Market Behavior at the End of Summer

🗓 Friday (August 30, 2025) showed that financial markets took a brief pause after a turbulent August.

The Nasdaq, S&P 500, and Dow Jones indices declined slightly, but the month still closes in positive territory. Leading technology and AI companies are under pressure, while defensive sectors — healthcare, consumer goods, and utilities — are performing noticeably better.

Investors remain cautious, closely monitoring the combination of macroeconomic data, corporate reports, and geopolitical events.

Key Corporate Events of the Week

• Alibaba: The Chinese giant surprised markets with the announcement of its own AI chip, seen as a direct challenge to Nvidia in the local market. This attracted attention not only from China’s tech investors but also global market participants, as it intensifies competition in artificial intelligence. The potential impact for the company includes expanding its share in the high-performance chip market and new opportunities for corporate clients.

• Tesla: Shares stabilized after a recent sharp rise. The entry point remains relevant for long-term investors, especially amid new models and production expansion. Market focus is on potential revenue growth from energy storage and automation of manufacturing processes.
• Affirm and Autodesk: The companies impressed investors with strong earnings reports, supporting confidence in their stocks in the short term. Strong financial results strengthen their positions in their niches and demonstrate business model resilience even in volatile markets.

• AI and Semiconductors: The sector is currently undergoing a correction. Shares of Nvidia, Marvell, and Rambus fell, reflecting short-term market fluctuations after a rapid summer rally. Investors assess the prospects of new products, technology scalability, and the impact of global competition on company profits.

Macroeconomics and Politics

• Inflation: Inflation data met expectations, but markets continue to watch upcoming reports closely, particularly on employment and consumer spending, which may affect monetary policy.
• Fed and Trump: Former President Donald Trump’s conflict with Fed member Cook raises questions about central bank independence. Such political events create additional uncertainty, especially for short-term speculative investors.

• Currencies and Commodities: The dollar remains stable, gold holds its support level, and oil shows moderate growth amid concerns about global demand.

What Investors Should Focus On

September is traditionally considered a challenging month for markets.

Investors are advised to:

• Review positions to ensure alignment with long-term strategy.
  
  
  
  
  
• Have an exit plan in case of short-term corrections.
• Avoid overloading the portfolio with new purchases, especially in technology and AI sectors, where sentiment changes quickly.
• Monitor key support and resistance levels for assets.
• Use a watchlist to track stocks with the highest potential and risks.

💡 Analyst Advice

Do not panic over short-term volatility. Focus on fundamental company metrics and trends in key sectors. Under current conditions, it is wiser to concentrate on long-term perspective, portfolio diversification, and discipline rather than trying to chase every market movement.