Anna's Markets Recap

_{Just facts, you think for yourself}

Saturday, 5:27 AM

August 23, 2025

Good morning news friend! Here is a quick recap of what happened in the markets this week. 📰🌟

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Some of the world's best investors don't work on Wall Street. They work in Washington.

Last week, seven members of Congress reported over 150 stock trades. One senator's spouse bought up shares in big tech. Another, who sits on the powerful House Financial Services Committee, had his portfolio manager make over 100 moves.

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We've compiled all their latest disclosures in one simple report. No opinions, just the data on who's buying and selling what.

If you want to see where the smart money might be moving, this is a good place to start

Click here to view Full Report 

What Moved Markets Last Week

The market began the week in a quiet state. Investors showed caution ahead of the Federal Reserve’s annual meeting. The S&P 500 drifted from 6,449 down to 6,370 by Thursday. The Nasdaq Composite fell from 21,629 to 21,100 in the same period. Trading volumes were low.

Economic data created an uncertain picture. The University of Michigan's consumer sentiment index for August fell to 58.6, its first drop in four months. Consumers expressed growing concern about inflation. Year-ahead inflation expectations rose from 4.5% to 4.9%. This followed reports of rising wholesale inflation from the prior week.

The market’s direction changed on Friday, August 22. Federal Reserve Chair Jerome Powell indicated the central bank could cut interest rates in September. The news released pent-up market demand. The Dow Jones Industrial Average climbed 850 points to a record 45,631. The S&P 500 rose 1.5%, and the Nasdaq Composite gained 1.9%, erasing most of its weekly losses.

The 10-year U.S. Treasury yield fell from 4.32% to 4.26% after Powell’s comments. Traders priced in an 84% chance of a rate cut in September. Gold prices held steady around $3,371 per ounce. Crude oil rose to $63.77 per barrel, as the prospect of lower rates improved the outlook for economic growth.

Tech and Growth

The technology sector saw varied performance. Companies with clear progress in artificial intelligence led the gains. Future outlook, not just past performance, drove stock prices.

Alphabet’s stock surged 3.5% to a new high of $206.72. The move followed news that Apple was in talks to license Google's Gemini AI for its Siri platform. This served as a major endorsement of Google's AI technology. Amazon’s stock also climbed 3.1% after it announced a partnership with Hertz to sell cars online, opening a new market.

Tesla’s stock rose 6.19% on Friday to close at $339.91. The company faced news of class-action lawsuits early in the week. The stock recovered as optimism about lower interest rates outweighed the legal concerns. As a high-growth company, Tesla’s valuation benefits from a lower-rate environment.

Apple’s stock was caught between competing stories. The potential Google partnership was positive. However, the company faced multiple class-action lawsuits and an investigation into its officers. These legal risks tempered investor optimism.

Walmart’s stock fell 4.5% on Thursday. The drop came after the company reported strong second-quarter results. U.S. sales grew 4.6% and e-commerce jumped 25%. Investors ignored these results. They focused on CEO Doug McMillon’s warning that rising tariff costs could force the company to raise prices, threatening future profit margins.

Banks and Financials

The financial sector rallied on Friday. The move was a direct response to the Federal Reserve’s signal on interest rates. The sector’s performance reflected broad economic sentiment, as there was little company-specific news.

Lower interest rates help banks by reducing the risk of loan defaults. They can also spur new borrowing by consumers and businesses. This outlook boosted shares across the sector. Bank of America jumped 2.58%, Visa rose 1.82%, and Mastercard gained 0.73%.

The rally occurred without major news from the companies themselves. JPMorgan Chase announced routine changes to some of its smaller funds. Bank of America scheduled its 2025 Investor Day. The lack of other drivers shows the rally was a vote of confidence in a healthier economic cycle supported by the Fed.

Consumer Goods and Healthcare

Defensive sectors showed a split performance. Companies with new products and drug approvals outperformed. Investors favored clear growth stories over companies facing cost pressures.

AbbVie had a strong week. The company completed its acquisition of Capstan Therapeutics, adding a new therapy platform. It also announced positive results from a Phase 3 trial for its drug RINVOQ. This news created positive momentum for the stock. Eli Lilly continued its rise, driven by strong sales of its diabetes and weight-loss drugs.

Johnson & Johnson announced a $2 billion investment to expand its U.S. manufacturing. Despite this long-term investment, its stock traded slightly down for the week. UnitedHealth Group’s stock rose, carrying momentum from a stable full-year outlook and news that Berkshire Hathaway had taken a stake in the company.

Energy and Industrials

Energy and industrial companies reacted to both economic news and their own results. Home Depot’s stock had a strong week, lifted by two separate catalysts.

Home Depot’s stock first rose over 3% on Tuesday after the company reported strong second-quarter earnings. It received a second boost on Friday from Powell’s speech. Lower interest rates could reduce mortgage costs, stimulating home buying and renovation projects, which directly benefits Home Depot’s business.

Exxon Mobil’s stock rose to near $111 per share. Its performance tracked the price of crude oil, which climbed on the improved economic outlook. The company’s strong financial position, including $5.4 billion in second-quarter free cash flow, allows it to benefit from higher energy prices.

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Baked with love,

Anna Eisenberg ❤️