Peakfolio Team
Aug 11, 2025
Between August 4 and August 11, U.S. markets retreated after the Federal Reserve reaffirmed its commitment to keeping interest rates elevated until inflation shows more decisive progress.
After several weeks of steady gains, investor sentiment turned defensive. The S&P 500 and Nasdaq each fell over one percent, led by declines in rate-sensitive sectors such as real estate and technology. The Fed’s cautious tone dampened hopes for near-term policy easing, while mixed inflation data added to uncertainty. Treasury yields ticked higher, and the dollar strengthened as traders priced in fewer rate cuts for the year ahead.
Still, market analysts framed the week’s pullback as healthy within the context of a strong summer rally. Corporate earnings remain broadly resilient, and volatility levels suggest investors are reducing exposure rather than exiting risk assets entirely. With attention now shifting toward the next inflation print, the market’s tone is one of patience — waiting for clarity before making its next move.