From Jackson Hole to Wall Street Highs: A Week of Surprises

Daniel Ledenev
Aug 23
5 min read

Updated: Sep 14

👋 Welcome Back Investors! (August 18 to 22, 2025)

What a week! Jerome Powell dropped some hints about possible rate cuts at Jackson Hole, and Wall Street loved it, the Dow even scored its first record close of the year. Big retailers like Walmart and Target kept investors guessing, while Zoom surprised with strong results and kept the “work-from-anywhere” crowd happy. Gold stayed shiny but stuck, and global headlines added just enough drama to keep things interesting. Summer might be winding down, but the markets are still turning up the heat.

📈 Markets Surge as Powell Hints at Rate Cuts

Wall Street ended the week on a high after Fed Chair Jerome Powell used his Jackson Hole speech to hint that a September rate cut could be in play. The Dow jumped 850 points on Friday to close at a record high for 2025, while the S&P 500 rose nearly 1% and the Nasdaq gained 0.8%. The rally came after a choppy week marked by mixed retail earnings, global trade jitters, and cautious corporate outlooks, leaving investors eager for clarity from the Fed. Powell struck a more balanced tone, noting inflation has eased closer to the Fed’s 2% goal and signaling that the central bank is prepared to act if growth slows further. Markets cheered the shift from the “higher for longer” stance, sending bond yields lower, the dollar weaker, and stocks broadly higher. Earnings added fuel: Zoom surged on a strong quarter, Ubiquiti leapt on a dividend hike and buyback, while Intuit and BJ’s Wholesale slid on softer guidance. Retail heavyweights Walmart, Target, and Home Depot painted a mixed picture of consumer strength. Commodities were quieter, with gold stuck below $3,400 and oil still pressured by oversupply worries. Overseas, Hong Kong stocks notched a third straight weekly gain, while European markets stayed cautious ahead of geopolitical developments. For investors, Powell’s remarks were just enough to reignite optimism — though the message remains clear: the Fed is listening, but the data will decide the next move.

💼 Earnings in Focus: Mixed Signals from Big Names

Earnings season added extra flavor this week as a handful of corporate heavyweights reported results. Zoom was the standout, jumping double digits after delivering stronger than expected quarterly results and raising its outlook, proving remote-work demand still has legs. Ubiquiti stunned investors with a 31% surge after boosting its dividend, announcing a $500M buyback, and topping sales forecasts. But not all results impressed. Intuit slipped after offering cautious guidance for 2026 despite beating estimates, while Workday also fell as its forward outlook underwhelmed. BJ’s Wholesale dropped more than 8% on weaker-than-expected revenue and comparable store sales, raising questions about consumer strength. Meanwhile, retail giants Walmart, Target, and Home Depot delivered a mixed bag: strong in some categories, but overall results pointed to a more cautious consumer.

With markets rallying on Powell’s dovish tone, earnings provided both momentum and reality checks, reminding traders that corporate performance still matters, especially as Wall Street now shifts its focus to Nvidia’s upcoming blockbuster report next week.

📊 Markets Rally as Powell Turns Dovish, Eyes Shift to Nvidia

Wall Street charged higher to close the week after Fed Chair Jerome Powell struck a more dovish tone in his Jackson Hole remarks, hinting that a rate cut could be on the table as early as September. The Dow surged to its first record close of 2025, while the S&P 500 and Nasdaq also ended solidly higher, lifted by cooling inflation data and renewed hopes for easier policy. Bond yields slid and the dollar weakened as traders boosted bets on a 50 basis point cut next month. But the spotlight is already shifting to what’s next. Nvidia’s upcoming earnings are being watched as a critical test for the market’s AI-fueled rally. Analysts say strong results could reinforce tech leadership and extend the summer rally, while any stumble risks shaking confidence after months of heavy gains in mega cap growth stocks. Combined with a busy earnings calendar and ongoing geopolitical headlines, the week ahead promises to be another test of whether optimism can hold in the face of rising uncertainty.

💱 Dollar Steady as Markets Brace for Ukraine Summit

Currency markets held their breath this week as investors waited for outcomes from a high stakes Ukraine summit in Washington, where President Trump met with European leaders and President Zelenskyy to discuss new security guarantees. The U.S. dollar traded in a tight range, with traders cautious ahead of potential geopolitical headlines that could ripple through global markets.

The greenback’s pause reflected broader uncertainty: while expectations of Fed rate cuts weighed on yields, demand for safe-haven assets kept the dollar from sliding too far. Analysts noted that any breakthrough, or breakdown in the summit could quickly jolt FX markets, especially against the euro and yen. For now, stability won out, but investors remain on alert that geopolitics, not just monetary policy, could dictate the dollar’s next big move.

🟡Gold Stalls Below $3,400 Ahead of Powell’s Speech

Gold prices struggled for direction this week, hovering under the $3,400 mark as traders braced for Fed Chair Jerome Powell’s remarks at Jackson Hole. After weeks of strong gains, the precious metal lost momentum as expectations for a rate cut pulled Treasury yields lower but also injected caution into markets. Analysts noted that while lower interest rates generally support gold, the metal’s rally has already priced in much of the optimism, leaving it vulnerable to profit-taking. Technical charts showed stiff resistance around $3,400, with support levels holding near $3,350. Until Powell’s guidance offered clarity, gold traded sideways, reflecting investor hesitation.

For now, the yellow metal remains caught in a tug of war: policy expectations pulling one way, and uncertainty over global growth and safe-haven demand pulling the other. The next move, traders believe, will hinge on whether the Fed’s tone cements a dovish pivot or keeps markets guessing.

👀 Stocks to Watch: What This Week’s Moves Reveal

Markets roared into the weekend after Jerome Powell’s dovish Jackson Hole speech reignited rate-cut hopes and sent the Dow to its first record close of 2025. While tech cooled midweek, investors found plenty to trade on in earnings, corporate surprises, and policy signals. From Zoom’s earnings pop to Ubiquiti’s shock dividend boost, here are the stocks that made headlines this week:

Zoom (ZM) – Surged over 13% after reporting stronger-than-expected earnings and raising full-year guidance, proving remote-work demand is far from fading.
Ubiquiti (UI) – Jumped more than 30% after announcing a dividend hike, $500M buyback, and stronger revenue, stunning even bullish analysts.
Intuit (INTU) – Fell around 5% despite beating estimates, as its cautious 2026 outlook spooked investors.
Workday (WDAY) – Dropped nearly 3% after guiding lower than expected, even as Q2 results came in solid; its $500M AI acquisition added intrigue.
BJ’s Wholesale (BJ) – Slid 8% on weak sales and revenue misses, raising concerns about consumer resilience.
Walmart, Target & Home Depot (WMT, TGT, HD) – Delivered mixed results that showed strong categories but an overall cautious consumer backdrop.

🛎️That’s a Wrap!

That’s it for this week’s recap, thanks for tuning in! Markets finished strong after Jerome Powell’s Jackson Hole speech fueled hopes of a September rate cut, sending the Dow to its first record close of 2025. Earnings kept things lively as Zoom popped on a big beat, Ubiquiti stunned with a dividend hike and buyback, while Intuit, Workday, and BJ’s stumbled on softer outlooks. Retail heavyweights Walmart, Target, and Home Depot gave a mixed read on consumer spending, keeping traders cautious. Gold hovered below $3,400, oil stayed under pressure, and overseas, Hong Kong stocks logged a third straight weekly gain. With Nvidia’s earnings up next and Fed speculation swirling, markets head into the final stretch of August still buzzing.

Until then, stay focused and stay curious. Catch you next week 👋