Aug 18–24, 2025

Stocks

Market movements:
U.S. stocks advanced across most measures during the week. The S&P 500 (+0.9% w/w) rose. The Nasdaq Composite (+0.8% w/w) also climbed. The Dow Jones Industrial Average (+1.7% w/w) led on stronger industrial and cyclical reads. Investors reacted to softer inflation signals and a steady flow of corporate earnings. As a result, confidence in a later-year policy easing increased.

Sector and single-name drivers:
Earnings season offered both surprises and caution. Tech names showed resilience after several beats. Semiconductor suppliers gained on AI optimism. Conversely, a few consumer names disappointed and trimmed guidance. Nvidia (+~6% w/w) held firm. Consumer staples and utilities underperformed as money rotated into growth. The net effect was a market that favored earnings-driven winners.

Fixed-income:
Yields were relatively stable but with intraday swings. The 10-year Treasury (~4% area) moved in a tight band. Traders focused on the shape of the curve and term premia. Lower real yields helped equities on select days. Meanwhile, credit spreads remained contained, indicating limited stress in corporate funding.

Precious metals, industrial metals

Precious-metals performance:
Precious metals started to gain traction. Gold (+~1–1.5% w/w) saw inflows as a hedge against policy uncertainty. Silver (+~2–3% w/w) followed, albeit with more volatility. The metals rally reflected a blend of macro hedging and technical buying.

Industrial metals:
Industrial metals posted mixed results. Copper (slightly up w/w) reacted to data showing steadier manufacturing activity in some regions. Supply-side stories affected aluminium and nickel intermittently. Overall, industrials were more sensitive to growth signals than precious metals.

Crypto Asset

Bitcoin:
Bitcoin (BTC, flat to modestly up w/w) traded in a measured range. Prices reflected a cautious appetite for risk. Macro cues and ETF flows offered marginal support. However, capital rotations favored equities more clearly than crypto in this week.

Ethereum:
Ethereum (ETH, flat to modestly up w/w) followed Bitcoin’s tone but also registered interest tied to staking and Layer-2 updates. Developer activity remained constructive. Still, ETH’s movement was incremental rather than dramatic.

XRP:
XRP (flat w/w) saw periodic volume spikes on isolated news. The token did not lead market moves. Market participants treated XRP as a selective exposure rather than a broad market barometer.

Solana:
Solana (SOL, mixed w/w) experienced sporadic rallies on project announcements. The overall trend was muted. On-chain metrics indicated pockets of developer activity but also short-term speculative flows.

Cardano:
Cardano (ADA, small gains w/w) advanced modestly. Incremental protocol upgrades and developer announcements kept attention steady. ADA’s changes reflected the slow, organic growth typical for the chain.

US economic data

Inflation and consumer:
Inflation signals were mixed but leaned toward slower price growth in some categories. Headline inflation showed gradual cooling in select CPI components. This softer tone nudged markets toward expecting eventual Fed accommodation, though policymakers emphasized data dependency.

Labour and jobs:
Labour indicators showed continued resilience, but some internals hinted at cooling. Average hourly earnings and participation measures received scrutiny. Markets took the mixed messages as reason to remain flexible in positioning ahead of the next major data prints.

Market reaction:
Given these data, bond yields broadly eased during key windows. That relief supported equity multiples. Nonetheless, investors recognized that inflation remains above target in many measures. Hence, policy direction remained conditional.

Outlook for the coming week

Macro calendar:
Important releases for the coming week include retail sales and industrial production. Markets will also parse housing reports and the weekly jobless claims data. Each print could tip the balance between risk-on and risk-off.

Earnings and sector focus:
The upcoming corporate slate includes logistics, consumer staples, and housing names. These reports will provide real-time reads on consumption, shipping demand and housing momentum. Positive beats would help risk sentiment. Disappointments would likely trigger rotations back into defensive sectors.

Tactical considerations:
In the short term, favor selective exposure to AI and large-cap growth if macro data remains benign. At the same time, maintain hedges such as gold and modest cash buffers. Volatility could increase at the next major CPI or jobs release, so plan sizing accordingly.