Global Markets Weekly Update Summary
U.S. Market Overview
Major U.S. equity indexes finished the week lower, influenced by elevated Treasury yields, renewed U.S.-Iran tensions, and higher oil prices. The S&P MidCap 400 Index led declines, dropping 2.46%, while the Nasdaq Composite and Russell 2000 Index fell 2.05% and 1.65%, respectively. The Dow Jones Industrial Average was the least affected, declining by 0.85%.
Treasury Market Insights
Long-term U.S. Treasury yields rose, with the 30-year bond yield reaching its highest level since 2007. The Fed's July meeting minutes indicated uncertainty over inflation, with expectations for moderation but risks skewed to the upside.
Business Activity
U.S. business activity accelerated in August, with the S&P Global Flash Composite PMI rising to 56.0. Employment increased at its fastest pace since January 2025, although price pressures remained elevated.
Housing Market
The housing market showed ongoing weakness, with pending home sales dropping 2.3% in July and housing starts declining over 12% from June.
European Market Overview
The pan-European STOXX Europe 600 Index fell 0.56%. Germany's DAX, France's CAC 40, and Italy's FTSE MIB all closed lower, while the UK's FTSE 100 rose by 0.62%. Eurozone activity improved slightly, with the flash composite PMI at 52.1.
Japan Market Insights
Japan's stock markets declined sharply, with the Nikkei 225 Index down 3.93%. The yield on the 10-year Japanese government bond reached a 30-year high before retreating. GDP growth slowed unexpectedly, while inflation accelerated.
China Market Overview
China's equities diverged, with Hong Kong shares outperforming mainland benchmarks. Economic activity data for July showed a broad slowdown, prompting concerns about faltering momentum.
Other Key Markets
In Indonesia, the central bank held rates steady as the rupiah strengthened. In Brazil, foreign outflows and retail bankruptcy weighed on markets, although equities recovered some ground later in the week.
Market Performance Table
| Index | Friday’s Close | Week’s Change | % Change YTD |
|---|---|---|---|
| DJIA | 53,277.01 | -455.40 | 10.85% |
| S&P 500 | 7,674.37 | -111.39 | 12.11% |
| Nasdaq Composite | 26,180.46 | -548.71 | 12.64% |
| S&P MidCap 400 | 3,830.41 | -96.57 | 15.89% |
| Russell 2000 | 3,017.87 | -50.55 | 21.59% |
Source of data: Reuters, Yahoo! Finance, Bloomberg. Closing data as of 4 p.m. ET.