Global equity markets advanced despite volatility from U.S.–China trade headlines and a spike in oil prices following sanctions on Russia’s top oil firms. In the US, Small- and mid-caps outperformed large caps, with technology and energy sectors leading gains while utilities and consumer staples lagged. The ongoing government shutdown delayed several economic reports, but September inflation data was released late. Headline inflation rose slightly to 3.0%, just below expectations, while core inflation held steady at 3.0%. S&P Global’s preliminary PMI readings showed business activity strengthening in October. U.S. Treasury yields fluctuated: short-term (1–3 year) yields rose, while the 10-year yield declined.

U.S. stocks rose for the week, recovering from the previous Friday’s steep sell-off, the S&P 500’s worst day since April. The rebound came amid easing U.S.-China trade tensions, dovish comments from Federal Reserve officials, and optimism from new deals in the artificial intelligence sector. The start of Q3 earnings season further boosted sentiment, as major banks like JPMorgan Chase, Citigroup, and Wells Fargo all beat expectations. By Friday, 12% of S&P 500 companies had reported, with 86% exceeding earnings forecasts, according to FactSet. However, gains were partly reversed on Thursday after two regional banks revealed loan issues linked to alleged fraud, reigniting concerns about credit risks and the health of smaller lenders.

U.S. stocks fell for the week as renewed U.S.-China trade tensions and concerns over the prolonged government shutdown weighed on sentiment. Early gains, driven by enthusiasm for AI-related companies and a major AMD-OpenAI partnership that boosted AMD shares over 20%, were erased after President Trump threatened major new tariffs on Chinese goods. Gold surged past $4,000 per ounce, reflecting heightened geopolitical and economic uncertainty. Investors are now focused on the upcoming Q3 earnings season, especially since the shutdown has halted major economic data releases. Analysts expect the S&P 500 to post its ninth straight quarter of earnings growth.

Stocks posted solid gains, shrugging off the U.S. government shutdown that began on Thursday. US equities appeared to draw support from the September private payrolls report from payroll processing firm ADP showing jobs lost. The labor market data seemingly made it more likely that the Fed will cut rates at its October meeting. The tech-heavy Nasdaq Composite Index outperformed, and growth stocks outpaced value. The Russell 2000 Index of small-cap stocks, which tend to benefit more from lower rates, easily outperformed the S&P 500 Index. In Europe, the STOXX Europe 600 Index ended 2.87% higher, reaching record levels. Japan’s stock markets registered mixed performance over the week, with the Nikkei 225 Index gaining 0.91% and the broader TOPIX Index down 1.82%.

Major U.S. stock indexes finished the week lower, driven in part by some hawkish commentary from Federal Reserve officials that seemed to dampen investor optimism around the pace of further interest rate cuts. The Nasdaq Composite fared worst, falling 0.65%, followed by the Russell 2000 Index, which registered its first weekly loss since early August. The S&P 500 Index also fell, while the Dow Jones Industrial Average was little changed. Within the S&P 500, the energy sector rallied, advancing alongside oil prices in response to President Donald Trump’s call for European Union nations to end purchases of Russian oil and gas. Most other sectors declined. The closely watched core personal consumption expenditures (PCE) price index rose 2.9% yoy, in line with July and consensus expectations.

Major U.S. stock indexes rose to record highs during the week; Small-cap stocks rallied, with the Russell 2000 Index gaining 2.16%. The Nasdaq advanced 2.21% for the week, while the S&P 500 Index and Dow Jones Industrial Average added 1.22% and 1.05%, respectively. As expected, the Fed lowered short-term interest rates. Recent weakness in the labor market appeared to be the driver of the central bank’s decision to lower borrowing costs. The Fed’s Summary of Economic Projections indicated that most policymakers expect to lower the central bank’s policy rate by an additional 50 basis points by the end of the year, representing more easing than their last projections made in June. Expectations for rate cuts in 2026 and 2027 also increased.

Most major U.S. stock indexes finished the week higher ahead of the Fed September 16–17 monetary policy meeting, at which the central bank is widely expected to lower short-term interest rates. Enthusiasm surrounding the ongoing AI boom—supported by Oracle’s announcement of a substantial guidance increase amid several large new AI deals—also helped lift major indexes. The Dow, S&P 500, and Nasdaq all notched new record highs during the week, although the Dow and S&P 500 both pulled back modestly in a relatively quiet trading session on Friday. The Russell 2000 Index also advanced, logging its sixth straight week of gains.

Most U.S. equity indexes finished the holiday-shortened week higher. The Nasdaq Composite finished the week 1.14% higher, supported by shares of Apple and Google parent Alphabet, which both rose in the wake of an antitrust ruling that some investors viewed as less severe than expected. Smaller-cap stocks, which can be more sensitive to interest rate movements than larger companies, also advanced for the week. The S&P 500 Index added 0.33%, while the Dow Jones Industrial Average lost 0.32%. The week’s economic calendar brought several reports that painted a bleak picture of the health of the U.S. labor market.

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.

The S&P 500 Index rallied on Friday and ended modestly higher after losing ground for the first four days of the week. Federal Reserve Chair Jerome Powell’s prepared remarks on Friday morning at a symposium in Jackson Hole, Wyoming, appeared to open the door to rate cuts, lifting investor sentiment. The dollar dumped as stocks, bonds, gold, crypto, and oil all ripped higher. US small caps led the charge higher on Friday ripping over 3% higher on the week. The Dow closed at its first new record high since December.