Aug 4–10, 2025

Stocks

Market movements:
The week opened with selling and ended unevenly. S&P 500 (-2.4% w/w), Nasdaq Composite (-2.2% w/w) and Dow Jones Industrial Average (-2.9% w/w) finished lower. Profit-taking followed a strong summer rally. Weaker company commentary amplified the pullback. Overall, selling concentrated in cyclicals and small caps.

Sector and single-name drivers:
Consumer discretionary names led declines after guidance cuts from a major apparel retailer. Energy names held up better on oil strength in parts of the week. Technology fell but saw buying at lower levels. Thus the decline reflected selective de-risking rather than broad systemic stress.

Fixed-income:
The 10-year Treasury (~4% area) moved lower as investors sought safer assets. Lower yields mirrored growth concerns and repositioning ahead of data. Credit spreads widened slightly in weaker sectors, indicating selective risk aversion.

Precious metals, industrial metals

Gold & silver:
Gold (+~1–2% w/w) rose amid safe-haven demand during equity weakness. Silver (+~2–4% w/w) also gained but remained more volatile. ETF flows helped sustain the metals move. In addition, lower yields supported bullion prices.

Industrial metals:
Base metals were sensitive to mixed manufacturing prints. Copper (slight down to flat w/w) pressured by weaker demand indicators. Aluminium and nickel experienced short selling on growth worries. Thus base metals lagged precious metals and exhibited directional hesitance.

Crypto Asset

Bitcoin:
Bitcoin (BTC, flat to modest down w/w) initially fell with equities. Later, BTC found bids as yields eased, which limited the drawdown. The token finished the week in consolidation after the mid-week pullback.

Ethereum:
Ethereum (ETH, slight down to flat w/w) tracked BTC’s tone. Staking inflows and developer updates provided episodic support. Yet ETH’s move was modest overall.

XRP:
XRP (flat w/w) traded in a narrow range. Volume was muted relative to BTC and ETH. Traders treated XRP as tactical exposure during the pullback.

Solana:
Solana (SOL, mixed w/w) reacted to project news but lacked broad buying. Price swings were idiosyncratic and short-lived.

Cardano:
Cardano (ADA, flat to modest down w/w) edged lower with risk appetite. Developer announcements were not strong enough to offset macro headwinds.

Crypto market context:
Macro forces dominated token flows. Risk-off moves pressured most tokens early. Later, lower yields capped losses. Therefore crypto traded tightly around macro narratives.

US economic data

Growth and manufacturing:
Manufacturing indicators softened in places. Regional surveys showed mixed demand signals. That pattern suggested slower but not collapsing activity. Market participants remained cautious.

Labor & inflation:
Early labour metrics showed slight loosening in some internals. Inflation components were mixed, with energy and food adding headline variability. Policymakers stressed data dependency in communications.

Market reaction:
Data flows pushed investors to reduce exposures early in the week. However, tactical buyers stepped in on dips. Thus the week ended calmer than mid-week angst would have suggested.

Outlook for the coming week

Data focus:
Next week’s retail sales and PMI prints will be important. Also track consumer confidence and export metrics. These will help determine if the pullback was a pause or the start of a larger correction.

Earnings and sector updates:
Retail and industrial reports are due and will be closely watched. Positive retail figures would ease growth worries. Weak results could deepen risk-off moves.

Tactical view:
After the correction, favour selective buying over blanket exposure. Focus on high-quality growth with durable cash flows. Maintain exposure to hedges like gold and higher-grade bonds.