Stock Market Indications Suggest Possible Retreat on Wall Street
Market Roundup: August 26, 2025
The global markets saw a mix of performances on Friday, with some indices edging up while others slipped.
In the United States, the S&P 500 reached a new record high in the trading day on Thursday and continued its positive trend. The benchmark index edged up by 0.2 percent, reflecting the optimistic sentiment in the market. Meanwhile, the U.S. economy grew by more than previously estimated in the second quarter of 2025, with real GDP shooting up by 3.3 percent compared to the previously reported 3.0 percent surge.
The Labor Department reported a decrease in first-time claims for U.S. unemployment benefits in the week ended August 23rd, with initial jobless claims dipping to 229,000.
Across the Atlantic, European stocks have moved modestly lower, reflecting a slightly bearish sentiment in the region. Meanwhile, the consumer sentiment index for August is expected to be unrevised from the preliminary reading of 58.6, indicating a stable consumer confidence level.
In Asia, the Shanghai Composite Index rose 0.4 percent to 3,857.93, buoyed by positive economic indicators. However, Seoul stocks ended lower due to foreign selling, with the Kospi slipping 0.3 percent. The broader Topix Index settled 0.5 percent lower. Asian stocks ended mixed on Friday, with the Hang Seng Index edging up by 0.3 percent and Japanese markets ending slightly lower. The Nikkei 225 Index dipped 0.3 percent.
The Federal Reserve's preferred readings on consumer price inflation were included in the Commerce Department's report on personal income and spending. The annual rate of growth by the PCE price index in July remained unchanged at 2.6 percent, while the core PCE price index, which excludes food and energy prices, rose by 0.3 percent. The annual rate of growth by the core PCE price index ticked up to 2.9 percent in July, indicating a slight increase in inflationary pressures.
Crude oil futures are slipping to $64.38 a barrel, reflecting a slight decrease in the demand for oil. Gold futures are edging down to $3,469.70 an ounce, a slight retreat from the record highs reached earlier this year.
The U.S. dollar is trading at 147.37 yen and $1.1653 against the yen and euro respectively, reflecting a slightly stronger greenback against the Japanese yen and a slightly weaker dollar against the euro.
French consumer prices rose slightly less than anticipated in August, indicating a slowdown in the rate of inflation in France.
In other news, there is no publicly available information that any bank negotiated the current Federal Reserve Governor Lisa Cook’s contract for trading in the securities market. Such contracts or appointments are typically handled internally by the Federal Reserve and government authorities, not by external banks.
Overall, the global markets continue to show a mix of performances, with some indices edging up while others slip. The positive sentiment in the U.S. market, coupled with the mixed performances in Asia and Europe, suggest a complex and dynamic global economic landscape.
