvement. U.S. Treasuries generated positive returns for the week, with short- and intermediate-term yields declining while long-term yields finished little changed. The STOXX Europe 600 Index ended 1.99% lower while Mainland Chinese stock markets advanced, extending a recent rally. Gold surged to a new record closing high in August...
Have a great week-end
Charles for the team