Markets finished the week higher after Fed Chair Jerome Powell signaled a likely September rate cut at Jackson Hole, sparking a rally that erased earlier losses. Small caps led the charge, with the Russell 2000 up 3.3%, while the S&P 500 gained 0.3% and the Nasdaq slipped 0.6% amid weakness in the “Magnificent 7” and major retailers. Walmart and Target’s disappointing results highlighted tariff-related pressures, while Oil & Gas stocks topped sector performance. Treasury yields fell, crude and gold edged higher, and breadth was strong with advancing issues outpacing decliners nearly 4-to-1. This week, Nvidia’s earnings and a slate of retail reports take center stage, but the main event comes Friday with the July PCE inflation reading. A hotter-than-expected print could temper Fed cut expectations, while a softer result may fuel investor optimism heading into Labor Day.

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