For the week ending September 5, 2025.

Last week was a bit of a tug-of-war—on one side, solid productivity and steady service sector growth kept things moving, but on the other, weaker job numbers and soft manufacturing data pulled sentiment the other way.

U.S. Equities

Large-cap stocks were relatively flat overall. The S&P 500 eked out a modest gain, with large-cap growth leading at 0.95%, helped by stability in technology and consumer discretionary sectors. Meanwhile, large-cap value slipped 0.36%, weighed down by weakness in financials and energy.

Mid-cap stocks had a strong week across the board. Mid-cap growth jumped 1.65%, followed by 1.30% for core and 1.18% for value. The group likely benefited from renewed interest in domestic-focused names and less exposure to global volatility.

Small caps were a bit more uneven. Small-cap value led with a 1.48% gain, while small-cap core rose 0.92%. Small-cap growth lagged, adding just 0.30%. This divergence may reflect caution in higher-beta areas as job growth data continued to weaken.

Sector Performance

Energy stocks were hit the hardest, falling 3.35%, as crude oil inventories rose and job market softness pressured demand expectations. Financials also struggled, down 1.70%, likely reacting to the sharp slowdown in job growth and the slight uptick in unemployment. Industrials slipped 0.71%, reflecting weaker-than-expected factory orders and ISM manufacturing data.

On the flip side, consumer discretionary gained 1.45%, likely supported by positive service sector growth and a slight uptick in labor force participation. Telecom rose 1.24%, while healthcare, staples, and technology all posted modest gains. Utilities fell 1.01% despite lower labor costs and stable bond yields—investors may be rotating away from defensive plays. Materials also edged lower by 0.35%.

Bonds

Bond markets were firm across the board. The U.S. Aggregate Bond Index rose 0.98%, driven by softer labor market data and cooler unit labor costs, which may have eased pressure on yields. High-yield bonds climbed 0.55%, and international bonds gained 0.53%, with global central banks likely eyeing the same labor and inflation dynamics as the Fed.

International Equities

Global equity returns were moderate. European stocks inched up 0.13%, and Pacific equities rose 0.75%. Latin America outperformed with a 0.96% gain, helped by strong commodity-linked performance in metals, even as broad commodities declined.

Commodities & Currency

Gold had a standout week, jumping 4.08%. That move likely reflects investor caution as labor market data disappointed and speculative positioning in gold increased sharply. The U.S. dollar rose slightly by 0.11%, and broad commodities fell 0.97%, dragged down by oil and weaker demand signals across manufacturing.