Everything to Know about Macro and Markets
Stocks closed the week mixed, with the Dow Jones Industrial Average (DJIA) down 0.32%, losing ground due to macroeconomic concerns. Meanwhile, tech megacaps’ outperformance lifted the S&P 500 (SPX) and the Nasdaq-100 (NDX) to 0.33% and 1.01% weekly gains, with the large-tech benchmark especially lifted by a surge in Broadcom (AVGO) and Alphabet (GOOGL).
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Bad News is Bad News Again
After a shaky start to the holiday-shortened week on Tuesday and a new all-time high on Thursday, stocks closed Friday on a weak note after the August jobs report confirmed that the labor market is visibly slowing down.
The economy added just 22,000 jobs last month – less than a third of what was expected – and the unemployment rate rose from 4.2% to 4.3%. This added to July’s below-trend growth and a stark revision for June that moved job growth into negative territory, marking three months of slowing job growth and showing the U.S. job market is weakening. The Federal Reserve apparently saw it coming, as outlined in Powell’s Jackson Hole speech. However, the data confirming that economic weakness now demands a rate reduction despite still elevated inflation did little to cheer the markets up.
A September rate cut was already fully priced in before the jobs report release, so the weak data did not help sentiment – instead, it raised worries that the economy may be weaker than seen on the surface. Other signs of economic weakness – such as the sixth straight month of manufacturing contraction and the Fed’s Beige Book report pointing to below-average GDP growth ahead – added fuel to the fire, sparking speculation about a potential “jumbo cut” of 50 bps. With a rate cut impending anyway, reasons for the Fed move came to the forefront – and with those being negative (weak economy) rather than positive (lower inflation), stocks wobbled on fears for an earnings hit.
The Federal Reserve has two mandates – maximum employment and stable prices. After a not-so-surprising revelation about the first, investors are about to receive a wide set of data on the second mandate’s trends, with both consumer price index (CPI) and producer price index (PPI) inflation figures coming out this week. This incoming inflation data will be closely scrutinized for signs of stubborn price pressures or easing trends, which could determine whether policymakers proceed with a modest rate cut or opt for more aggressive easing to support the economy.
Stocks That Made the News
▣ Broadcom (AVGO) surged post-earnings, driving the broad tech sector higher. The company reported better-than-expected quarterly results and raised revenue guidance notably above consensus estimates, highlighting continued rapid growth in AI semiconductor sales and projecting “significantly improved” AI revenue growth in fiscal 2026. The chipmaker also unveiled a blockbuster $10 billion AI chip order from a new customer, whom analysts at JPMorgan (JPM), Bernstein, and Morgan Stanley (MS) believe to be OpenAI. The deal solidifies AVGO’s role as a leading custom chip provider amid tech leaders’ push to diversify beyond Nvidia. Adding to investor optimism over Broadcom’s stable upward trajectory, CEO Hock Tan – who has led the chipmaker for nearly two decades and steered it to the center of the AI boom – confirmed he will remain in his role for at least five more years.
▣ Advanced Micro Devices (AMD) lost over 10% on the week after Seaport Research downgraded the stock from “Buy” to “Hold,” citing concerns about slowing demand for its AI accelerators and noting that elevated expectations could be difficult to meet going forward. Speculation that OpenAI – which previously made its custom chips exclusively at Nvidia (NVDA) and AMD – has logged a massive order with Broadcom also dealt a blow. AMD would be especially hurt by OpenAI choosing Broadcom as a supplier, as it hasn’t been able to gain meaningful ground against Nvidia in AI chip trade and can’t afford another serious competitor.
▣ Alphabet (GOOGL) soared over 12% last week, closing at a record high, after Judge Amit Mehta ruled it would not be forced to sell its Chrome browser business. The company will still be allowed to pay partners for default browser placement, though this decision may be revisited if competition is not substantially restored. The federal judge did impose some remedies, such as requiring Google to share portions of search data with rivals and stop tying Android app bundles to Play Store access – but these were far less harsh than feared. Mehta wrote that the government “overreached in seeking forced divestiture of key assets.” Beyond being a win for Alphabet’s Google, the ruling could also serve as a blueprint for lawsuits against other tech majors like Meta Platforms (META), Apple (AAPL), and Amazon (AMZN).
▣ Robinhood Markets (HOOD), AppLovin Corp. (APP), and EMCOR Group (EME) jumped in late trading after S&P Dow Jones Indices announced their addition to the S&P 500 on September 22. They will replace MarketAxess Holdings (MKTX), Caesars Entertainment (CZR), and Enphase Energy (ENPH), who are moving to the S&P SmallCap 600 Index.
▣ Salesforce (CRM) dropped after the company posted a solid quarter with beats across the board, but disappointed with guidance in line with consensus. However, shares recovered most losses later as analysts maintained “Buy” ratings and investors noted 120% YoY growth in AI and Data Cloud revenues, strong new bookings, and customer expansion.
▣ Lululemon Athletica (LULU) was the worst performer in the S&P 500 last week, notching a loss of nearly 19%. The stock plunged after reporting lower-than-expected comparable store sales on soft U.S. demand and cutting full-year earnings guidance, citing a $240 million tariff hit to profits.
Upcoming Earnings and Dividend Announcements
The Q2 2025 earnings season is over, but several notable releases are still scheduled for this week. The companies in focus are Synopsys (SNPS), Rubrik (RBRK), Chewy (CHWY), Adobe (ADBE), and Kroger (KR).
Ex-dividend dates are coming this week for Mosaic (MOS), Alphabet (GOOGL), Becton Dickinson (BDX), HP (HPQ), Elevance Health (ELV), Occidental Petroleum (OXY), Nvidia (NVDA), Dick’s Sporting Goods (DKS), Automatic Data Processing (ADP), and other dividend-paying firms.
For additional exclusive market insights and content from TipRanks Macro & Markets research analyst Yulia Vaiman, click here.