General
August 4, 2025
Written by Curation
Week:
S&P500: -2.5% FTSE100: -0.1% Gold: +2.9%
ytd:
S&P500: +6.3% FTSE100: +9.9% Gold: +30.8%
The S&P 500 fell sharply this week, shedding over 2% as traders contended with mixed megacap earnings, rising geopolitical tensions, and growing macroeconomic uncertainty. After notching a fresh record close on Monday, the benchmark index tumbled by Friday, marking its worst week since April and snapping a rare streak of calm where it went 25 straight sessions without a 1% daily move.
So what went wrong this week?
The early part of the week saw cautious optimism, with markets grinding higher on hopes of an extended trade truce with China and Europe. But that tone soured quickly. Fed Chair Powell's midweek warning about inflation risks tied to tariffs doused rate-cut hopes. Even a strong showing from Microsoft and Meta couldn't stem the selling. By Friday, a triple whammy of Amazon’s weak guidance, Trump’s announcement of fresh tariffs from August 7, and softer than expected US jobs data tipped markets firmly into risk-off mode.
Why it might not get better soon
August has a well-earned reputation for choppy, low liquidity trading, and the seasonal pattern is playing out once again. Historically, it's among the weakest months for the S&P 500, and with geopolitical tensions rising and earnings season nearing its tail end, the path ahead looks tricky.
The UK continues to outperform
One notable theme continues to play out and that is UK outperformance vs the US. Whilst the S&P 500 was down 2.5% last week, the FTSE 100 was broadly flat, extending the YTD outperformance to just under 4%. Much lower valuations and sector weightings support the UK tilted towards energy and financials, in contrast to the US market’s heavy reliance on richly valued tech names.
THIS ARTICLE DOES NOT CONSTITUTE ANY FORM OF ADVICE OR RECOMMENDATION AND IS NOT INTENDED TO BE RELIED UPON IN MAKING ANY INVESTMENT DECISIONS. Curation Connect is an information service provided by Curation Corporation. Liability Your investments are your responsibility. No liability whatsoever is accepted by Curation Corporation Limited or any Curation Corporation company of their respective directors, officers, employees or analysts for any loss, whether direct, indirect, special, incidental or consequential, arising whether directly or indirectly as a result of the recipient acting or not acting on any information in any Curation Connect publication, including, without limitation, lost profits arising from the use of the Curation Connect service or any of its publications. We have no liability for any loss of profit, loss of revenue, loss of business, business interruption, loss of opportunity or any indirect, special or consequential loss; any losses which arise from any event beyond our reasonable control; any losses which could not reasonably have been anticipated; or your inability to access and/or use the Curation Connect service or the website. We do not exclude or limit in any way our liability to you where it would be unlawful to do so. Disclaimer Curation Connect publications are provided for general information purposes only and should not be regarded as an offer, solicitation, invitation, inducement or recommendation relating to the subscription, purchase or sale of any security or other financial instrument or investment. This report is intended only for investors who are 'professional clients' as defined by the FCA, and may not, therefore, be redistributed to other classes of investors. This document is provided for information purposes only and should not be regarded as an offer, solicitation, invitation, inducement or recommendation relating to the subscription, purchase or sale of any security or other financial instrument. This document does not constitute, and should not be interpreted as, investment advice. You must carry out your own independent research and obtain suitable professional advice before making any investment decision. The Curation Connect publications do not take the specific needs, investment objectives and financial situation of any particular individual into consideration and we cannot state whether any investment mentioned is suitable for you. You should not base any investment decision solely on the basis of the information we publish or provide to you. Always be aware of market risks – never invest money you cannot afford to lose. All investments can go down as well as up. Investing in securities entails risks. Potential Conflicts of Interest Curation Connect or its respective directors, officers, employees, contributors and clients may have or take positions in the securities, entities or investments mentioned in the Curation Connect publications. Any of these circumstances could create, or be perceived as creating, conflicts of interest. Privacy and Registration All information received from you and your use of the Curation Connect service and the website will be used by Curation Corporation Limited in accordance with our Privacy Policy. Please read this for details of how we may process your personal data. On registration for the Curation Connect service, you must provide us with accurate, complete registration information and it is your responsibility to update and maintain changes to your information. Curation Connect, a trading name of Curation Corporation Limited, is entitled to rely on any information you provide to us. Read our full T&Cs, disclaimers and privacy notice. Contact us at info@curationcorp.com Curation Corporation Limited, 58 Borough High Street, London, SE1 1XF, UK