Weekly Market Wrap & The Week Ahead
US equities closed the week on a strong note, with the S&P 500 reclaiming last week’s losses and finishing near the highs. Technology led the advance, shrugging off the latest round of tariff hikes that took effect on August 7. Apple was the standout, accounting for roughly one-third of the index’s weekly gain after announcing a $100bn investment in US manufacturing a move seen as cushioning the blow from higher import costs over time.
Elsewhere, consumer-facing stocks found support from solid corporate earnings, while the energy sector lagged, pressured by a >5% drop in WTI crude as OPEC+ pushed ahead with production increases.
Earnings season is winding down, but Goldman Sachs noted an interesting anomaly average post-earnings moves for S&P 500 stocks exceeded options-implied expectations for the first time in 18+ years, signalling that upside surprises are finally outpacing market pricing.
Index & Sector Moves
S&P 500: +2.4%
Dow Jones: +1.4%
Nasdaq 100: +3.7% (IT, Consumer Discretionary, Commercial Services strong; Energy, Healthcare, Real Estate weak)
Later This Week
Curve Trading Primer, Inflation Recap, New Trades, Option Positioning Dashboard Release and more….
Macro & Policy Backdrop
