Weekly Market Recap: September 1 – 7, 2025
US markets held up last week even though the economic news was mixed. Tech stocks led the way, while energy and global stocks lagged. Oil prices fell sharply, while bonds moved up slightly as traders looked for safety.
Equity Markets
- S&P500: rose 0.3%, showing that US stocks were resilient despite soft economic signals.
- NAS100: climbed 1.1%, bouncing back after a small dip the week before. Tech stocks were strong again.
- US30: fell 0.3%, pulled down by energy and sectors sensitive to interest rates.
- Global Stocks (MSCI EAFE): down 0.8%, continuing to lag as Europe and Asia struggled.
- 10-Year US Treasury Yield: dipped slightly to 4.09%, as softer data lowered expectations for rate hikes.
- Oil: tumbled 3% to $62.06, with fears of slower growth outweighing OPEC’s comments.
- Bonds: gained 0.6%, reflecting a mild move into safer assets.
Overall, US markets stayed steady, while global equities struggled and oil dropped.
Macroeconomics
The biggest story of the week was jobs. US payrolls added only 22,000 new jobs in August, far below the expected 75,000. Unemployment ticked up to 4.3%, the highest in this cycle. This weaker jobs report fueled bets that the Fed will pause any rate hikes, even as inflation remains steady with Core PCE at 0.3% month-over-month.
Other economic highlights:
- Services vs. Manufacturing: ISM Services jumped to 52, returning to growth, while ISM Manufacturing stayed below 50 but improved to 48.7. This shows that while factories are still struggling, the service sector is picking up.
- US GDP: Q2 was revised up to 3.3%, showing that the economy still has momentum.
- Eurozone Inflation: ticked slightly higher to 2.1%, meaning the ECB is unlikely to tighten policy soon.
- Canada GDP: shrank 0.4%, showing the economy is weaker than expected.
- Australia: GDP rose 0.6% with a big trade surplus of A$7.31B, supporting growth.
- China: Manufacturing PMI returned to expansion at 50.5, stabilizing Asia markets.
Crypto Markets
Crypto had a mixed week.
- Bitcoin (BTCUSD): climbed 2.2% to $111,130, recovering from recent weakness.
- Ethereum (ETHUSD): fell nearly 2% to $4,305, lagging Bitcoin but still linked to tech stocks.
Earnings
It was a quiet week for earnings. Traders focused more on economic data and the broader market outlook as Q3 comes to a close.
Global Markets
- Canada and Australia showed weaker labor and trade numbers, despite some positive GDP surprises.
- Europe continues to struggle with weak sentiment and sticky inflation.
- Japan’s unemployment rose slightly to 7.1%.
- UK retail sales bounced back, up 0.6% month-over-month.
Conclusion
Markets held steady last week despite weaker jobs and soft inflation. Tech led the gains, global stocks lagged, and crypto showed signs of recovery. The weaker jobs report reinforces the idea of a “Fed pause,” keeping traders cautious but steady.
Next week, traders will be watching CPI, PPI, and central bank updates closely. These could set the direction for the weeks ahead.
Disclaimer: This content is for informational purposes only and is not financial advice.
