Market Summary
U.S. equities closed out a volatile week on a firmly positive note, with the Dow Jones Industrial Average (DJIA) leading a broad Friday rebound as Treasury yields and oil prices stabilized following Thursday’s sharp selloff. The Dow surged 517.80 points (+0.98%) to settle at 53,277.01, while the S&P 500 added 33.21 points (+0.43%) to close at 7,674.37, and the Nasdaq Composite gained 113.29 points (+0.43%) to finish at 26,201.49. Small- and mid-cap stocks also participated meaningfully, with the Russell 2000 outperforming at +0.9% and the S&P MidCap 400 finishing in line with the S&P 500 at +0.4%.
The rally was broad-based, led by materials (+2.2%) as precious metals extended their August surge, alongside strength in health care (+1.3%), financials (+1.0%), consumer discretionary (+0.9%), and communication services (+0.9%). Utilities (-2.3%) was the lone significant sector decliner. Semiconductors remained a soft spot, with the PHLX Semiconductor Index down 0.5% on the session, capping a difficult week for chip stocks and keeping the information technology sector roughly flat despite strength in software names. Crypto-adjacent financials, including Robinhood and Coinbase, and gold miners were among the standout performers as Bitcoin and gold both extended sharp advances.
Despite Friday’s rebound, the week itself was a losing one for stocks, driven by a pronounced unwind in semiconductor and AI-momentum names, rising oil prices tied to Iran-related geopolitical tension, and elevated Treasury yields. The S&P 500 finished the week down 1.4%, the Nasdaq fell 2.1%, and the DJIA lost 0.9%. Attention now turns to a pivotal week ahead featuring the Fed’s preferred PCE inflation gauge on Wednesday and NVIDIA’s earnings report, which will serve as the next major catalyst for the AI/semiconductor trade.
Market Snapshot
| Index | Level | Change | % Change |
|—|—|—|—|
| DJIA | 53,277.01 | +517.80 | +0.98% |
| Nasdaq Composite | 26,201.49 | +113.29 | +0.43% |
| S&P 500 | 7,674.37 | +33.21 | +0.43% |
Breadth (NYSE): Advancers 1,652 vs. Decliners 1,068 | Volume: 1.16 bln
Breadth (Nasdaq): Advancers 3,147 vs. Decliners 1,781 | Volume: 7.44 bln
WaveFinder Market Breadth:
- Primary Sentiment: Very Bullish (Bulls 1,194 / Bears 761)
- 4% Sentiment: Bullish (Bulls 223 / Bears 49)
- 40 SMA Sentiment: Bearish
- Stocks Above 20-day SMA: 44%
- Stocks Above 40-day SMA: 51.22%
- 9-Month Bulls/Bears: 32 / 5 (25% Bull Follow-Through)
YTD Performance: Russell 2000 +21.6% | S&P MidCap 400 +15.9% | Nasdaq Composite +12.6% | S&P 500 +12.1% | DJIA +10.9%
Sector Performance
Ranked by available session performance data (Briefing.com):
1. Materials +2.2% — led by precious metals rally
2. Health Care +1.3% — Moderna rebound
3. Financials +1.0% — banking and crypto-related strength
4. Consumer Discretionary +0.9% — Tesla, Target, Ross Stores catalysts
5. Communication Services +0.9% — Alphabet, Meta strength
6. Industrials — categorized “Strong” (Briefing Industry Watch); specific % not disclosed
7. Information Technology — approximately flat; software strength offset by semiconductor weakness
8. Energy -0.2% — crude little changed on the day
9. Real Estate — categorized “Weak” (Briefing Industry Watch); specific % not disclosed
10. Utilities -2.3% — only sizable S&P 500 sector decliner
11. Consumer Staples — not specified in today’s data
WaveFinder Volatility (ATR) Context: Health Care (3.60%, flat, P100) and Communication Services (2.42%, rising, P100) showed the highest volatility readings, alongside Energy (3.38%, rising, P89) and Materials (1.92%, flat, P95). Utilities (-2.41%) and Industrials (-0.48%) showed falling/compressed volatility.
Key Earnings & Movers
- Robinhood Markets (HOOD) $108.13, +13.03 (+13.70%) — crypto-related surge as Bitcoin extended its weekly rally
- Coinbase Global (COIN) $186.49, +14.14 (+8.20%) — tracked Bitcoin strength
- Moderna (MRNA) $145.13, +11.81 (+8.86%) — rebounded after giving back part of Wednesday’s cancer-vaccine rally
- Tesla (TSLA) $362.86, +17.73 (+5.14%) — Nevada approved robotaxi services in Clark County
- Target (TGT) $165.42, +7.17 (+4.53%) — extended post-earnings momentum to a multi-year high
- Ross Stores (ROST) $239.04, +10.05 (+4.39%) — beat-and-raise Q2 earnings report
- Freeport-McMoRan (FCX) $76.67, +5.45 (+7.65%) — precious/industrial metals rally
- Newmont Corporation (NEM) $131.58, +3.94 (+3.09%) — gold price surge
- Alphabet (GOOG) $341.75, +3.55 (+1.05%) — lifted communication services
- Meta Platforms (META) $549.90, +4.07 (+0.75%)
- Marvell (MRVL) $237.04, -13.97 (-5.57%) — profit-taking after Wednesday’s near-10% surge on Alphabet custom-silicon deal
- NVIDIA (NVDA) $214.76, -2.09 (-0.96%) — semiconductor weakness ahead of Wednesday’s earnings report
- Boston Beer (SAM) — lower after disclosing CFO Diego Reynoso’s departure (effective Sept. 14); CAO Matt Murphy named interim CFO
Stock Spotlight
Ross Stores (ROST) delivered the session’s most significant earnings-driven catalyst, trading sharply higher after a strong Q2 (July) report released the prior evening. The off-price retailer beat expectations on both the top and bottom lines, with revenue climbing 13.3% year-over-year to $6.26 billion. EPS of $2.66 included an approximately $0.60 benefit from tariff refunds, though results still topped expectations even excluding that benefit. Comparable sales rose a robust 10% — well above the company’s 6-7% plan and marking the second consecutive quarter of double-digit comp growth, with gains again primarily transaction-driven, reflecting new and returning customers as well as increased shopping frequency from existing customers.
