Weekly Market Insights | Investors React to Mixed Signals

Chad Kunc | August 18, 2025

Stocks rose last week despite mixed signals on inflation as investors kept one eye on the Fed’s September meeting.

The Standard & Poor’s 500 Index advanced 0.94 percent, while the Nasdaq Composite Index added 0.81 percent. The Dow Jones Industrial Average rose 1.74 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, increased 2.16 percent.^1,2

Third Gain in Four Weeks

Stocks posted modest losses to start the week as investors braced for July consumer inflation reports. The White House’s executive order on Monday extending the tariff deadline for China by 90 days failed to move markets in the other direction.³

Stocks then staged a two-day rally following the latest Consumer Price Index (CPI) report, which showed July inflation held steady over the prior month—beating expectations. The inflation news led some investors to move into small-cap stocks, with the Russell 2000 Index of small-cap stocks rising 5 percent over Tuesday and Wednesday.⁴

However, markets slipped Thursday as investors dug into the Producer Price Index (PPI) for July, which showed wholesale inflation hit a 3-year high last month; this was the third weekly gain in the past four weeks for each of the three major averages; the S&P and Nasdaq advanced four of the last five weeks.^5,6,7

A Mixed Inflation Story

Inflation continues to give mixed signals, which can unsettle investors who anticipate the Fed adjusting rates at its September meeting.

Last week’s CPI report showed that “headline” (retail) inflation held steady. Stocks rose in response, even though core inflation—excluding volatile food and energy prices—was hotter than economists expected.

Two days later, the PPI report revealed that inflation began to creep into wholesale prices in July. Stocks fell in response as investors processed the conflicting reports.^8,9

This Week: Key Economic Data

Monday: Homebuilder Confidence Index.

Tuesday: Housing Starts. Building Permits. Federal Reserve Official Michelle Bowman speaks.

Wednesday: Minutes from Fed’s FOMC July Meeting. Federal Reserve Official Christopher Waller and Atlanta Fed President Raphael Bostic speak.

Thursday: Weekly Jobless Claims. Services & Manufacturing PMI Composite. Existing Home Sales. Leading Economic Indicators. 30-Year TIPS (Treasury Inflation-Protected Securities) Auction. Fed Balance Sheet. Atlanta Fed President Raphael Bostic speaks.

Friday: Fed Chair Jerome Powell speaks.

^{Source: Investors Business Daily - Econoday economic calendar; August 15, 2025}^{The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.}

This Week: Companies Reporting Earnings

Monday: Palo Alto Networks, Inc. (PANW)

Tuesday: The Home Depot, Inc. (HD)

Wednesday: The TJX Companies, Inc. (TJX), Lowe’s Companies, Inc. (LOW), Analog Devices, Inc. (ADI)

Thursday: Walmart Inc. (WMT), Intuit Inc. (INTU)

^{Source: Zacks, August 15, 2025.}^{Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.}

“If you would be loved, love and be lovable.”

– Benjamin Franklin

Learn About ABLE Accounts

People with disabilities can use an Achieving a Better Life Experience (ABLE) account to help pay qualified disability-related expenses. Here are some things to know about ABLE accounts:

This tax-advantaged savings account doesn't affect their eligibility for government assistance programs.
ABLE account-designated beneficiaries may be eligible to claim the saver's credit for a percentage of their contributions.
Eligible beneficiaries must be 18 years old at the close of the taxable year, not dependent or full-time students, and meet the income requirements.
Families may roll over funds from a 529 plan to another family member's ABLE account.
Disability-related expenses include housing, education, transportation, health, prevention and wellness, employment training and support, assistive technology, and personal support services.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS¹⁰

Infused Water Recipes

Staying hydrated is essential for our overall health, and these fun, delicious infused water options make drinking water a little more fun. Bonus points if you try them with sparkling water for a bit of fizz!

Honeydew, cucumber, and mint
Watermelon, kiwi, and lime
Mango, raspberries, and ginger root
Blackberries, orange, and ginger root
Grapefruit, pomegranate, and mint
Pineapple, coconut, and lime
Blueberries, lemon, and rosemary
Strawberries, lemon, and basil

To infuse your water with these delicious combinations, just put all the ingredients in a pitcher, add water, and remove the fruits, veggies, or herbs in 24 hours. Drinking water has never been tastier or more beautiful.

Tip Adapted from Culinary Hill¹¹

Create a 13-letter word using all 13 of the following letters: O A I I S T T R R D N A M.

Last Week's Riddle: What is worn by the foot and often bought by the yard?
Answer: Carpet.

Blue-Ringed Octopus
Lembeh Straits, Indonesia

Footnotes and Sources

^{1. WSJ.com, August 15, 2025}

^{2. Investing.com, August 15, 2025}

^{3. CNBC.com, August 11, 2025}

^{4. CNBC.com, August 13, 2025}

^{5. MarketWatch.com, August 14, 2025}

^{6. WSJ.com, August 15, 2025}

^{7. WSJ.com, August 15, 2025}

^{8. CNBC.com, August 12, 2025}

^{9. MarketWatch.com, August 14, 2025}

^{10. IRS.gov, July 22, 2024}

^{11. Culinary Hill, March 19, 2025}

Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.

The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.

The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.

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Please consult your financial professional for additional information.

This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG is not affiliated with the named representative, financial professional, Registered Investment Advisor, Broker-Dealer, nor state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security.