Weekly Market Review: Large-Cap Tech Holds Up as Small Caps and Precious Metals Retreat

What Moved Markets This Week

Two themes dominated the headlines. At the Jackson Hole Economic Policy Symposium, Federal Reserve Chairman Kevin Warsh conveyed concern over current inflation trends, according to CNBC. Warsh noted that while the summer's PCE and CPI readings were better than expected, they did not tell him that underlying inflation concerns had been fully resolved. The second preliminary reading of second-quarter GDP and the July Core PCE Deflator were also released during the week.

Separately, the technology sector drew attention around corporate results. As reported by Kiplinger, Nvidia forecast fiscal 2027 third-quarter revenue of roughly $108 billion, above Wall Street's expectation near $106 billion, and reported second-quarter revenue of $96.2 billion, up 106% year-over-year. According to Vittarthi, U.S. markets closed higher on August 28 led by a rally in technology following that forecast. In commodities, CNBC reported that attacks by Russia and Ukraine in the Black Sea disrupted grain shipments, halting most flows through ports that historically accounted for a large share of Russian grain exports. These items are provided as factual context for the moves in the data, not as forecasts.

Sectors and Global Markets

Sector performance skewed toward technology and communications. The Communication Services ETF (XLC) led at 1.41%, followed by the Technology ETF (XLK) at 1.32% and the Financials ETF (XLF) at 1.08%. On the weaker side, the Healthcare ETF (XLV) fell 1.96%, the Industrials ETF (XLI) declined 1.75%, and the Energy ETF (XLE) dropped 1.54%, the last consistent with the pullback in crude oil. The Real Estate ETF (XLRE) fell 1.38%.

Country results varied widely. The Taiwan ETF (EWT) rose 3.44% and the Brazil ETF (EWZ) gained 1.4%, while the South Korea ETF (EWY) added 1.1%. Germany (EWG) rose 0.86% and Japan (EWJ) rose 0.71%. Declines came from Switzerland (EWL) at -1.65%, Mexico (EWW) at -1.14%, and Canada (EWC) at -1.01%. Over the trailing year, the data shows the South Korea ETF (EWY) up 154.46% and the Taiwan ETF (EWT) up 88.82%, a reminder of how much longer horizons can differ from a single week.

Fixed Income and Commodities

Bonds posted modest gains across most segments. The long-term Treasury ETF (TLT) rose 1.01%, the investment-grade corporate bond ETF (LQD) added 0.42%, and the U.S. Aggregate Bond ETF (AGG) gained 0.15%. The short-term bond ETF (SHY) slipped 0.13%, and the intermediate Treasury ETF (IEF) was roughly flat at 0.03%. The high-yield bond ETF (HYG) rose 0.15%.

Real assets were notably weaker. The gold ETF (GLD) fell 3.43% and the silver ETF (SLV) declined 4.29%, even as both remain higher over the trailing month and year in the data. The crude oil ETF (USO) fell 3.71%, while the broad commodities ETF (DJP) was little changed at -0.12%. The REIT ETF (VNQ) declined 1.26%.

Factors and Style

Factor strategies isolate a single characteristic, such as cheapness (value), recent price strength (momentum), or steadier price behavior (low volatility). This week, the growth factor ETF (VUG) led at 1.15%, followed by the low volatility ETF (USMV) at 0.53% and the quality ETF (QUAL) at 0.17%. Momentum lagged sharply, with the momentum ETF (MTUM) down 1.83% and the high beta ETF (SPHB) down 1.54%. The value ETF (VLUE) slipped 0.62%, the equal-weight ETF (RSP) fell 0.46%, and the dividend growth ETF (SCHD) declined 0.63%, though its trailing-year figure stands at 29.75%.

The style box reinforced the large-versus-small divide. Large value (IWD) rose 0.38% and large growth (IWF) rose 0.27%, while mid and small segments fell across the board. Small growth (IWO) declined 2.14% and mid growth (IWP) fell 1.96%, the weakest style readings for the week. Notably, large value carries a 30.26% trailing-year figure against 9.96% for large growth, a divergence worth observing over longer periods.

What This Means for Long-Term Investors

This week illustrated how averages can mask meaningful dispersion: large-cap U.S. stocks and long Treasuries advanced while small caps, gold, silver, and crude oil fell, and factor results split between growth and low volatility on one side and momentum on the other. For diversified investors with long horizons, weeks like this show why holding a range of segments can smooth the experience, since the strongest and weakest areas were not the same, and a single week's leaders and laggards say little about outcomes measured in years.