Stocks were mixed last week despite a powerful Friday rally sparked by Federal Reserve Chair Jerome Powell, who opened the door to adjusting short-term interest rates.

The Standard & Poor’s 500 Index picked up 0.27 percent while the Nasdaq Composite Index lost 0.58 percent. The Dow Jones Industrial Average rose 1.53 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, increased 0.80 percent.^1,2

All Eyes on Powell

Stocks traded in a narrow band to start the week as investors awaited fresh economic data and comments from Fed officials at their annual symposium in Jackson Hole, Wyoming.

After a big retailer reported quarterly results on Tuesday and gave encouraging guidance, stocks pushed higher. But markets took a breather later in the day as pressure on megacap tech and chipmakers led the Nasdaq and the broader market lower.³

The S&P 500 and Nasdaq fell after minutes from the Federal Reserve's July meeting were published; they revealed that most Federal Open Market Committee (FOMC) members were more concerned about inflation than the job market.⁴

On Friday, markets rebounded after Fed Chair Powell opened the door to a rate move at the Fed’s September meeting. The day’s gain was strong enough to regain the week’s lost ground for the S&P and nearly all of it for the Nasdaq—and put the Dow solidly ahead for the week.⁵

Watch the Rotation

Investors appeared to rotate out of megacap tech as some expressed concern about valuations and the durability of the AI-driven rally. Two facts helped support this observation: the S&P fared better than the tech-heavy Nasdaq for the week, and the Russell 2000 Index of small-cap stocks (+3.25 percent) beat all three major stock averages.⁶

The Federal Reserve also rotated a bit. In contrast to the Fed’s July meeting—where inflation was the bigger concern for most Committee members—Fed Chair Powell’s Friday morning speech at Jackson Hole revealed the FOMC was now more concerned with the jobs market.⁷

This Week: Key Economic Data

Monday: New Home Sales. Dallas Fed President Lorie Logan and New York Fed President John Williams speak.

Tuesday: Durable Goods. Case-Shiller Home Price Index. Treasury Buyback Announcement. Consumer Confidence.

Wednesday: Survey of Business Uncertainty. Richmond Fed President Thomas Barkin speaks.

Thursday: Gross Domestic Product (GDP). Jobless Claims (weekly). Pending Home Sales. Corporate Profits. Fed Balance Sheet.

Friday: Personal Consumption & Expenditures (PCE) Index. International Trade Balance in Goods. Retail & Wholesale Inventories. Consumer Sentiment.

^{Source: Investors Business Daily - Econoday economic calendar; August 22, 2025
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.}

This Week: Companies Reporting Earnings

Wednesday: NVIDIA Corporation (NVDA), CrowdStrike (CRWD)

Thursday: Dell Technologies Inc. (DELL)

^{Source: Zacks, August 22, 2025. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.}

“To expect truth to come from thinking signifies that we mistake the need to think with the urge to know.”

– Hannah Arendt

Meet the Taxpayer Advocate Service

Did you know an independent organization within the IRS is fighting for your rights as a taxpayer? The Taxpayer Advocate Service (TAS) protects taxpayers' rights, allowing all taxpayers to be treated fairly and know and understand their rights under the Taxpayer Bill of Rights. Here are some things to know about TAS:

• TAS can help taxpayers resolve problems they haven't been able to settle with the IRS on their own.
• The service is free.
• TAS helps all taxpayers and their representatives, including individuals, businesses, and exempt organizations.
• If taxpayers qualify for TAS help, an advocate will be with them at every turn and do everything possible to assist throughout the process.
• TAS also handles large-scale problems that affect many taxpayers.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS⁸

What is Compostable?

Composting is a great way to go green and keep more waste out of landfills that don’t need to be there. It has many benefits, including waste management and reduction, soil enhancement, and greenhouse gas reduction.

Plus, composting doesn’t have to be hard! Let’s break down what is compostable to help you understand where to start. There are two types of compostable waste, green and brown:

• Green materials are nitrogen-rich, like live plant material (ex, grass clippings) and fruit/veggie waste.
• Brown materials like dead plant matter, bread, cardboard, or wood are carbon-rich.

As you can see, starting composting is easy. You don’t need a complicated setup or special process. These two compost categories provide the foundation for everything you need to know.

Tip Adapted from Sustainable Jungle⁹

I’m usually standing on a city sidewalk, and I’ll always stand by your car. But if you don’t feed me, you may get into trouble. What am I?

Last Week's Riddle: Create a 13-letter word using all 13 of the following letters: O A I I S T T R R D N A M.
Answer: ADMINISTRATOR.