Gross margin expanded 625 basis points year-over-year (605 bps excluding tariff benefit yielding 205 bps of underlying expansion), while trends improved sequentially through the quarter, with July delivering the strongest performance despite difficult back-to-school comparisons. Management raised its back-half outlook despite tougher comps, now guiding to FY27 EPS of $8.61-$8.77 (above expectations excluding the tariff benefit) and increasing its FY27 store-opening plan to 115 locations from 110. The results reinforce a broader narrative of resilient, traffic-driven strength in the off-price retail channel even as macro headwinds persist elsewhere.
Bond Market & Treasuries
Treasuries finished the week on a weaker note, giving back a brief midweek boost tied to news that the Treasury Department will increase its buyback allowance for longer-dated securities. Friday’s session saw a steady retreat across tenors, pushing the 10-year yield to just below its 2026 high from late July (4.747%).
Yield Levels (Friday close):
- 2-year: 4.23% (+4 bps day, +6 bps week)
- 3-year: 4.31% (+4 bps day, +6 bps week)
- 5-year: 4.42% (+4 bps day, +6 bps week)
- 10-year: 4.74% (+4 bps day, +4 bps week)
- 30-year: 5.28% (+4 bps day, +1 bp week)
Treasury Secretary Bessent reiterated that his department has multiple tools available to address potential liquidity issues, though the market maintained a “show me” posture. The U.S. Dollar Index slipped 0.1% to 98.81 on the day and fell 0.8% for the week, hovering near its lowest level since mid-May.
Currencies: EUR/USD unchanged at 1.1682 | GBP/USD +0.2% to 1.3652 | USD/JPY unchanged at 159.02 | USD/CNH unchanged at 6.7206
Commodities
- WTI Crude Oil: -1.2% to $87.07/bbl (still up roughly $5/bbl, or ~5.4%, on the week amid Iran-related geopolitical tension)
- Gold: +2.4% to $4,680.10/ozt — extended August advance to nearly $600/oz
- Silver: +2.1% to $69.56/oz
- Copper: +1.9% to $6.59/lb
Overseas Markets
Overnight action was relatively subdued across Asia and Europe, though flash August PMI data broadly impressed. Japan’s flash Manufacturing PMI held at 55.1, marking an eighth consecutive month of expansion, while flash Services PMI came in at 52.3. The eurozone’s flash Manufacturing PMI rose to 52.8 (vs. 51.9 prior), its fastest pace of expansion in over four years, with flash Services PMI at 51.7. Germany’s flash Manufacturing PMI jumped to 54.1 (vs. 52.2 prior) while Services softened to 48.5. France’s flash Manufacturing PMI rose to 51.5, though Services slipped to 48.4. The U.K. posted flash Manufacturing PMI of 51.5 and Services of 52.8, alongside softer-than-expected July Retail Sales (-0.5% m/m).
Elsewhere, South Korea’s exports through the first 20 days of August rose 56% year-over-year, with chip exports nearly tripling. Australia’s flash Manufacturing PMI held at 52.0 with Services at 52.9. India’s flash Manufacturing PMI eased to 52.9 (vs. 53.5 prior, missing the 54.0 estimate) while Services rose to 54.5.
Economic Data
- Flash August S&P Global U.S. Services PMI: 56.8 (vs. 54.6 prior) — notable acceleration
- Flash August S&P Global U.S. Manufacturing PMI: 53.2 (vs. 53.9 prior) — modest deceleration
The stronger services reading helped support Friday’s constructive tone, offsetting a slight moderation in manufacturing activity.
Looking Ahead
Monday (Aug 24): No notable economic data scheduled.
Tuesday (Aug 25):
- June FHFA Housing Price Index (prior +0.3%)
- July S&P Case-Shiller Home Price Index (consensus +1.8%; prior +1.6%)
- July New Home Sales (consensus 620,000; prior 628,000)
- August Consumer Confidence (consensus 90.6; prior 90.8)
- $69 billion 2-year Treasury note auction (results at 13:00 ET)
Wednesday (Aug 26):
- Weekly MBA Mortgage Index (prior -0.4%)
- Q2 GDP – second estimate (consensus +1.5%; prior +1.5%)
- Q2 GDP Deflator – second estimate (consensus 6.3%; prior 6.3%)
- July Personal Income (consensus +0.2%; prior +0.2%)
- July Personal Spending (consensus +0.2%; prior +0.3%)
- July PCE Price Index (consensus +0.1%; prior -0.1%)
- NVIDIA (NVDA) earnings report after the close — will serve as the centerpiece event of the week given the sharp swings across semiconductor and AI-related stocks
Markets will be closely watching the PCE inflation data as the Fed’s preferred gauge, alongside a busy retail and software earnings calendar, with NVIDIA’s report standing out as the pivotal catalyst for sentiment heading into month-end.