Markets opened the final quarter of 2025 on solid footing as healthcare and technology shares lifted U.S. equities despite a government shutdown. Falling oil prices and soft labor data boosted expectations for Fed rate cuts and extended gold’s rally.
Equities eased off all-time highs as inflation cooled and oil prices lifted energy stocks. With bonds adjusting to Fed policy shifts and housing showing resilience, investors now look to jobs data in the week ahead.
The Federal Reserve resumed its rate-cutting cycle with a 25 basis point cut, igniting fresh record highs for the S&P 500, Nasdaq, Dow, and Russell 2000. While Treasuries slipped and commodities traded mixed, gold and the U.S. dollar advanced. Global markets saw a split week as European and Asian equities diverged on central bank moves and trade headlines.
The S&P 500 gained 1.6%, the Nasdaq jumped 2.5%, and international markets surged as investors priced in a Fed rate cut. Bond yields dropped on record auction demand, while gold topped $3,600 amid geopolitical tensions.
Markets began September cautiously, with stocks fluctuating on jobs data and tariff headlines while Treasuries rallied on Fed rate cut bets. Gold surged, oil slipped, and the labor market slowdown puts the Fed in focus ahead of this week’s CPI and sentiment readings.
Stocks rallied into the weekend after Fed Chair Powell signaled rate cuts may come as soon as September. The Dow and Russell 2000 led gains, Treasury yields fell, and oil prices climbed. Here’s what moved markets this week and what investors should watch in the days ahead.