Stocks rose last week despite mixed signals on inflation as investors kept one eye on the Fed’s September meeting.

The Standard & Poor’s 500 Index advanced 0.94 percent, while the Nasdaq Composite Index added 0.81 percent. The Dow Jones Industrial Average rose 1.74 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, increased 2.16 percent.^1,2

Third Gain in Four Weeks

Stocks posted modest losses to start the week as investors braced for July consumer inflation reports. The White House’s executive order on Monday extending the tariff deadline for China by 90 days failed to move markets in the other direction.³

Stocks then staged a two-day rally following the latest Consumer Price Index (CPI) report, which showed July inflation held steady over the prior month—beating expectations. The inflation news led some investors to move into small-cap stocks, with the Russell 2000 Index of small-cap stocks rising 5 percent over Tuesday and Wednesday.⁴

However, markets slipped Thursday as investors dug into the Producer Price Index (PPI) for July, which showed wholesale inflation hit a 3-year high last month; this was the third weekly gain in the past four weeks for each of the three major averages; the S&P and Nasdaq advanced four of the last five weeks.^5,6,7

A Mixed Inflation Story

Inflation continues to give mixed signals, which can unsettle investors who anticipate the Fed adjusting rates at its September meeting.

Last week’s CPI report showed that “headline” (retail) inflation held steady. Stocks rose in response, even though core inflation—excluding volatile food and energy prices—was hotter than economists expected.

Two days later, the PPI report revealed that inflation began to creep into wholesale prices in July. Stocks fell in response as investors processed the conflicting reports.^8,9

This Week: Key Economic Data

Monday: Homebuilder Confidence Index.

Tuesday: Housing Starts. Building Permits. Federal Reserve Official Michelle Bowman speaks.

Wednesday: Minutes from Fed’s FOMC July Meeting. Federal Reserve Official Christopher Waller and Atlanta Fed President Raphael Bostic speak.

Thursday: Weekly Jobless Claims. Services & Manufacturing PMI Composite. Existing Home Sales. Leading Economic Indicators. 30-Year TIPS (Treasury Inflation-Protected Securities) Auction. Fed Balance Sheet. Atlanta Fed President Raphael Bostic speaks.

Friday: Fed Chair Jerome Powell speaks.

^{Source: Investors Business Daily - Econoday economic calendar; August 15, 2025
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.}

This Week: Companies Reporting Earnings

Monday: Palo Alto Networks, Inc. (PANW)

Tuesday: The Home Depot, Inc. (HD)

Wednesday: The TJX Companies, Inc. (TJX), Lowe’s Companies, Inc. (LOW), Analog Devices, Inc. (ADI)

Thursday: Walmart Inc. (WMT), Intuit Inc. (INTU)

^{Source: Zacks, August 15, 2025. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.}

“If you would be loved, love and be lovable.”

– Benjamin Franklin

Learn About ABLE Accounts

People with disabilities can use an Achieving a Better Life Experience (ABLE) account to help pay qualified disability-related expenses. Here are some things to know about ABLE accounts:

• This tax-advantaged savings account doesn't affect their eligibility for government assistance programs.

• ABLE account-designated beneficiaries may be eligible to claim the saver's credit for a percentage of their contributions.
• Eligible beneficiaries must be 18 years old at the close of the taxable year, not dependent or full-time students, and meet the income requirements.
• Families may roll over funds from a 529 plan to another family member's ABLE account.
• Disability-related expenses include housing, education, transportation, health, prevention and wellness, employment training and support, assistive technology, and personal support services.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS¹⁰

Infused Water Recipes

Staying hydrated is essential for our overall health, and these fun, delicious infused water options make drinking water a little more fun. Bonus points if you try them with sparkling water for a bit of fizz!

• Honeydew, cucumber, and mint
• Watermelon, kiwi, and lime
• Mango, raspberries, and ginger root
• Blackberries, orange, and ginger root
• Grapefruit, pomegranate, and mint
• Pineapple, coconut, and lime
• Blueberries, lemon, and rosemary
• Strawberries, lemon, and basil

To infuse your water with these delicious combinations, just put all the ingredients in a pitcher, add water, and remove the fruits, veggies, or herbs in 24 hours. Drinking water has never been tastier or more beautiful.

Tip Adapted from Culinary Hill¹¹

Create a 13-letter word using all 13 of the following letters: O A I I S T T R R D N A M.

Last Week's Riddle: What is worn by the foot and often bought by the yard?
Answer: Carpet.

Blue-Ringed Octopus
Lembeh Straits, Indonesia

Stocks rebounded last week as investor optimism for a September rate adjustment and strong Q2 corporate results overcame the rollout of fresh tariffs.

