The U.S. stock market has delivered surprisingly strong returns in 2025, but history and Wall Street say the index will trade sideways in the remaining months of the year.
Shares of financial services firm Stifel Financial (NYSE:SF) fell 2.6% in the afternoon session after a weaker-than-expected U.S. jobs report sparked broader market concerns about a potential economic downturn. The U.S. Labor Department's report indicated that employers hired fewer workers in August than economists had forecast. Furthermore, previous hiring estimates for June and July were revised downward by a collective 21,000 jobs. This disappointing data follows other recent lackluster economic reports, leading traders to bet on a near-100% probability of a Federal Reserve interest rate cut at its next meeting. The broader market slipped as investors grappled with whether the job market has slowed just enough to warrant a rate cut or so much that it signals an impending economic downturn.
A number of stocks jumped in the afternoon session after the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium. Powell suggested that with inflation risks moderating and unemployment remaining low, the Federal Reserve might consider a shift in its monetary policy stance, including potential interest rate cuts. This outlook eased market concerns about prolonged high interest rates and their impact on economic growth. The prospect of lower borrowing costs bolstered investor confidence, particularly in sectors that have lagged, leading to a broad rally across the market.
