Peakfolio Team
Aug 4, 2025
Between July 28 and August 4, stocks paused their summer climb as investors awaited fresh guidance from the Federal Reserve amid mixed economic signals.
The week opened quietly but turned more defensive midweek as traders reduced risk ahead of the Fed’s upcoming policy statement. Strong corporate earnings continued to support sentiment, yet several softer manufacturing and spending indicators reminded investors that the economy remains finely balanced. The S&P 500 and Nasdaq both ended slightly lower, while the Dow posted a modest gain thanks to strength in industrial and energy names.
Analysts characterized the week as one of consolidation rather than retreat. With inflation cooling but still above target, the Fed’s next tone could set the market’s course into late summer. Many expect policymakers to hold rates steady, leaving investors to interpret whether the next move tilts toward patience or preemptive caution.