3 Economic Reports That Could Affect Your Portfolio This Week, August 25-29, 2025

Stocks rebounded sharply on Friday, erasing earlier losses and pushing the Dow Jones Industrial Average to a record high with a 1.53% surge. The S&P 500 edged up 0.27% for the week, while the Nasdaq-100 declined 0.90% as AI-related stocks continued their sell-off.

Market volatility dominated the week, with the S&P 500 enduring a five-day losing streak before Friday's reversal. Tech megacaps and semiconductor stocks led the downturn as investors scrutinized elevated valuations ahead of Fed Chair Jerome Powell's pivotal Jackson Hole speech.

A defensive rotation emerged during the downturn, with capital flowing into slower-growing, profitable names at sustainable multiples. This shift propelled the Dow's outperformance, though analysts cautioned the rally remains fragile amid macroeconomic uncertainty.