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NAGA Weekly Recap August 25 - 29, 2025

Markets flipped this week after Powell’s Jackson Hole remarks signaled that a September rate cut is firmly in play, reigniting the “Fed pivot” narrative and sending traders back into growth and high-beta names. The shift gave equities fresh momentum, but turbulence hasn’t faded—Bitcoin slid to a seven-week low near $111K on whale selling and liquidations before finding support as institutional demand stepped in. Layer in political friction, with Trump sparring against the Fed, and the outlook grows even more complex. Futures markets now point to not just one, but potentially several cuts ahead, leaving the pivot trade alive and well, though the path forward promises plenty of twists.

Markets Chasing Risk, Dodging Uncertainty Markets leaned into the Fed pivot narrative this week, but the backdrop stayed anything but calm. Equities found a floor as traders rotated into growth plays, oil steadied on supply buzz, and gold held its ground as a safety net. The dollar finally cooled, giving higher-yielding currencies room to breathe, while crypto proved stubbornly resilient with Bitcoin clinging to key levels. Bottom line: traders are hungry for risk, but policy and politics still cast a long shadow heading into September. Stocks Equities Hold Firm as Traders Eye the Macro Picture US stocks ended the week on solid footing, with the Dow and S&P 500 shrugging off tech’s pause and holding gains. Rotation ruled the day—money moved into cyclicals and value plays while high-flying growth names caught their breath. Broader market participation is picking up, signaling that the rally isn’t just riding on a few mega-cap giants. As we move past Jackson Hole, eyes are firmly on cyclical sectors, with traders betting on policy signals and macro momentum to drive the next leg. Commodities Oil and Gold Test the Waters Amid Caution Commodities tread carefully this week, with oil slipping as OPEC+ updates collided with lingering demand worries. Gold gave back a bit of ground as a firmer dollar reflected ongoing uncertainty around the Fed. Traders are keeping a close eye on macro data and geopolitical sparks—especially out of the US and China—that could shake markets and send commodity prices swinging. Forex FX Markets Eye Fed Moves and Political Noise The dollar flexed some muscle this week, driven by chatter of Fed easing and ongoing political uncertainty around the central bank. The euro hovered around USD 1.163–1.165 before dipping briefly below 1.15, while the yen traded near ¥147–148. Traders are zeroed in on upcoming US payrolls and inflation data, knowing these releases could steer the rate outlook and shake currency markets in the weeks ahead.

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Publication date:

2025-09-01 11:08:46 (GMT)

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