The Standard & Poor’s 500 Index rose 2.43 percent, while the Nasdaq Composite Index gained 3.87 percent. The Dow Jones Industrial Average added 1.35 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, increased 2.77 percent.^1,2

Stocks Gyrate

Stocks pushed higher to start the week, with major averages gaining between 1.3 percent and 2 percent—their best day since May. Investors seemed more optimistic for a rate move after the weaker-than-expected July jobs report.^3,4

Stocks rose again midweek after the White House confirmed a mega-cap tech company would invest $500 billion more in domestic manufacturing. News of additional tariffs on India was greeted with a muted reaction from investors.⁵

The updated tariffs previously announced by the White House went into effect on Thursday. Markets initially rose in early trading but then came under pressure as the day continued.⁶

But the S&P and Dow rose again on Friday, ending the week with solid gains. The tech-heavy Nasdaq ended the week with a record close.⁷

Economy Watch

Services comprise 70 percent of the economy, so Wall Street closely monitors the Institute for Supply Management’s Services Index.

So, news on Tuesday that growth in services came below economists’ expectations was a bit of a concern. However, investors seemed to quickly look past the number and focus more on the 122 S&P 500 companies that reported earnings last week.^8,9

This Week: Key Economic Data

Tuesday: NFIB Small Business Optimism Index. Consumer Price Index (CPI). Federal Budget.

Wednesday: Atlanta Fed President Raphael Bostic speaks. Chicago Fed President Austan Goolsbee speaks.

Thursday: Weekly Jobless Claims. Producer Price Index (PPI). Fed Balance Sheet. Richmond Fed President Tom Barkin speaks.

Friday: Retail Sales. Industrial Production. Import & Export Prices. Business Inventories. Consumer Sentiment.

^{Source: Investors Business Daily - Econoday economic calendar; August 8, 2025
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.}

This Week: Companies Reporting Earnings

Wednesday: Cisco Systems, Inc. (CSCO)

Thursday: Applied Materials, Inc. (AMAT), Deere & Company (DE), NetEase, Inc. (NTES)

^{Source: Zacks, August 8, 2025. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.}

“We should all do something to right the wrongs that we see and not just complain about them.”

– Jacqueline Kennedy Onassis

Using the IRS2Go App

Did you know that the IRS has an app that makes checking some things off your tax to-do list easy? Using the app, you can:

• Check your refund status. Your refund status is available within 24 hours after the IRS receives your e-filed return (or four weeks after receiving a paper return).
• Access IRS Free File. Free File is a tax prep software for taxpayers whose total adjusted gross income was $84,000 or less.
• Find payment options, including IRS Direct Pay, which allows you to pay tax bills directly from your bank account.
• Get tax help.
• Stay up to date with updates from the IRS.This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional. 

Tip adapted from IRS¹⁰

Satisfy Your Sweet Tooth With Dates

Do you have a sweet tooth but want to limit refined sugar? Dates are just the answer! These nutrient-rich powerhouses are sweet, succulent, and good for you!

Dates are high in fiber, potassium, magnesium, and Vitamin B6, among many other nutrients. They are also high in antioxidants and may promote brain, bone, and blood sugar control. 

Dates are easy to add to your diet. Snack on them, add them to dishes as a natural sweetener, or blend them in a smoothie. These nutritious and delicious treats are perfect for kicking cookies and cakes without giving up an indulgent taste.

Tip Adapted from Healthline¹¹

What is worn by the foot and often bought by the yard?

Last Week's Riddle: They can run side by side for thousands of miles; they are made of steel. While they constantly touch the ground, they seldom meet or touch each other. What are they?
Answer: Railroad tracks.

Lotus Temple
Delhi, India

Stocks fell last week as investors assessed progress on trade negotiations, new U.S. tariffs, and fresh data on the U.S. economy.

The Standard & Poor’s 500 Index fell 2.36 percent, while the Nasdaq Composite Index declined 2.17 percent. The Dow Jones Industrial Average dropped 2.92 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, lost 2.95 percent.^1,2

Action-Packed Week

Stocks largely went sideways over the first half of the week as investors waited for more Q2 corporate results, fresh economic data, and the Fed decision.

