Markets rally on Powell’s Jackson Hole speech
Last week began quietly in financial markets, with many participants seemingly waiting for one event: Federal Reserve Chairman Jerome Powell’s remarks at the central bank’s annual Jackson Hole Symposium. By the end of the week, that speech provided the spark that pushed U.S. equity markets to fresh record highs.
Powell Signals Possible Rate Cut
Chief Investment Officer Thierry Hasse
Markets responded swiftly. The Dow Jones Industrial Average surged to an all-time high, closing Friday at 45,631.74. Treasury yields moved more cautiously, with the 10-year yield falling to 4.25%, as bond investors signaled that the Fed will likely remain careful and data-dependent until the true impact of tariffs becomes clearer.
Retailers Get Creative with Tariffs
Earnings from major retailers such as Walmart, Home Depot and Lowe’s added another dimension to the week’s market narrative. Walmart’s chief financial officer, John David Rainey, described a mix of strategies to manage higher tariff costs. In some cases, Walmart will absorb them, while in others it will pass the higher costs along to consumers. Importantly, he emphasized the company’s commitment to keeping prices as low as possible.
Across the industry, retailers are diversifying sourcing, renegotiating with suppliers and even substituting American-made goods to mitigate tariff pressures. Consumer spending has so far remained resilient, defying earlier fears that higher duties would weigh heavily on household budgets.
A Quiet Week Ahead — Sort Of
With the Fed’s September meeting still three weeks off and second-quarter earnings winding down, this final week of August often feels quieter. Yet it may prove more dynamic than it appears.
This week brings critical earnings from NVIDIA (Aug. 27) and Dell Technologies (Aug. 28) — two companies influential to the tech and AI space. NVIDIA’s report, in particular, has the potential to reshape sentiment around the AI growth trade, while Dell’s results will offer insight into enterprise demand for AI-driven servers and broader technology adoption.
Adding another layer of significance is Friday’s release of the Federal Reserve’s preferred inflation measure — the Core Personal Consumption Expenditures (Core PCE) index. As a critical input to policy decisions, the data could recalibrate expectations for interest-rate movement in the final quarter.
Even as the traditional “pause” of late summer sets in — with schools resuming and routines shifting — the markets may step back only to face some key accelerations and have their attention drawn forward instead.
At Elevage Partners, we anticipate — we prepare.
The information contained herein represents the views of Elevage Partners at a specific point in time and is based on information believed to be reliable. No representation or warranty is made concerning the accuracy of any data compiled herein In addition, there can be no guarantee that any projection, forecast, or opinion in these materials will be realized. Any statement non-factual in nature constitutes only current opinion which is subject to change. These materials are provided for informational purposes only and do not constitute investment advice. Any reference to a security listed herein does not constitute a recommendation to buy, sell, or hold such security. Past performance is no guarantee of future results. The historical returns of any securities and/or sectors mentioned in this commentary are not necessarily indicative of their future performance.