Weekly Market Recap (August 25–29, 2025)
Stocks finished the week slightly higher: the Dow led while the S&P 500 nudged up and the Nasdaq was flat. Energy and Communication Services outperformed; defensives like Utilities lagged.
Index Performance (Weekly)
| Index | Weekly Change |
|---|---|
| Dow Jones | +0.58% |
| S&P 500 | +0.33% |
| Nasdaq | +0.03% |
Sector Snapshot (1-Week)
AI Picks Performance
| Stock | Weekly Return | Comment |
|---|---|---|
| NVIDIA (NVDA) | −3.13% | AI leaders softened; profit-taking into month-end |
| VICI Properties (VICI) | +0.84% | REITs mixed; VICI modestly positive |
| Arista Networks (ANET) | +2.64% | Networking outperformed broader tech |
️ Macro Focus — The Properties at the Heart of the Allegations Against Lisa Cook
President Trump moved to remove Fed Governor Lisa Cook, alleging misstatements on mortgage applications tied to three properties (Ann Arbor, Atlanta, Cambridge). Cook has sued, seeking to block the action; a federal judge is weighing a stay while the case proceeds.
- Allegations: For the Atlanta and Ann Arbor loans, officials claim each was represented as a primary residence; for Cambridge, that it was listed as a second home rather than an investment property.
- Documentation: Public records show 2021 mortgages with “primary residence” attestations on Ann Arbor and Atlanta within weeks of each other, and “second home” on Cambridge. Cook hasn’t been charged; proving fraud typically requires intent beyond paperwork errors.
- Context: Cook reported rental income on the Cambridge condo later in 2021 (now >$50k/yr). Her counsel argues the allegations are unrelated to her duties and don’t justify removal.
Bottom line: this is a legal and governance story more than a macro one, but markets will watch for any perceived changes to Fed independence or policy continuity.
Outlook
- Sector rotation: Energy leadership vs. defensive lag suggests “soft-landing” positioning continues; watch crude and yields.
- Mega-cap earnings/guides: Follow-through from AI leaders will set the tone for September flows.
- Policy watch: Developments in the Cook case are unlikely to shift rates near-term, but Fed optics matter for volatility.
Key Takeaway
A quiet week on indexes masked under-the-hood rotation: Energy and Comm Services up, defensives down. AI bellwethers were mixed, with NVDA consolidating. Macro headlines (including the Cook lawsuit) didn’t dent risk appetite, but September catalysts loom.
Week ended August 29, 2025. Data: index providers & public disclosures.
