Weekly Market Update (Sep 07, 2025)

Market Hedwig
Sep 7, 2025
2 min read

HIGHLIGHTS

The latest job report reinforced the weaker labor market trend. Markets believe it makes a stronger argument for Fed cuts and lowers the sensitivity to the upward surprise in inflation.

Fed: Fed commentary continues to signal rate cuts. After the dovish pivot at Jackson Hole, more Fed officials have shown support for rate cuts in recent weeks. Combined with the weakening labor market, there is little to prevent Fed from cutting rate in the coming meeting.

Gold: Gold price hit an all-time high, following the weak job report. Investors are looking for safety amid this outlook. Markets view gold as a solid core holding, supported by strong central bank demand, diversification and prospective rate cuts.

China: The domestic AI development in China remains robust, mainly driven by the clear policy direction and capital expenditure plan. Deepseek is also utilizing local chips to train model, indicating the reduction in reliance on foreign technology..

MARKETS

Nasdaq	21,700.39	+1.14%
S&P 500	6,481.50	+0.33%
Dow	45,400.86	-0.32%
10-Year	4.09%	-14bps
Brent	65.50	-2.93%
DXY	97.74	-0.12%

*Data as of market close. 5-day change ending on Friday.

VIEW FROM THE STREET

Equity

Goldman Sachs: The economy has moved through the worst of the tariff impacts. We expect the incoming fed rate cut and the growth acceleration in next year could support further rally in US equities.

UBS: Easing Fed policy and strong earnings momentum could boost equities despite more demanding valuations.

Fixed Income

Standard Chartered: US yields are likely capped. Although the upward pressure has been strong recently, the 30Y US treasury yields have not sustainably stayed near 5%. This cap is expected to hold if there is no inflation shock.

Goldman Sachs: The US front-end curve is more balanced after the latest job report. If there is no further decisive push from the weaker fundamental, there is limited room for the belly and long-end curve to move significantly.

Economy

UBS: Consumer spending is robust, supported by the minimal job losses. Fed rate cuts can boost cyclical assets, combined with the corporate investment incentives in One Big Beautiful Bill.

J.P. Morgan: Broad adoption of AI could drive productivity significantly. In short term, the reliance on secular tailwinds, such as AI investment, could mask weaknesses in the cyclical parts of the economy.

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DISCLOSURE

This newsletter is meant for informational purposes only and is not investment advice. Always consult a licensed investment professional before making important investment decisions. Advertising and sponsorship do not influence editorial content or decisions. Market Hedwig is not responsible for the promises made or the quality or reliability of the products or services offered in any advertisement.