Equities Fall Mostly Lower in Volatile Week

Wall Street experienced a mixed and volatile week, ultimately closing last Friday on a down note. Each of the major benchmark indexes pulled back from recent record highs. A slump in technology stocks was the primary drag on the market. The latest inflation data, which showed core prices continued to rise, weighed on market sentiment, although it probably wasn’t enough to derail expectations for a September interest rate cut. Initial and continuing jobless claims were higher than predicted, evidencing continued sluggishness in the labor market. Bond yields declined as prices rose with increased demand. Crude oil prices ticked higher by week’s end, mostly driven by ongoing geopolitical factors, particularly relating to the prospects of a ceasefire in Ukraine.

GDP Grew 3.3% in Second Quarter

Gross domestic product (GDP) increased at an annual rate of 3.3% in the second quarter of 2025, according to the second estimate from the Bureau of Economic Analysis. In the first quarter, GDP decreased 0.5%. The increase in GDP in the second quarter primarily reflected a decrease in imports, which are a subtraction in the calculation of GDP, and an increase in consumer spending. These movements were partly offset by decreases in investment and exports. Personal consumption expenditures, a measure of consumer spending, rose 1.6% in the second quarter, driven by a 2.4% rise in spending on goods. Gross domestic investment fell 13.8% in the second quarter. Exports decreased 1.3%, while imports fell 29.8%.

Eye on the Week Ahead

Much attention will be paid to the August jobs report released this Friday. July’s report resulted in significant downward revisions, which painted labor market conditions as much weaker than previously thought.