Weekly Market Commentary September 2, 2025

Last week began with a focus on the housing market, where housing starts for July exceeded expectations, reaching 1.428 million new construction starts. However, building permits issued during the same month fell short of forecasts. Existing home sales also outperformed projections for July. Meanwhile, the labor market was another focal point, with initial jobless claims edging higher to 235,000 for the prior week, breaking the trend of steadily declining claims over the past two months. Economists will be watching closely to see if this shift continues. On the manufacturing front, the manufacturing Purchasing Managers’ Index (PMI) came in stronger than anticipated at 53.3, up from last month’s reading of 49.8, while the  services PMI also surpassed expectations at 55.4. Additionally, Fed Chair Jerome Powell delivered remarks on Friday at Jackson Hole, signaling a potential shift in monetary policy, with strong indications that the Fed is preparing for interest rate cuts as early as September.

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