Last Week In Review & What to Expect This Week: Like that friend who always says they're "fine" while their house is on fire, markets kept climbing this week despite trade tensions heating up faster than a Taylor Swift concert ticket sale. The S&P 500 and Nasdaq posted their second straight week of gains, proving once again that Wall Street has the attention span of a goldfish when Apple's CEO shows up with shiny presents for the president. Meanwhile, Federal Reserve Chair Jerome Powell is packing his bags for Jackson Hole, where he'll either calm nerves or send everyone into a tizzy—because nothing says "monetary policy clarity" like a speech in the shadow of the Grand Tetons.

Past Week's Market Review

The major indices decided to channel their inner Energizer bunny this week, just keep going and going. The S&P 500 climbed 1.0% to close at 6,449, marking its second consecutive positive week but falling just short of matching last week's stronger performance. The Nasdaq hit fresh all-time highs during the trading sessions, while the Dow Jones gained a solid 1.7% but finished tantalizingly close—just 0.2%—to joining its peers in record territory.

Bitcoin flexed its digital muscles with a 1.21% weekly gain, adding $1,424 to reach approximately $118,838 last week. The 10-Year Treasury yield ticked up modestly from 4.24% to 4.29%, while oil took a beating, with West Texas Intermediate crude falling 5.13% to $62.65 per barrel amid economic uncertainty. It's like watching a superhero movie where some heroes fly and others faceplant—entertaining, but you're not sure who to root for.

Top News Headlines & Market Impacts

Apple's Golden Handshake Pays Off: Tim Cook's charm offensive at the White House turned into Wall Street gold, with Apple stock surging over 10% in one of its largest weekly gains in years. The tech giant's CEO promised gazillions in U.S. manufacturing investment and reportedly gifted President Trump a custom glass and gold sculpture for the Resolute Desk. Markets loved the theater, pushing the stock higher and dragging major indices along for the ride. Because nothing says "sound investment strategy" like presidential gift-giving.

Inflation Plays Hard to Get: The July Consumer Price Index report showed inflation holding steady at 2.7% annually, exactly matching expectations but doing little to excite rate cut enthusiasts. Core inflation, excluding food and energy, actually accelerated to 3.1% from 2.9% the previous month—the highest since February. Markets shrugged off the mixed signals, proving once again that consistency is overrated when you're riding a momentum wave.

Producer Prices Go Rogue: The Producer Price Index delivered an unwelcome surprise, surging 3.3% year-over-year—the sharpest increase in five months and well above the expected 2.4%. This wholesale inflation spike likely reflects businesses absorbing higher tariff costs, suggesting consumer price pressures may intensify ahead. Bond yields jumped on the news, while equity markets wobbled before recovering, demonstrating the market's current "see no evil, hear no evil" approach to inflation data.

Mortgage Rates Hit 2025 Lows: Thirty-year fixed mortgage rates dropped to 6.58%, their lowest level since October and down from 6.63% the previous week. The decline sparked a 30% surge in refinance applications as homeowners rushed to capitalize on the relief. Housing market watchers cheered the development, though rates remain well above the sub-6% levels that defined much of 2024. It's like being grateful for a smaller root canal.

Fed Drama Unfolds Behind Scenes: Federal Reserve Vice Chair for Supervision Michelle Bowman revealed she dissented from July's decision to hold rates steady, preferring to begin gradual rate cuts due to labor market fragility. Her public explanation added fuel to speculation about September rate cut odds, which markets are pricing at over 90%. Sometimes the most interesting Fed discussions happen after the meeting ends.

Cisco Sounds Tariff Alarms: The networking giant beat earnings expectations but management couldn't resist mentioning the T-word during their analyst call, noting they're "operating in a complex environment" regarding tariffs. Revenue grew 7.6% year-over-year to $14.67 billion, but the tariff commentary overshadowed the solid results. When even tech companies start worrying out loud, you know trade policy is getting real.

Switzerland Gets Caught in Crossfire: Unlike other developed countries, Switzerland found itself slapped with sizable new tariffs, proving that neutrality only goes so far in trade wars. The move caught markets off guard and highlighted how quickly trade policy can shift from theoretical to very real economic impact. Swiss franc volatility increased as investors repriced risk.

Gold & Hard-Assets Watch

Gold lost its luster this week, falling from $3,398 per ounce on August 9 to $3,336 by week's end—a decline of roughly 1.8%. The precious metal's retreat came despite persistent inflation concerns, as investors appeared more focused on potential Federal Reserve rate cuts than traditional inflation hedges. Oil markets told a grimmer story, with West Texas Intermediate crude tumbling over 5% to $62.65 per barrel amid economic uncertainty and demand concerns. Commodity investors seem caught between inflation fears and recession worries—like choosing between a rock and a hard place, except both options involve losing money.

Real-Estate Pulse

The housing market served up a rare treat this week: actually affordable(ish) borrowing costs. Thirty-year mortgage rates dropped to 6.58%, their lowest point in 2025, triggering a refinancing frenzy and offering hope to buyers who've been priced out for months. The rate decline, while modest, represents meaningful relief in a market where every basis point matters. However, inventory remains stubbornly low at 4.6 months of supply, well below the 5-6 month range considered balanced. Housing price growth has cooled to just 1.7% year-over-year, finally trailing inflation and providing some real affordability improvement. Residential REITs face headwinds as demand shifts toward affordable starter homes, while commercial REITs grapple with broader economic uncertainty. It's a market where buyers are getting a break, but sellers are learning that pricing power isn't forever.

Key Events For the Week

Earnings to Watch

Wrapping Up

This week proved that markets can climb a wall of worry faster than a caffeinated squirrel, with the S&P 500 and friends posting solid gains despite trade drama and mixed inflation signals. Apple's presidential charm offensive reminded us that sometimes the best trade policy is good old-fashioned schmoozing, while mortgage rates finally threw homebuyers a bone by hitting 2025 lows. As we head into Jackson Hole week, all eyes turn to Jerome Powell, who'll either reassure markets about September rate cuts or send everyone scrambling faster than bargain hunters on Black Friday. With major retailers like Walmart and Home Depot reporting earnings, we'll get real-time insights into how tariffs are actually affecting Main Street America. The market may be riding high on optimism, but next week could determine whether this rally has legs or just really good PR.