Last Week's Recap
The US Market - August wrapped up on a strong note
Stocks retreated on Friday as investors booked profits ahead of the long weekend, following a new S&P 500 record and solid Nvidia earnings. New inflation data showed prices firming higher above the Fed's target in July.
For the week, the S&P 500 slipped 0.1%, despite briefly breaking above the 6,500 mark for the first time on Thursday. The Dow and Nasdaq both eased 0.2%, while small-caps stood out — the Russell 2000 rallied to an eight-month high.
August wrapped up on a strong note. The S&P 500 gained 1.4%, its fourth straight monthly advance. The Dow rose 2% and the Nasdaq added 1.6%, notching a fifth consecutive winning month.
The Fed’s preferred inflation gauge, core PCE, rose 2.9% in July, the fastest pace since February, underscoring sticky price pressures. Meanwhile, the University of Michigan’s consumer sentiment index fell to a three-month low, with survey respondents anticipating higher inflation in the year ahead.
September has been the weakest month for U.S. equities since 1950, per the Stock Trader’s Almanac. Over the past decade, the S&P 500 has averaged a 0.7% decline in September, according to Bespoke, suggesting volatility may pick up as markets digest the latest Fed signals and earnings updates.
The US Sectors & Stocks - NVDA fell despite strong Q2 results
Sectors: Six of the S&P 500’s 11 sectors advanced last week. Energy led gains, supported by firm crude prices and export demand, while Utilities lagged as investors rotated away amid rising rate-cut expectations. Looking at August overall, most sectors contributed positively, especially Tech, Consumer Discretionary, and cyclicals.
Nvidia (NVDA): Shares dipped 2.1% despite posting a 56% YoY revenue jump and 54% EPS growth in Q2. A softer-than-expected data-center revenue ($41.1B, +56% YoY) and no sales of China AI chips disappointed markets. Management expects no China AI chip revenue in Q3 either, citing U.S. regulatory headwinds.
Marvell Technology (MRVL): Plunged 13.9% after issuing weak Q3 revenue guidance. Despite strong Q2 results (+123% EPS, +58% sales), concerns over slowing AI server demand weighed heavily.
Snowflake (SNOW): Soared 21.3% to a 3-year high after a Q2 beat and raised full-year guidance. Revenue grew 32% YoY to $1.1B, slightly ahead of expectations.
Dell Technologies (DELL): Dropped 6.7%, hurt by a disappointing Q3 profit outlook, though it raised full-year guidance and delivered solid Q2 results.
PDD Holdings (PDD): Slipped 5.4% as Q2 net profit fell 4% YoY, despite revenue topping expectations. Management cautioned that profit volatility could persist.
Alibaba (BABA) surged 9.8% this week, driven by strong Q1 results showing a 2% revenue increase and a 76% jump in net profit. The company’s AI and cloud business grew 26%, and its strategic focus on quick commerce boosted investor confidence.
MongoDB (MDB): Surged 44.1% on strong Q2 results (+24% YoY revenue) and an upgraded full-year outlook. Results eased investor concerns that AI might erode enterprise software spending.
Affirm (AFRM): Gained 11.3% after upbeat Q4 earnings and optimistic FY26 guidance.
Eli Lilly (LLY): Rose 2.9% as its experimental weight-loss pill showed promising late-stage trial results, bolstering investor sentiment.
Hong Kong Market - HSI extended monthly winning streak
The Hang Seng Index (HSI) fell 1.03% last week to 25,077.62, but gained 1.23% in August, marking a fourth straight monthly advance.
Meituan (3690.HK) experienced a significant drop of 13.26% this week following an 89% drop in Q2 adjusted net profit due to intense competition in the instant retail sector. and revenue also missed.
Li Auto (2015.HK) reported a decrease in Q2 adjusted EPS to $0.10 from $0.20 YoY, with sales declining to $4.22 billion from $4.36 billion YoY. The stock fell 0.60% this week.
Trip.com Group (9961.HK) reported a 16.22% increase in net income for the second quarter of 2025, reaching RMB 148.43 billion. The stock rose 14.45% this week.
Mixue Group (2097.HK) reported a 39.3% increase in revenue for the first half of 2025, reaching RMB 148.75 billion. Despite the positive earnings report, the stock fell 9.54% last week.
Singapore Market - STI gained 2.3% in August
The Singapore stock market experienced a slight increase this week, with the Straits Times Index (STI) rose 0.4% weekly, +2.3% for August, supported by Fed cut expectations.
Oversea-Chinese Banking Corp. (OCBC) saw a slight decline of 1% this week. The bank priced $1.0 billion worth of fixed-rate subordinated bonds due on September 8, 2035, under its $30 billion global medium-term bond program.
Singtel's Australian subsidiary, Optus, appointed John Arthur as the new chairman of the board, replacing outgoing chairman Paul O'Sullivan. This change in leadership led to a 2.6% increase in Singtel's stock price, reflecting a strategic decision by the company.
Australian Market - ASX 200 slightly lower
The Australian stock market experienced a slight decline, with the ASX 200 Index (XJO) slipped 0.1% amid mixed earnings and global uncertainty.
Macquarie Technology (MQG.AU) released its FY financial results, showing a net income of AUD 34.9 million. Despite revenue slightly missing estimates, the stock saw a modest increase of 0.6% for the week.
The Week Ahead
Macro Factors - Jobs report in focus
U.S. investors face a shortened trading week, with markets closed on Monday, September 1st, in observance of Labor Day.
The spotlight will be on Friday’s August jobs report. Consensus expectations call for just 73,000 jobs added in the month, with unemployment edging up to 4.3%. With the labor market clearly losing momentum, the release will be pivotal in shaping expectations for the Federal Reserve’s September policy meeting. Fed Chair Jerome Powell has described the labor backdrop as “curious,” noting that sluggish job creation alongside muted layoffs has kept the unemployment rate low by historical standards.
Politics around the Fed add an extra layer of uncertainty. President Trump’s legal battle to oust Governor Lisa Cook continues in court, while his nominee, Stephen Miran, heads to a Senate hearing this week. Miran is seen as an advocate for more aggressive easing. While the legal wrangling is unlikely to affect near-term policy, it underscores growing concerns about the central bank’s independence.
Beyond Friday’s jobs data, investors will parse additional economic readings including JOLTS job openings, ADP private payrolls, and ISM manufacturing and services surveys, making for a packed macro calendar.
On the corporate front, earnings season is winding down but still features several notable names. Salesforce, Broadcom, Lululemon, DocuSign, and Macy’s are set to report, while Figma will deliver its first results since going public.
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