Weekly Market Recap: August 18-24, 2025
Global financial markets were steady last week, supported by a softer message from the Federal Reserve and stronger US housing data. While technology stocks weakened, industrials and energy helped balance the performance. Commodities and crypto also delivered mixed signals.
Here is what moved the markets last week.
Equity Markets
- Dow Jones (US30): 45,632 (+1.5%) – industrial stocks led gains.
- S&P500 (SPX500): 6,467 (+0.3%) – modest rise after recent highs.
- Nasdaq (NAS100): 21,497 (–0.6%) – technology cooled after strong momentum.
- MSCI EAFE: 2,729 (–0.4%) – European and Asian markets underperformed.
- 10-Year U.S. Treasury Yield: 4.26% (–1 bp) – little change in bond markets.
- UKOIL (Brent Crude): $63.81 (+1.6%) – recovered after recent declines.
- XAUUSD (Gold): $2,031 (+0.8%) – edged higher as investors looked for safety.
Overall, equities held firm. Industrials outperformed, while technology lagged slightly. Oil prices bounced back, and gold continued to climb gradually.
Macroeconomics
The main focus was on central banks and inflation data.
- Federal Reserve: The FOMC minutes showed division among policymakers. Some remain worried about inflation, while others are more cautious about overtightening. At the Jackson Hole conference, Chair Jerome Powell highlighted progress on disinflation and kept a “data-dependent” stance, leaving the door open for a possible rate cut in September.
- Canada: Inflation slowed to 1.7% year-over-year, below the Bank of Canada’s target.
- United Kingdom: Inflation rose slightly to 3.8%, keeping pressure on the Bank of England.
- Japan: Inflation eased to 3.1%, but the country’s trade balance shifted into a ¥117.5B deficit.
- Germany: Manufacturing PMI improved to 49.9, just below the growth threshold.
- United States housing: Existing home sales and housing starts came in stronger than expected, showing resilience despite higher interest rates.
Cryptocurrency Market
The crypto market was mixed:
- Bitcoin (BTCUSD): Fell –3.4%, closing below $120,000.
- Ethereum (ETHUSD): Gained +6.8%, briefly touching an all-time high before pulling back.
- Market funding rates stayed balanced, showing some cooling in leverage after recent moves.
Global Developments
- UK PMIs: Services PMI surprised on the upside at 53.6, pointing to continued growth.
- Germany: Business sentiment remained subdued despite improvement in factory activity.
- China: No new data was released, but investors are still digesting weaker retail and industrial figures from the prior week.
Conclusion
Markets stayed firm despite weakness in tech stocks. Oil prices bounced back, gold moved slightly higher, and crypto markets split, with Bitcoin down and Ethereum stronger. The Federal Reserve’s softer tone lifted sentiment, but the real test comes in September with upcoming US inflation reports and labor market data that will shape the timing of the next Fed rate cut.