Weekly Market Commentary: Stocks and Yields Fall After Weak Economic Data

Sunflower Bank Weekly Market Commentary: August 4, 2025

Each week, our Wealth Management team analyzes the U.S. stock market and bond market activity and news of the previous week, summarizing their findings into a weekly market update report. The key points of this week's commentary, "Stocks and Yields Fall After Weak Economic Data," include:

• Domestic equity markets declined last week amidst a flurry of economic data, earnings reports, and market-moving events. The S&P 500 and Nasdaq 100 ended last week down slightly more than -2%. The Russell 2000 declined -4%, and the S&P 500 Equal-Weight Index fell -3%. Treasury yields also declined across the curve.
• The most consequential event last week was the July Jobs Report. The report showed that the economy added 73,000 jobs in July, fewer than expected and a tepid print. More importantly, prior month adds were revised down sharply. Job gains in May and June were revised down by -258,000. The economy added just 14,000 jobs in June and 19,000 jobs in May.
• Following the weak data, futures markets now expect the Fed to cut its benchmark interest rate 25 basis points in August after the committee held the rate steady in July and signaled a wait-and-see approach.

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