Weekly Market Recap: August 16, 2025

Astro-Financial Flux: Saturn’s Drag, Jupiter’s Push

Markets ended the week of August 15 with cautious optimism, as risk appetite grew but remained tethered by conflicting inflation data and evolving interest rate expectations. All major U.S. indices registered gains, and international equities, particularly in Europe and Asia, outperformed. However, the bond market, currency moves, and underlying inflation dynamics are suggesting a market still attempting to find its footing in the post-hike landscape.

Equity Markets: Quiet Confidence, Strong Rotation

The S&P 500 and NASDAQ posted modest weekly gains of 1.0% and 0.8% respectively, marking their sixth positive week out of the past eight. The Dow outpaced them both, rising 1.8%—but fell just short of hitting its all-time high from December 2024. Despite the modest pace, momentum remains positive, especially for small caps, which surged 3.1% on the week, significantly outperforming their large-cap peers.