Economic Update 9-08-2025
On a holiday-shortened week, economic data included stronger ISM services and manufacturing PMI surveys, while the August employment situation report came in again weaker than expected.
Equities experienced gains worldwide to varying degrees, largely upon hopes of easier Federal Reserve policy. Bonds gained as yields fell in response to weaker jobs data. Commodities were mixed to lower, with higher supplies in a variety of goods.
U.S. stocks were up slightly, with growth and small cap again outperforming the broader S&P 500. Although it didn’t appear to affect markets too much, during the Labor Day weekend, the Court of Appeals for the Federal Circuit affirmed the Court of International Trade’s May ruling blocking the Trump tariffs placed under the IEEPA (which account for about half of the tariffs placed this year, or 8 percentage points). However, these could remain in place based on acts from the 1960s and 1970s on national security grounds, unfair trade practices, or via persistent trade deficits. However, no changes have been put into effect until next month, or a judgment or other notice comes from the Supreme Court, which could delay things further.
By sector, communications and consumer discretionary led with gains of several percent for the week, while most other areas were flat or experienced declines, led by energy and financials. Real estate was down a fraction of a percent. Within communications, shares of Alphabet soared by over 10% as a federal judge ruled that Google wouldn’t be forced to divest its popular Chrome internet browser to satisfy antitrust concerns.