Markets Rebound After Friday’s Sell-Off
Markets opened the week higher after last Friday’s sharp drop. On Tuesday, the ISM Services PMI, which tracks about two-thirds of the U.S. economy, came in slightly below expectations, signaling slower growth. Jobless claims ticked higher, hinting at a cooling labor market. Strong Q2 productivity growth of 2.4% suggests easing inflation pressures, boosting market expectations for a September Fed rate cut to over 80%.
Tariffs Take Effect, Executive Order Expands 401(k) Options
New tariffs took effect Thursday, August 7, but markets stayed calm: the S&P 500 held steady, the Nasdaq saw small gains, and the Dow dipped 0.5%.
That same day, President Trump signed an executive order directing federal agencies to explore allowing alternative investments — such as private equity and cryptocurrency — in 401(k) plans. While no changes are immediate, this could open new retirement investment options as soon as next year.
Crypto markets rallied following the announcement, with Bitcoin and Ethereum pushing toward record highs.
Nasdaq Hits Fresh All-Time High
Stocks closed strong Friday, with all three major indices posting weekly gains. The Nasdaq reached a new all-time high, underscoring tech’s continued momentum.