Markets eked out gains this week with a mixed bag of data. Will sentiment stabilize outlook or will it end up rocking the boat?
Monday S&P 500 0.06% | NASDAQ 0.32%
Monday’s trading pulled back from its stratospheric climb last week. Equity valuations gained meaningful traction as prospects for a September rate hike have fallen. Oil prices pushed higher on the day as well.
Tuesday S&P 500 0.32% | NASDAQ 0.60%
Technology stocks fell for the second session as communication giant Alphabet (GOOGL) retreated, dragging down indexes. A quiet day on data but tomorrow’s Consumer Price Index (CPI) will seek to provide clarity on July price changes. Markets were trimming ahead of the release in the event equity investors don’t like what they see.
Wednesday S&P 500 0.26% | NASDAQ 0.54%
CPI data came in at expectations allowing markets to resume a risk-on focus. Mortgage applications took a turn in the positive after the 10-year treasury dropped last week. Rates had previously rose to their highest level on 30-year mortgages since July 2025 as buyers sought to take advantage.
Thursday S&P 500 0.65% | NASDAQ 0.81%
Equities pushed forward on the back of a par inflation reading on Wednesday. Producer Prices (PPI) also came in lower than estimates, helping soothe rate hike concerns further. The surge was led by technology with semiconductor stocks projecting sustained profitability.
Friday S&P 500 0.17% | NASDAQ 0.28%
Markets were muted to close out the week as July’s retail sales disappointed and Consumer Sentiment fell for the month. August spending will shift to back-to-school shopping which could shore up sentiment in the interim. Stocks, however, showed their strength after records by the S&P500 (Large Companies) and Russell 2000 (Small Companies).
Conclusion S&P 500 0.36% | NASDAQ 0.14%
After a sluggish start to the week, equity markets turned it around to finish in the green. There were important economic data points that played a role in the swing, most notably inflation measures and sentiment. The important thing to note that is sentiment has gradually climbed over the summer months. In a stretch with uncertainty on borrowing costs and inflation concerns, data helped calm nerves. As we head into late August, more focus will be on whether sentiment stays stable. The Federal Reserve will gather more data to make their case to keep rates level in September or hike. The probability of the latter has fallen in recent week and will keep margins under close watch. In contrast, projected earnings will be key in determining whether buyers are willing to pay at current price/earnings ratios.
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