Weekly Stock Market Update | Dow, S&P 500, NASDAQ News – August 31, 2025 at 07:01 AM

Stocks fell lower on Friday with the S&P 500 0.64% down at 6,460.26, but had its fourth winning month in a row. The Nasdaq Composite was down 1.15%, finishing at 21,455.55, while the Dow Jones Industrial Average lost 92.02 points or 0.20% and closed at 45,544.88. Despite this, all indexes had solid gains for August, with the Dow increasing by more than 3%, S&P 500 nearly 2%, and Nasdaq 1.6%.

One of the highlighted performers was Nvidia, which makes up about 8% of the S&P 500. They reported better than expected Q2 results, with booming revenue growth of 56% and shares up 0.8%. Despite slight concerns over their data center business, many semiconductor analysts have become even more bullish about Nvidia. Other companies that benefitted from Nvidia’s positive results include Broadcom, which rose 2.8% and Micron Technology, which added 3.6%.

Another strong performer was Snowflake, whose shares jumped 20% after Q2 results surpassed expectations.

However, the market is heading into a historically poor month. September has been the biggest losing month for S&P 500, Dow and Nasdaq since 1950 and the focus will be on the jobs market, labor market and inflation reports. This is alongside challenges relating to the question of the Federal Reserve’s independence and the appointment of Fed board members.

Furthermore, there is concern about the US economy due to tariffs which is seen as an issue that isn’t factored into the stock market. If the labor market continues to deteriorate, it could cause further damage. Traders are also concerned about the independence of the Federal Reserve amid President Trump’s attempt to oust members of the board of governors.

Lastly, Nvidia shares were down by 0.8% even after an impressive Q2 result due to lower than expected revenue from its data center business and uncertainties around the Chinese market. Despite this, the company’s CEO Jensen Huang reassured that their AI chips demand is strong and the company is planning to reenter the $50 billion China AI market.

US stocks saw a retreat from record highs last week as Wall Street was hit by worries about consumer inflation, with prices rising higher than anticipated for the month of July. The Dow Jones Industrial Average fell approximately 0.2%, the S&P 500 lost 0.6%, and the tech-heavy Nasdaq Composite was down over 1.1%. Big Tech stocks also saw a slump, with Nvidia seeing a decline of over 3% after the release of its earnings report. However, despite the retreat, August saw gains within the S&P 500 and Dow of 1.4% and 2% respectively, marking the fourth straight month of gains. The Nasdaq also saw a rise of 1.6% in its fifth straight winning month.

Marginal losses were experienced in the last week for the S&P 500 and Nasdaq Composite, which slipped by 0.5%. The Dow, however, managed to gain 1.5% riding on a surge after Federal Reserve Chair Jerome Powell’s comments. Earnings from Nvidia and reports from Dell, Dick’s Sporting Goods, Best Buy, Dollar General, and Abercrombie & Fitch served as the corporate highlights for the week. The market is hopeful of interest rate cuts by the Fed in September, with over 85% odds being placed on this likelihood.

Global markets are bracing for September, traditionally considered the worst month for stocks. S&P 500 and Dow Jones managed to reach new highs by the end of August. Interestingly, Europe’s banking sector emerged as the biggest gainer, with shares hitting their highest level since the 2008 financial crisis. Shares of Germany’s Commerzbank were up over 100% year-to-date. However, media stocks were severely hit, with advertising group WPP experiencing the biggest fall, as a 71% pre-tax profit fall in the first half resulted in a cut of its full-year outlook. As the market moves into the second half of the year, the focus will be on economic data and the response to the issues of tariffs and the U.S. tax bill.