Weekly Review 8-30-25

The S&P500 index finished slightly lower last week as markets headed into a holiday weekend and the unofficial end of summer. The S&P 500 on Thursday closed above the 6,500-point level for the first time, but it slipped back below that threshold on Friday (FactSet).

Friday’s report on the Personal Consumption Expenditures (PCE) Index found that core inflation, which excludes food and energy, rose at a 2.9% annual rate in July. Total inflation was flat on the month as lower energy prices, especially gasoline, offset rising shelter and services costs. Without that energy relief, price pressures would have appeared stronger (bea.gov).

The upward revision to second-quarter GDP, from 3.0% to 3.3%, helped clear up some confusion from the initial report. The first estimate had suggested consumer spending was slipping, but the updated figures showed it was essentially flat. That put real final sales to private domestic purchasers at 1.9%, up from the 1.2% originally reported, pointing to steadier demand from households and businesses than first thought. Even so, a big part of the growth came from a sharp drop in imports tied to tariffs, which inflated the headline number in a way that may not last (bea.gov).

Looking Ahead

The labor market report is due Friday and will show whether a recent weakening trend extended into August. In July, the economy generated 73,000 jobs, and earlier months were revised downward by a combined 258,000, leaving April and May with gains of just 19,000 and 14,000, respectively which is basically flat (bls.gov). You may remember that President Trump fired the head of the Bureau of Labor Statistics shortly after this report was released.

Enjoy your week,

Jeremy Raffer, MBA
Director & Wealth Manager
Author Financial Planning for Widows

m. 201-747-2705
w. rafferwealthmanagement.com
e. [email protected]

Steward Partners
115 W. Century Rd, Suite 145
Paramus, NJ 07652.

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