Week in Review & Preview

Like that friend who brings up artificial intelligence at every party, the market couldn't stop talking about AI in August – and it paid off handsomely. With the S&P 500 hitting fresh records and Bitcoin sitting pretty above $108,000, it's been a month that would make even the most stoic investor do a little victory dance. But with September's jobs report looming like the last boss in a video game, traders are asking: can this sugar rush last, or are we about to crash harder than a Windows 95 computer?

Last Week's Market Review

The major indices wrapped August like the final boss in a video game – dramatic, record-breaking, and making investors wonder what’s coming in the next level. The S&P 500 closed at a historic high of 6,501.86, notching its fourth consecutive monthly gain with a solid 2.6% bump for August. The Dow Jones wasn’t about to be outdone, hitting its own record at 45,636.90 points, up 0.16% on Thursday alone. Meanwhile, the Nasdaq gained 0.53% to reach 21,705.16, proving that tech stocks are still the popular kids in the market cafeteria. Even with Friday’s slight pullback, August delivered gains that would make a slot machine jealous – the S&P up roughly 10% year-to-date and Bitcoin trading around $108,253 after a wild ride from its $124,000 peak earlier in the month. The VIX, our favorite anxiety barometer, closed at a relatively calm 15.36, suggesting investors are feeling more zen than stressed. Like a Beyoncé tour, everyone wants a ticket to this rally.

Top News Headlines & Market Impacts

Nvidia Earnings Beat Expectations But China Concerns Linger: The AI chip giant delivered another blockbuster quarter with a 56% revenue surge, but investors got spooked by uncertainties around China sales forecasts, causing shares to dip 0.8% despite the stellar results. The earnings report reinforced that AI infrastructure spending remains robust, sending other tech stocks like Alphabet (+2%) and Amazon (+1%) higher as the AI ecosystem continues to expand.

Powell Signals September Rate Cut at Jackson Hole: Fed Chair Jerome Powell essentially gave markets a green light for rate cuts, stating that "the balance of risks seems to be changing" between employment and price stability. This dovish pivot sent rates markets into overdrive, with traders now pricing in a 75-90% chance of a quarter-point cut in September. Treasury yields dropped and stocks surged on the news, with the announcement marking a pivotal moment in monetary policy.

Bitcoin Hits New Highs Then Corrects: The world's largest cryptocurrency touched a record $124,400 before whale selling and profit-taking drove it down to current levels around $108,000. Despite the 13% pullback from peaks, Bitcoin still notched an impressive 83.6% year-over-year gain, with institutional flows and ETF activity remaining robust.

Trump Fires BLS Commissioner Over Jobs Data: In an unprecedented move, President Trump dismissed the head of the Bureau of Labor Statistics following the disappointing July jobs report, raising questions about data independence and institutional integrity that could affect market confidence going forward.

Tariff Court Ruling Creates Weekend Drama: A federal appeals court ruled that Trump's emergency justification for certain tariffs exceeded presidential powers, potentially setting up a Supreme Court showdown and adding uncertainty to trade policy as markets head into September.

Commodity Rally Fueled by Fed Dovishness: Gold continued its march toward $3,500 per ounce, gaining over 3% for the month as safe-haven demand and rate cut expectations converged. Oil prices showed mixed performance while agricultural commodities remained under pressure from strong global supply.

Real Estate Sector Struggles Despite Rate Cut Hopes: Real estate investment trusts posted another disappointing month with the sector down 6.4% year-to-date, as high mortgage rates and economic uncertainty continued to weigh on property valuations despite growing expectations for Federal Reserve easing.

Gold & Stuff

Gold miners are having the time of their lives as the precious metal rallied over 3% in August to approach $3,500 per ounce, driven by Fed dovishness and ongoing geopolitical tensions. The yellow metal's breakout above $3,450 suggests more upside ahead, with analysts targeting $4,000 as rate cuts materialize and inflation concerns persist. Oil markets remained choppy with supply concerns battling demand worries, while agricultural commodities faced headwinds from bumper crop forecasts globally. Industrial metals like copper continued their tariff-induced volatility, reflecting uncertainty about global trade flows and manufacturing demand.

Gold surged to a $21 trillion market capitalization as it reached consecutive all-time highs, benefiting from dollar weakness and inflation-hedging demand. Oil prices gained momentum following geopolitical tensions, with West Texas Intermediate gaining more than 1% to hover near $63.54 and Brent crude rising above $66 per barrel. Gold, oil, and Bitcoin prices were up 0.7%, 1.3%, and 0.6% respectively, on Monday as Labor Day holiday trading remained muted. Commodity investors are positioning for potential Fed easing and continued geopolitical uncertainties.

Real-Estate Pulse

The housing market feels like that awkward middle school dance – everyone's standing around waiting for someone else to make the first move. Mortgage rates finally showed mercy, dipping to their lowest levels in nearly 11 months at around 6.5% for a 30-year fixed loan, but buyers and sellers remain locked in a standoff. Existing home sales fell 2.7% year-over-year while new home sales dropped 6.6%, as sellers anchored to pandemic-era prices refuse to negotiate and buyers wait for better deals. REITs continued their 2025 struggles with a 6.4% year-to-date decline, though some sectors like healthcare and infrastructure managed positive returns. The wealth effect from rising home prices supports the broader economy, but regional divergence is growing more pronounced as affordability challenges mount across major metropolitan areas.

Central Bank Announcements

Earnings To Watch

Social Sentiment

Retail investors are feeling more cautious than a cat near a bathtub, with bearish sentiment spiking over 10 percentage points to 43.2% in the latest AAII survey – the biggest jump since February's market peak. Reddit threads are buzzing with concerns about timing the market ahead of volatile August and September months, while Stocktwits users show persistent fear levels despite the rally. Interestingly, this pessimism might actually be bullish – contrarian indicators suggest when everyone's worried, there's more cash on the sidelines ready to fuel the next leg up.

Wine & Dine

Like a perfectly aged Bordeaux, this market rally has developed complex notes of AI optimism, Fed dovishness, and geopolitical intrigue. But even the finest vintage can turn if stored improperly—and September's historically volatile climate might test this bull market's aging process.

Wrapping Up

This past week served up a delicious cocktail of record highs, political drama, and Fed flip-flops that would make even Washington scribes dizzy. With core inflation still running hot, Trump reshuffling Fed personnel like a reality TV show, and September's notorious volatility lurking ahead, investors face a fascinating chess match between dovish Fed signals and stubborn price pressures. Next week's jobs report will either validate Powell's pivot or remind everyone why data dependency isn't just Fed-speak—it's a survival strategy. Stay nimble, stay diversified, and remember: even in bull markets, September historically likes to crash the party. But hey, that means October and November could bring the real fireworks.