The U.S.-E.U. trade agreement announced over the weekend had a muted impact on the market as the week began. Stocks then retreated as China trade talks appeared to stall, with the Dow declining the most of the three major averages through midweek.^3,4

Stocks gained on Wednesday morning after the latest gross domestic product (GDP) report showed consumer spending powered the economy back to 3 percent annualized growth in Q2. That afternoon, the Federal Reserve announced they were holding rates steady, which put some pressure on stocks.⁵

Selling pressure continued on July’s final trading day as investors continued to fret about the Fed’s next move. The Personal Consumption and Expenditures (PCE) Index—the Fed’s favored inflation metric—showed a June uptick in core goods prices, unsettling investors.⁵

Stocks were under pressure from the opening bell on Friday as investors sorted through fresh tariff announcements from the White House, a softer-than-expected July jobs report, and mixed Q2 corporate reports from two megacap tech names.^6,7

Mixed Economic Signals

There was a trove of economic data for investors to parse last week.

First, there was economic growth. While 3 percent GDP growth in Q2 is a solid step up from a 0.5 percent contraction in Q1, consumer spending largely drove the increase, offset by slower business spending—especially investment in equipment and buildings.⁸

The PCE report showed why the Fed remains focused on inflation. Finally, Friday's jobs report pointed to a slowdown in hiring in July. A bit more concerning was that the jobs data from prior months were revised lower.

The Fed has no meeting in August, with three other meetings scheduled for 2025.

This Week: Key Economic Data

Monday: Factory Orders. Motor Vehicles Sales.

Tuesday: Trade Deficit. ISM Services Index.

Wednesday: Treasury Buyback Announcement. 10-Year Treasury Note Auction. San Francisco Fed President Mary Daly speaks.

Thursday: Productivity and Costs. Weekly Jobless Claims. Wholesale Inventories. Consumer Credit. Fed Balance Sheet. Atlanta Fed President Raphael Bostic speaks.

Friday: St. Louis Fed President Alberto Musalem speaks.

^{Source: Investors Business Daily - Econoday economic calendar; August 1, 2025
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.}

This Week: Companies Reporting Earnings

Monday:  Palantir Technologies Inc. (PLTR), Vertex Pharmaceuticals Incorporated (VRTX)

Tuesday: Advanced Micro Devices, Inc. (AMD), Caterpillar Inc. (CAT), Amgen Inc. (AMGN), Arista Networks, Inc. (ANET), Pfizer Inc. (PFE), Duke Energy Corporation (DUK)

Wednesday: McDonald’s Corporation (MCD), The Walt Disney Company (DIS), Uber Technologies, Inc. (UBER), Shopify Inc. (SHOP), AppLovin Corporation (APP), DoorDash Inc. (DASH), Brookfield Asset Management Ltd. (BAM)

Thursday: Eli Lilly and Company (LLY), Gilead Sciences, Inc. (GILD), ConocoPhillips (COP), Constellation Energy Corporation (CEG)

^{Source: Zacks, August 1, 2025. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.}

“Judge each day not by the harvest you reap but by the seeds you plant.”

– Robert Louis Stevenson

What to Know About Excise Tax as a Business Owner

Federal and state excise taxes are for specific goods, services, and activities, such as fuel, tobacco, alcohol, airline tickets, and more. 

If your business is subject to excise tax, you must file a Form 720, Quarterly Excise Tax Return, to report the tax. You must also file this form every quarter.  

You can electronically file Form 720. Each industry may have its forms (ex: Form 2290, Heavy Highway Vehicle Use Tax). 

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS⁹

Pumpkin Bread

It started out as a seasonal treat. Now folks enjoy it all year round. Here’s how to make it for yourself.

Ingredients:

2 cups all-purpose flour
½ teaspoon salt and baking powder
1 teaspoon baking soda, ground cloves, ground cinnamon, and ground nutmeg
1½ sticks (¾ cup) unsalted butter, softened
2 cups sugar
2 large eggs
1 15-oz can pumpkin

Directions:

1. Preheat the oven to 325°F

2. In a medium bowl, combine the flour, salt, baking soda, baking powder, cloves, cinnamon, and nutmeg. Whisk until well combined; set aside.
3. With an electric mixer, beat the butter and sugar on medium speed until just blended. Continue beating until very light and fluffy, a few minutes. Beat in the pumpkin.
4. Add the eggs one at a time, beating well after each addition. It’s okay if the mixture is grainy.
5. Add the flour mixture and mix on low speed until combined.
6. Pour the batter into greased 8x4” loaf pans and bake for 65-75 minutes. Let cool for 10 minutes.

Tip Adapted from Once Upon a Chef¹⁰

They can run side by side for thousands of miles; they are made of steel. While they constantly touch the ground, they seldom meet or touch each other. What are they?

Last Week's Riddle: They are sometimes stomped on, yet they can also be very tasty and sweet. What are they?
Answer: Grapes.

Mesquite Dunes
Death Valley National Park, California, United States