Tariffs, Tech & Optimism Fuel Market Rally

Week Ending August 8, 2025

 Stocks rebounded last week as investor optimism for a potential September rate cut and strong Q2 corporate results overcame the rollout of fresh tariffs.

 The Standard & Poor’s 500 Index rose 2.43%, while the Nasdaq Composite Index gained 3.87%. The Dow Jones Industrial Average added 1.35%. The MSCI EAFE Index, which tracks developed overseas stock markets, increased 2.77%.

 Market Overview

Weekly Market Performance (August 4 – 8)

•  S&P 500: +2.43%
•  Nasdaq Composite: +3.87%
•  Dow Jones Industrial Average: +1.35%
• MSCI EAFE (International Developed Markets): +2.77%
•  S&P/TSX Composite Index (Canada): +2.92%

 Stocks Gyrate

Markets started the week strong, with major averages gaining between 1.3% and 2% on Monday — their best single-day performance since May. Weaker-than-expected July jobs data fueled hopes for a Federal Reserve rate move in September.

 Midweek momentum continued after the White House confirmed a $500 billion investment commitment from a mega-cap tech company toward domestic manufacturing. The announcement of new tariffs on India was met with little market reaction.

 On Thursday, previously announced White House tariffs officially took effect. Markets rose in early trading but softened as the day progressed.

 By Friday, both the S&P 500 and Dow were back in positive territory, capping a strong week. The Nasdaq closed at a new record high.

 Canada & the TSX

The S&P/TSX Composite Index jumped 2.92%, its biggest weekly gain since September 2024, and reached record highs midweek.

 Shopify surged more than 20% on strong earnings, becoming Canada’s most valuable publicly traded company.

 Gains were broad-based, with financials, energy, and technology all advancing.

 Sun Life Financial posted strong Q2 profits, driven by Asian market growth.

 Saputo underperformed, missing analyst expectations.

 The Ivey PMI signaled Canada’s fastest pace of economic activity in over a year, reinforcing optimism despite global trade uncertainties.

 Canadian market strength was also supported by stable oil prices and the global risk-on sentiment tied to potential U.S. monetary easing.

 Economy Watch

Services account for roughly 70% of the U.S. economy, making the Institute for Supply Management’s Services Index closely watched.

 Tuesday’s report showed services growth below expectations, sparking some concern.

 However, investor focus quickly shifted to corporate earnings, with 122 S&P 500 companies reporting last week — many delivering better-than-expected results.

 Key Economic Reports: Week Ahead (August 11–15, 2025)

Tuesday, August 12

• NFIB Small Business Optimism Index
•  Consumer Price Index (CPI)
•  Federal Budget

Wednesday, August 13

• Atlanta Fed President Raphael Bostic speaks
•  Chicago Fed President Austan Goolsbee speaks

Thursday, August 14

•  Weekly Jobless Claims
•  Producer Price Index (PPI)
•  Fed Balance Sheet
•  Richmond Fed President Tom Barkin speaks

Friday, August 15

•  Retail Sales
•  Industrial Production
•  Import & Export Prices
•  Business Inventories
•  Consumer Sentiment

 Corporate Earnings: This Week

Wednesday, August 13

• Cisco Systems, Inc. (CSCO)

Thursday, August 14

•  Applied Materials, Inc. (AMAT)
•  Deere & Company (DE)
•  NetEase, Inc. (NTES)

“We should all do something to right the wrongs that we see and not just complain about them.”
– Jacqueline Kennedy Onassis

What is worn by the foot and often bought by the yard?

^{Last Week's Riddle: They can run side by side for thousands of miles; they are made of steel. While they constantly touch the ground, they seldom meet or touch each other. What are they?
Answer: Railroad tracks.}

Joanne at Othello Caves just outside of Hope, B.C.

Footnotes and Sources

1. WSJ.com, August 8, 2025
2. Investing.com, August 8, 2025  
3. MarketWatch.com, August 4, 2025
4. CNBC.com, August 5, 2025
5. CNBC.com, August 6, 2025
6. WSJ.com, August 7, 2025
7. WSJ.com, August 8, 2025
8. WSJ.com, August 5, 2025
9. Advantage.FactSet.com, August 1, 2025
10. IRS.gov, April 18, 2024 
11. Healthline, March 19, 2025

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