Stocks finished mixed but resilient as Chair Powell used Jackson Hole to nudge the door open to a September rate cut. That helped flip sentiment on Friday, sending the Dow to a record close and leaving the S&P modestly higher on the week while the Nasdaq slipped as mega-cap tech lagged. Yields eased across the curve, volatility retreated, and cyclicals—especially energy, industrials, and real estate—led. Housing data surprised to the upside, while jobless claims ticked up, reinforcing the “cooling-but-not-cracking” narrative. Globally, Europe advanced and China’s CSI 300 rallied. The coming week brings PCE inflation, GDP (2nd estimate), and a heavy earnings slate headlined by Nvidia.
Weekly Index Performance
| Index | Last Close (Aug 22) | Weekly Change |
| S&P 500 | 6,466.91 | +0.3% |
| Nasdaq Composite | 21,496.53 | -0.6% |
| Dow Jones Industrial Average | 45,631.74 | +1.5% |
Key Drivers of Last Week’s Rally
Powell at Jackson Hole: Signaled risks have shifted and the Fed is open to cuts if labor softens further—markets heard “sooner rather than later,” sparking a broad Friday rally and easing in yields.
Rates & vols reset: 2‑yr yield fell ~5 bps to 3.70%; 10‑yr slid ~6 bps to 4.25%; the VIX finished in the mid‑teens (~14.22), down versus last Friday.
Policy watch — Intel: The U.S. government agreed to take a ~10% equity stake in Intel, underscoring a more active industrial policy; semis were mixed into week-end.
Earnings dispersion: Rate-sensitive pockets and select growth names popped (e.g., housing and travel), while some software names lagged on guidance. Notables (8/22 session): Enphase +10.4%, Builders FirstSource +8.4%, Mohawk +7.3%; Intuit −5%, Workday −2.8%.
Macro data: Existing home sales +2.0% m/m in July to a 4.01mn SAAR; initial jobless claims rose to 235k—consistent with gradual cooling.
Sector Highlights
Leaders:
- Energy +2.85% (oil firmer; cyclicals bid)
- Real Estate +2.28% (yields lower aided REITs)
- Industrials +1.79% / Materials +2.10% (rate relief + cyclical tone)
Laggards:
- Information Technology −1.49% (mega-cap digestion despite AI optimism)
- Communication Services −0.80% (select large-cap weakness)
- Consumer Staples +0.23% (defensives trailed cyclicals)
Notables (8/22 session): Enphase +10.4%, Builders FirstSource +8.4%, Mohawk +7.3%; Intuit −5%, Workday −2.8%.
Global Market Snapshot
STOXX 600: +1.4% (third straight weekly gain)
MSCI ACWI (proxy): ~+0.8%
CSI 300 (China): +2.1% (policy-support optimism)
What to Watch This Week
Mon 8/25: New Home Sales (Jul)
Tue 8/26: Durable Goods Orders (Jul); Case‑Shiller HPI; Conference Board Consumer Confidence
Thu 8/28: GDP (Q2, 2nd est.); Weekly Jobless Claims; Pending Home Sales (Jul)
Fri 8/29: Personal Income/Spending; PCE/Core PCE (Jul); Advance Goods Trade Balance; Univ. of Michigan (final Aug)
Earnings: Nvidia (marquee), plus CrowdStrike, Snowflake, Alibaba, Best Buy, Dollar General, Ulta
