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Market Recap
WEEK OF SEP. 8 THROUGH SEP. 12, 2025
The S&P 500 index rose 1.6% last week in a broad advance led by the technology sector as investors grew more hopeful for interest rate cuts. The market benchmark ended the week at 6,584.29 and is now up 1.9% for the month and 12% for the year.
Technology stocks led the weekly climb amid better-than-expected quarterly results and increased full-year guidance from Adobe (ADBE) that gave a boost to sentiment around generative artificial intelligence, RBC Capital Markets said in a note to clients.
Investors also increased their bets for the Federal Reserve's policy setting committee to cut rates at its meeting this week after data last week showed US consumer prices rose more than expected in August.
The consumer price index rose by 0.4% in August, up from 0.2% in July and representing the highest since January, the Bureau of Labour Statistics reported. A Bloomberg-polled consensus was at 0.3%. However, core inflation was steady at 0.3% in August, in line with market expectations.
The US Producer Price Index fell by 0.1% in August following a 0.7% increase in July, compared with the 0.3% gain expected in a survey compiled by Bloomberg. After excluding food and energy prices, core PPI declined by 0.1%, compared with the 0.3% gain expected and following a 0.7% gain in the previous month.
Consumer sentiment in the US deteriorated in September to the lowest level since May, according to preliminary results from a University of Michigan survey. Year-ahead inflation expectations held steady at 4.8% this month, while the long-run outlook climbed to a three-month high of 3.9% from 3.5% in August.
All but one of the S&P 500's sectors rose last week. Among the top gainers, technology rose 3.1%, utilities added 2.4%, energy climbed 1.5% and financials increased 1.3%.
Oracle (ORCL) had the largest percentage increase in the technology sector, jumping 26%. OpenAI signed a deal with Oracle to purchase $300 billion of its computing power over a period of about five years, The Wall Street Journal reported, citing people familiar with the matter.
In utilities, Vistra (VST) and NRG Energy (NRG) had the highest percentage gains, up 12% each.
The energy sector's climb came as crude oil futures also rose. Top gainers included Texas Pacific Land (TPL), up 5.4%, and Kinder Morgan (KMI), up 3.7%.
The lone sector in the red, consumer staples, slipped 0.2%. The hardest-hit stocks in the sector included shares of Constellation Brands (STZ), down 6%, as Barclays downgraded the beverage company's stock to equal weight from overweight.
This week, earnings reports are expected from companies including General Mills (GIS), FedEx (FDX), Lennar (LEN) and Darden Restaurants (DRI).
Economic data will include August retail sales, industrial production, housing starts and building permits. All eyes will be on the Federal Open Market Committee's interest rate decision at the conclusion of its two-day meeting on Wednesday.
