Stocks To Watch – 9/2/2025

Brief Overview

Welcome back to this week’s Stocks to Watch!

Happy Labor Day! We hope you’re all enjoying the extended weekend. As usual, we’re ready to get back to the markets to deliver the best setups to our members! A few notable names scheduled to report earnings this week like AEO, DLTR, AI & CRM. 

Looking back at last week…

Monday: Pullback After Jackson Hole Rally
Markets slipped a bit as the initial enthusiasm from Fed Chair Powell’s dovish signals cooled. The S&P dropped around 0.4%, the Dow slipped 0.8% from its record high, and the Nasdaq eased 0.2%. Tech held up reasonably well, while defensive sectors edged higher.

Tuesday: Rate-Cut Hope Meets Tariff Headwinds
Investor expectations for upcoming rate cuts stayed strong, but uncertainty lingered as recent tariff headlines continued stirring caution. Treasury yields softened, and the dollar retreated slightly, supporting equities despite the mixed signals.

Wednesday: Small Gains Close a Choppy Week
Markets recovered modestly—record levels in the Dow helped the S&P and Nasdaq hold steady. Optimism around rate cuts and strong earnings outlooks supported the bounce, even as markets stayed sensitive to geopolitical and central bank updates.

Thursday: Tech Stumbles, Ratings Play In
Tech leaders took a hit—Dell, Nvidia, Broadcom, and others pulled markets lower following earnings and valuation concerns. Despite the slump, the S&P was still on track for its fourth straight monthly gain.

Friday: Markets Pull Back, Yet End August on a High
Markets ended the week slightly lower—S&P dropped 0.6%, Nasdaq fell 1.2%, and Dow slipped 0.2%. Still, August wrapped up with gains across the board: S&P +1.9%, Dow +1–2%, and Nasdaq with solid year-to-date growth. Inflation held steady, but core measures stayed above the Fed’s target, and market volatility lingered.

Key Takeaway
It was a week of cooling off after Fed optimism drove markets higher. Tariff talk and choppy earnings weighed on tech, but broad sentiment held. August closed strong with overall gains, even as concerns about inflation and valuation flash caution for what’s next. Eyes now turn to September’s inflation data and whether the Fed actually follows through on rate cuts or signals another pause.