📰 Weekly Market Recap (August 4 – August 8, 2025)

Markets ended the week mixed as sector leadership shifted toward cyclicals and materials, while tech outperformed. Macro focus was dominated by Trump’s push for a historic IPO of Fannie Mae and Freddie Mac, sparking debate over housing finance stability.

📉 Index Performance

💡 AI-Powered Stock Picks – Weekly Performance

📊 Sector Snapshot

• Basic Materials: +5.08% — Led on commodity optimism and M&A activity.
• Technology: +3.85% — Boosted by AI infrastructure and networking stocks.
• Communication Services: +3.65% — Social media and streaming rebounded.
• Consumer Defensive: +3.17% — Food & beverage stocks saw inflows as defensives rotated.
• Consumer Cyclical: +3.13% — Retail and travel benefited from seasonal demand.

🧠 Macro Focus — Trump’s Fannie Mae & Freddie Mac IPO Plan

• Historic Offering: Potential $30B IPO could value the mortgage giants at $500B+ combined.
• Market Impact: Banking heavyweights already in talks; housing finance stability questioned.
• Policy Uncertainty: Debate over keeping government conservatorship and implied guarantees.
• Investor Windfall: Early stakeholders like Ackman & Paulson could see major gains.
• Housing Risks: Analysts warn mortgage rates could rise without federal backstop.

🔭 Outlook

• 📌 IPO details could dominate housing and bank sector sentiment into Q4 2025.
• 📈 Tech momentum may hold as AI investment remains robust despite macro volatility.
• ⚠️ Any signs of higher mortgage rates could weigh on homebuilder and REIT stocks.
• 💵 Expect volatility in financials as Wall Street positions ahead of the offering.

🔑 Key Takeaway

This week marked a pivot toward cyclical and commodity-driven leadership, but the macro spotlight is firmly on Trump’s bid to re-privatize housing finance. Markets will watch closely for clarity on guarantees and structure, as the outcome could reshape mortgage-backed securities and bank earnings alike.