Monthly Download: August 2025

Markets were modestly higher in August with momentum for stocks continuing to the upside. Expectations for Fed rate cuts, consumer resilience, solid earnings growth, and narrowing trade uncertainties were all factors in supporting performance. Fed Chair Powell's speech at the annual Jackson Hole conference was more dovish than expected, emphasizing softness in the labor market and limited inflation pressures. US equities were led by strong performance from more rate-sensitive small companies like homebuilders, while non-US stocks continued their strong leadership for the year. Treasury yields declined on weaker jobs data and Powell’s speech despite concerns about tariff impact starting to show up in inflation data.