August 2025 Market Snapshot
Rosemeyer Management Group
August in Review
The month of August saw solid returns across most major asset classes. U.S. equities advanced by 2% led by a robust month for small-cap stocks and value stocks indicating a broad market rally. This was in spite of a wobbly month for tech stocks as investors became somewhat over the profit potential on artificial intelligence (AI) investment. International equities led by Japan had a strong month on the heels of the U.S.-Japan trade deal. Markets responded positively to Fed Chair Jerome Powell’s mid-month remarks which indicate an interest rate cut is likely in the very near future. Bond markets also rallied on the news with the US Aggregate Bond Index returning over 1% in August.
| Index | 1 Month | YTD |
|---|---|---|
| Dow Jones Industrial Average | 3.42% | 8.30% |
| Standard & Poor’s 500 Average | 2.03% | 10.79% |
| Russell 2000 (Small Cap Index) | 7.14% | 7.06% |
| Total U.S. Stock Market | 2.32% | 10.63% |
| MSCI ACWI ex USA (Intl. Index) | 3.47% | 21.64% |
| Barclay’s U.S. Agg. Bond Index | 1.20% | 4.99% |
Source: Morningstar
Looking Forward: What’s Ahead for Q3 & Beyond
As we move into September, investors will be focused on this month’s Federal Open Market Committee meeting. Another weak jobs report for July confirms suspicions of a labor market that is weakening. Fed Chair Powell in his Jackson Hole speech indicates the balance of economic risks following a subdued July inflation report has shifted the Fed’s focus from inflation to employment. Markets now view a September interest rate cut of at least 0.25% as all-but-guaranteed, which may benefit longer-duration fixed income investments.
Aside from the labor outlook, there is an array of economic data that has led to investor optimism. Corporate earnings across the entire market has continued to beat investor expectations amidst tariff uncertainty. August Purchasing Managers’ Index (PMI) surveys revealed steadily expanding business activity especially for the manufacturing sector, which could be fueled further if interest rates move lower. Tariff news has been relatively tame lately aside from the 50% punitive tariffs imposed on India by the Trump administration for buying Russian oil and weapons.
Markets will continue to digest economic news as we progress through September, which historically is one of the worst months of the year for the stock market.
On a Personal Note
We are thrilled to announce the engagement of one of our advisors, Brooklyn Strang, to her high school sweetheart Lucas! Brooklyn & Lucas plan on getting married next year near their hometowns surrounded by friends and family. We are excited to celebrate the couple and welcome Lucas as a member of the RMG family. We wish them many blessings for years to come!
Rosemeyer Management Group
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© J.P. Morgan Asset Management, September 1, 2025
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