Profit-Taking Ahead of the Holiday Weekend

Week Ending August 29, 2025

Markets eased slightly last week as investors weighed mixed economic data and opted to take profits before the Labor Day long weekend.

The Standard & Poor’s 500 Index dipped 0.10%, the Nasdaq Composite Index slipped 0.19%, and the Dow Jones Industrial Average declined 0.19%. Overseas, the MSCI EAFE Index, which tracks developed international markets, dropped 1.53%. Closer to home, the S&P/TSX Composite Index eased 0.72%.

Market Overview

Weekly Market Performance (August 25–29)

• S&P 500: –0.10%
• Nasdaq Composite: –0.19%
• Dow Jones Industrial Average: –0.19%
• MSCI EAFE (International Developed Markets): –1.53%
• S&P/TSX Composite Index (Canada): –0.72%

U.S. Markets: Rise, Then Retreat

Stocks started the week higher, as markets continued to digest Fed Chair Jerome Powell’s comments from the Federal Reserve’s annual symposium.

Midweek attention turned to the Q2 earnings report from a leading artificial intelligence chipmaker. Results initially met a mixed reception, but by Thursday, shares surged, helping the S&P 500 close above 6,500 for the first time.

On Friday, the Fed’s preferred inflation gauge — the Personal Consumption Expenditures (PCE) Index — came in right on target. Despite the encouraging data, investors opted to lock in gains before the long weekend, sending markets modestly lower to close out the week.

Canada & the TSX

The S&P/TSX Composite Index slipped 0.72%, giving back some of its recent strength.

•  Energy and financial stocks weighed on performance.
• Technology names held relatively firm, tracking U.S. momentum.
•  Steady oil prices and optimism around potential U.S. rate cuts continue to provide underlying support for Canadian equities.

Economy Watch

Economic signals were mixed:

• Stronger growth: Revised GDP data showed Q2 U.S. growth was stronger than initially reported.
• Soft spots: Orders for durable goods fell, and the trade deficit widened.
• Inflation steady: July’s PCE report showed inflation running at 2.9% annually, in line with expectations but still above the Fed’s target.

Investors remain laser-focused on economic data and Fed commentary ahead of the September 17th Fed meeting, where interest rate decisions will take center stage.

Key Economic Reports: Week Ahead (September 1–5, 2025)

Monday, September 1

• U.S. Markets Closed (Labor Day)

Tuesday, September 2

• ISM Manufacturing
• Construction Spending

Wednesday, September 3

• Job Openings
• Factory Orders
• Fed Beige Book
• Auto Sales
• Minneapolis Fed President Neel Kashkari speaks

Thursday, September 4

• ADP Employment Report
• Weekly Jobless Claims
• Productivity
• Trade Deficit
• ISM Services
• Fed speakers: John Williams, Austan Goolsbee

Friday, September 5

• Jobs Report

Corporate Earnings: This Week

Wednesday, September 3

• Salesforce Inc. (CRM)

Thursday, September 4

•  Broadcom Inc. (AVGO)

“A successful person is one who can lay a firm foundation with the bricks that others throw at him or her.”
– David Brinkley

It has no crown, yet when the chips are down, it is more powerful than a king or queen. What is it?

^{Last Week's Riddle:  I’m usually standing on a city sidewalk, and I’ll always stand by your car. But if you don’t feed me, you may get into trouble. What am I?}

^{Answer:  A parking meter}

One of the 8 peacocks we spotted on our outing in Beacon Hill park. 

Footnotes and Sources

1. WSJ.com, August 29, 2025
2. Investing.com, August 29, 2025
3. CNBC.com, August 25, 2025
4. CNBC.com, August 27, 2025
5. CNBC.com, August 28, 2025
6. WSJ.com, August 29, 2025
7. CNBC.com, August 28, 2025
8. MarketWatch.com, August 29, 2025
9. IRS.gov, July 29, 2024
10. The Spruce, March 19, 2025

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