Stock Market Analysis for August 28, 2025

As the market prepares to open today, let’s review the events that influenced last week and consider what lies ahead.

Last Week’s Overview

Last week, the stock market showed volatility, driven by several key factors:

1. Federal Reserve’s Interest Rate Announcement: On August 25, the Federal Reserve maintained interest rates but signaled potential future hikes in response to persistent inflation concerns, impacting market sentiment.
2. Corporate Earnings Reports: Major companies like Apple Inc. (AAPL) and Microsoft (MSFT) reported quarterly earnings that met or exceeded expectations, which helped boost tech stocks.
3. Geopolitical Developments: Renewed tensions in the South China Sea have raised concerns about trade relations, causing fluctuations in defense and tech stocks.

Upcoming Events

Looking ahead, several crucial events may shape market trends next week:

• Economic Data Releases: Investors should monitor the upcoming non-farm payroll data expected to be released on September 3, as employment figures could influence Fed policy.
• Consumer Sentiment Index: Scheduled for September 1, this index could provide insights into consumer spending trends.
• Tech Conferences: The annual IFA in Berlin starts next week, which could spotlight innovations from leading tech firms and influence stock movements in the sector.

Recommendations

Buy:

• SPDR S&P 500 ETF Trust (SPY): The fund offers exposure to a broad range of companies, positioning investors for long-term gains considering the potential for recovery after recent volatility.
• NVIDIA Corporation (NVDA): With the continuous growth of AI and demand for GPUs, NVIDIA’s outlook remains robust, making it a strong buy at current levels.

Sell:

• Zoom Video Communications (ZM): Given the changing landscape of work and competition in the video conferencing space, it’s prudent to consider selling Zoom for profit-catching, especially if shares continue to stagnate.

Conclusion

As we head into a new week, the market will likely remain sensitive to economic indicators and geopolitical developments. Investors are encouraged to keep a close watch on the forthcoming job data and adjust their portfolios accordingly.