Wall Street Weekly Preview Inflation Fed Clues and Buffett Bets

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Find out what happening right now and get all the pieces of the puzzle on important data activity before the major news sources break the story and see what are the trends
 

•  17 Aug 2025
 

•   ADI  
   
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•   AMAT  
   
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•   BAC  
   
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•   EL  
   
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Last week ended on a strong note, with the Dow Jones climbing 1.74% thanks largely to a sharp rally in $UNH UnitedHealth after Warren Buffett’s Berkshire Hathaway disclosed a $1.5 billion stake. The S&P 500 added 0.94% and the Nasdaq gained 0.81%, while small-caps outshone them all with the Russell 2000 surging more than 3%, suggesting risk appetite is spreading beyond the mega-caps.

$UNH surged 12%, its biggest one-day jump since 2020, highlighting the power of the “Buffett effect.” The move sent health care stocks to their strongest weekly performance since 2022 and reinforced technical signals that momentum is shifting toward the sector. At the same time, Berkshire’s decision to reduce its stake in $BAC Bank of America weighed on the stock, while $INTC Intel advanced on reports that the U.S. government may step in as a strategic investor.

Not every sector shared in the momentum. Technology stocks came under pressure, with $AMAT Applied Materials tumbling more than 14% after issuing weak guidance despite beating estimates for the quarter. Analysts blamed softening demand from China and ongoing tariff uncertainty, which triggered a round of forecast cuts.

The bigger question now is the Federal Reserve. Markets are pricing in a 90% chance of a 25-basis-point rate cut in September, which would lower the benchmark rate to 4.25%. Economists, however, are divided. Some argue that sticky core inflation makes a quick pivot risky, while others believe the Fed needs to act decisively to support growth. Fed Chair Jerome Powell’s comments on Friday are expected to provide much-needed clarity on the path ahead.

Geopolitics remains part of the equation. Over the weekend, President Donald Trump met with Russian President Vladimir Putin in Alaska. While the two leaders failed to agree on a ceasefire in Ukraine, Trump pushed the idea of a broader peace settlement—an approach that drew sharp reactions from European leaders and underscored the uncertainty hanging over global markets.

This week macro calendar is packed. Investors will be watching Wednesday U.S. crude oil inventory report and the release of Fed meeting minutes, followed Thursday by jobless claims, the Philadelphia Fed manufacturing index, S&P Global PMIs, and housing sales data. Friday will bring Powell’s speech, which could set the tone for the remainder of the quarter.

Earnings season is entering its final stretch and will feature some of the market’s most closely watched names:

Monday: $PANW Palo Alto Networks.

Tuesday: $HD Home Depot, $MDT Medtronic, $KEYS Keysight Technologies, $JKHY Jack Henry.

Wednesday: $TJX TJX, $LOW Lowe’s, $ADI Analog Devices, $TGT Target, $EL Estée Lauder, $NDSN Nordson.

Thursday: $WMT Walmart, $INTU Intuit, $WDAY Workday, $ROST Ross Stores.

These results will provide a broad view of consumer spending trends, industrial resilience, and how companies are navigating an environment shaped by inflation, shifting demand, and the prospect of lower interest rates.

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