This week's stock shocks as of 29th August, 2025

Wall Street closed the week ending August 29, 2025, with a surge driven by optimism about a potential Federal Reserve rate cut, new records for major indices, and a rebound in tech and bank stocks, marking a sharp contrast to the defensive stance from the previous week.

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Market recap 📊

This week’s trading was marked by key reversals and powerful moves across asset classes. The S&P 500 surged 2.21%, closing at a record 6,501.86, propelled by mega-cap tech and a synchronised recovery in financials. The Dow jumped more than 900 points, notching its best weekly gain since April, powered by robust lending data and deposit stabilisation at major banks, and industrial sector strength. The Nasdaq gained 2.7% as artificial intelligence and cloud names soared in response to earnings beats and upbeat guidance from sector bellwethers.

Market breadth improved sharply after several weeks of tepid participation: over 70% of S&P 500 members posted weekly gains, with small caps joining the party as the Russell 2000 added more than 3%. Options volumes soared, and ETF inflows signalled broad-based conviction behind the rally.

Behind the scenes, the catalyst was Fed Chair Jerome Powell’s much-anticipated Jackson Hole speech, which struck a carefully balanced balance between vigilance on inflation and a new willingness to ease policy if labour market risks increase. Bond yields dropped sharply, fueling a hunt for yield and risk across equities and high-yield credit. The narrative shifted decisively away from last week’s caution and risk management mode to a more aggressive, bullish stance.