Stocks closed the week firmly in the green after Friday’s rally flipped the previous days’ losses to gains. The Dow Jones Industrial Average (DJIA) surged 1.53%, notching a fresh record high, while the S&P 500 (SPX) logged in a 0.27% weekly gain after its best day since May. The tech large-cap benchmark Nasdaq-100 (NDX) was down 0.90% for the week, despite Friday’s surge, as the previous five-day sell-off in AI names took a toll.
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The S&P 500 logged a five-day losing streak through Thursday, ripe with wild intraday swings amid surging investor anxiety. Despite an outstanding earnings season, the AI-driven rally came under fire again as leading tech stocks’ lofty valuations came into focus. Broad tech sector slid, led by megacaps and semiconductor names, as markets wavered awaiting the crucial speech by Fed Chair Jerome Powell at Jackson Hole – viewed by many as the “make or break” moment for the rally.
Throughout the down streak, headlines were flashing a “rotation” narrative, with investors taking interest in defensive trades along profitable – and slower-growing – names trading at more sustainable multiples, driving DJIA’s outperformance over that period. However, some analysts warned that it is too early to call a change, because the traditional anti-bull sign – outperformance of consumer staples – was visibly missing over the red market days, while the VIX index remained at historically low levels. These and other signals prompted Goldman Sachs to advise buying the dip in momentum stocks.
Friday has shown that these bullish voices were right, as investors rushed in to buy the dip – even where a dip had not meaningfully occurred – after Powell signaled a potential change in monetary policy. While the Fed Chair didn’t commit to rate cuts outright, noting that “short-term risks to inflation are on the upside,” he acknowledged that the balance of risks was shifting in a way that “may warrant” less restrictive monetary policy. Stock markets interpreted this as a green light to keep the rally going.
Three Economic Reports
Here are three key economic reports that could affect your portfolio this week. For a full listing of additional economic reports, check out the TipRanks Economic Calendar.
» Q2 2025 GDP Growth Annualized (second estimate) – Thursday, 08/28 – This report will provide a refined insight into the economy’s growth in the second quarter, incorporating additional data that wasn’t available for the advance estimate. The advance estimate showed that real GDP expanded at a 3% annualized rate. While the second estimate is expected to remain unchanged, revisions are possible as more complete data is factored in.
» July Core Personal Consumption Expenditures (Core PCE) – Friday, 08/29 – This report tracks changes in inflation based on consumer spending, excluding volatile items such as food and energy. The Federal Reserve considers the annualized Core PCE Price Index its preferred inflation gauge.
» August Michigan Consumer Sentiment Index and UoM 5-year Consumer Inflation Expectations (preliminary readings) – Friday, 08/29 – These reports summarize consumer confidence and long-term inflation expectations in the United States. Consumer confidence impacts spending, which accounts for roughly 70% of U.S. GDP. The inflation expectations component is closely monitored by policymakers and is factored into the Federal Reserve’s Index of Inflation Expectations.
For more exclusive market insights and content from TipRanks Macro & Markets research analyst Yulia Vaiman, click here.