--- title: August 2025 Market Update | Sanderson Wealth Management description: Markets showed resilience in August, with stocks and bonds advancing despite concerns over tariffs, labor market weakness, and the Federal Reserve. image: https://insights.sandersonllc.com/hubfs/August%202025.png --- - [716.566.2420](tel:716-566-2420) - [Client Login](https://www.sandersonllc.com/client-login/) [![Sanderson Wealth Management](https://insights.sandersonllc.com/hubfs/Sanderson_October2019%20Theme/Images/sanderson-logo-stacked@2x.png)](https://www.sandersonllc.com/) - About - [Services](https://www.sandersonllc.com/services/) - [Our Team](https://www.sandersonllc.com/team/) - [John Sanderson](https://www.sandersonllc.com/team/john-sanderson/) - [Justin Sanderson](https://www.sandersonllc.com/team/justin-sanderson/) - [James Warner](https://www.sandersonllc.com/team/james-warner/) - [C. 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The S&P 500 climbed 2.0%, bringing year-to-date returns to 10.8%, while bonds also advanced. The resilience of markets stood out, particularly given signs of labor market weakness and the uncertain policy backdrop. ## Markets U.S. large caps rose 2.0% in August, while mid-caps gained 3.4% and small caps rallied 7.1%, turning positive for the year at +3.2%. Value stocks led with a 3.4% increase versus 1.3% for growth. International markets continued to shine, with developed equities up 4.3% in August and 23.3% year-to-date, while emerging markets rose 1.5% and are up 19.6% in 2025.  ## Fixed Income and Fed Policy The Bloomberg U.S. Aggregate Bond Index rose 1.2% in August as shorter term Treasury yields fell, rewarding investors in the 2–4 year range. Long-term yields held steady, with the 10-year finishing at 4.2%. Markets were driven by Fed Chair Powell’s Jackson Hole remarks, which highlighted softening labor conditions. Despite inflation remaining close to 3% and the risk of tariff-related price pressures, investors now expect a September rate cut and see growing odds of another by year-end. ## Economic Data and Earnings Economic releases were mixed. Second-quarter GDP growth was revised upward to 3.3%, reversing a weak first quarter, but the jobs report showed only 73,000 positions added in July with large downward revisions to prior months. Unemployment held at 4.2%. Corporate earnings were stronger, with 81% of S&P 500 companies beating estimates—the best rate since 2023—demonstrating the adaptability of businesses even as tariffs and higher costs flow through. ## Looking Ahead August’s resilience across equities and bonds underscores the importance of staying diversified. With inflation easing and job growth slowing, the Fed may cut rates as soon as September, which could support markets. However, September has historically been challenging, with the S&P 500 averaging a -4.2% decline over the past five years. Tariff and policy risks add to potential near-term volatility, making it essential to be disciplined and focused on the long-term. We continue to emphasize globally diversified portfolios with exposure outside of traditional stocks and bonds to withstand shifting market dynamics. ![Stock Summary 8.25](https://insights.sandersonllc.com/hs-fs/hubfs/Stock%20Summary%208.25.png?width=800&height=353&name=Stock%20Summary%208.25.png) ![Market Indicators 8.25](https://insights.sandersonllc.com/hs-fs/hubfs/Market%20Indicators%208.25.png?width=800&height=425&name=Market%20Indicators%208.25.png)   ## Disclosure © 2025 Sanderson Wealth Management LLC. This information is not intended to be and should not be treated as legal, investment, accounting or tax advice and is for informational purposes only. Readers, including professionals, should under no circumstances rely upon this information as a substitute for their own research or for obtaining specific legal, accounting, or tax advice from their own counsel. All information discussed herein is current as of the date appearing in this material and is subject to change at any time without notice. Opinions expressed are those of the author, do not necessarily reflect the opinions of Sanderson Wealth Management, and are subject to change without notice. The information has been obtained from sources believed to be reliable, but its accuracy and interpretation are not guaranteed. ### Let’s talk about your future. Schedule a consultation to learn more about our investment services. ## Filter Blog Posts ### SUBJECT - [Investment Consulting (166)](https://insights.sandersonllc.com/tag/investment-consulting) - [Financial Planning (150)](https://insights.sandersonllc.com/tag/financial-planning) - [Tax Consulting (44)](https://insights.sandersonllc.com/tag/tax-consulting) - [Estate & Generational Wealth Planning (15)](https://insights.sandersonllc.com/tag/estate-generational-wealth-planning) - [Firm News (11)](https://insights.sandersonllc.com/tag/firm-news) - [Lessons Earned (11)](https://insights.sandersonllc.com/tag/lessons-earned) - [COVID-19: Market Watch (10)](https://insights.sandersonllc.com/tag/covid-19-market-watch) - [Community (5)](https://insights.sandersonllc.com/tag/community) - [Philanthropy (4)](https://insights.sandersonllc.com/tag/philanthropy) - [Business Succession Planning (3)](https://insights.sandersonllc.com/tag/business-succession-planning) - [Prosper Financial Wellness (3)](https://insights.sandersonllc.com/tag/prosper-financial-wellness) - [Ukraine: Market Watch (1)](https://insights.sandersonllc.com/tag/ukraine-market-watch) See all ### AUTHOR - [Angelo Goodenough](https://insights.sandersonllc.com/author/angelo-goodenough) - [C. 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