The Markets (as of market close September 26, 2025)
Despite a rebound on Friday, stocks ended last week lower, breaking a multi-week rally. New tariffs on certain imports and mixed Federal Reserve signals weighed on sentiment. Tech and health care stocks saw notable declines, while Treasury yields inched higher from recent lows. Crude oil posted its largest weekly gain in over three months on rising geopolitical tensions.
Last Week’s Economic News
- GDP rose at a 3.8% annual rate in Q2, reversing a 0.6% decline in Q1. Imports fell sharply, while consumer spending climbed 2.5%.
- Personal income and disposable income each increased 0.4% in August. Consumer spending rose 0.6%, while the PCE price index gained 0.3% and core prices 0.2%. Year-over-year, consumer prices rose 2.7%.
- New single-family home sales surged 20.5% in August, up 15.4% from a year ago. The median price was $413,500, 1.9% higher than last August.
- Existing home sales slipped 0.2% in August but were 1.8% above last year. The median price was $422,600, up from August 2024.
- Durable goods orders rose 2.9% in August after two months of declines, led by transportation equipment (+7.9%). Orders were up 7.1% from last year.
- The trade deficit in goods narrowed 16.8% in August to $85.5 billion as both imports and exports declined.
- Gasoline averaged $3.173 per gallon on September 22, below year-ago prices.
- Initial jobless claims fell to 218,000 for the week ended September 20. Continuing claims dipped to 1.93 million.
Eye on the Week Ahead
This week’s focus is on the September jobs report, with hiring expected to remain weak after several months of stalled employment growth.
Have a nice week!
Sincerely,
Robert G. Carpenter
President & CEO
Baltimore-Washington Financial Advisors