August Kicks Off with Rate Cuts, Commodity Swings, and Corporate Shake-Ups (August 4 – 8, 2025 Recap) 

The first full week of August brought a mix of steady economic data, notable central bank decisions, volatile commodity moves, and a busy slate of corporate earnings. Inflation in Switzerland remained flat, U.S. services activity expanded modestly, and the Bank of England delivered a surprise rate cut amid easing price pressures. Labor market reports from New Zealand and Canada signaled softening employment trends, while currency markets reacted to these releases with moderate moves. Commodities saw oil prices retreat sharply, gold and silver gained, and U.S. equities rallied strongly. On the corporate front, earnings from energy giants, industrial leaders, tech firms, and consumer brands drove significant share price swings, with BP and Pfizer among the standouts and Snap suffering steep losses.

Major Economic Indicators and Events in Review

Monday, August 4

09:30 am – Switzerland: CPI m/m (CHF)

In July 2025, the consumer price index held steady at 107.8 (Dec 2020 = 100), showing no change from June. Year-on-year inflation stood at just 0.2%.

The USDCHF exchange rate increased by 0.44% compared to the previous day.

Tuesday, August 5

17:00 – USA: ISM Services PMI (USD)

U.S. services sector activity expanded in July for the second consecutive month, with the ISM Services PMI at 50.1%, just above the breakeven point and down slightly from June’s 50.8%. Business activity (52.6%) and new orders (50.3%) remained in growth territory, while employment contracted for the fourth time in five months (46.4%). Supplier deliveries slowed (51%), prices accelerated to their highest level since October 2022 (69.9%), and inventories stayed in expansion (51.8%). Backlogs continued to shrink (44.3%), marking the fifth straight month of contraction.

EURUSD saw a slight uptick, rising 0.05% from the previous session.

Wednesday, August 6

01:45 am – New Zealand: Employment Change q/q (NZD)

New Zealand’s seasonally adjusted employment rate fell to 66.8% in the June 2025 quarter from 67.1% in March. Men’s employment eased to 71.0%, while women’s slipped to 62.8%. The number of employed people was 2.88 million, down from 2.91 million a year earlier.

The NZDUSD currency pair rose by 0.46% compared to the previous day’s closing price.

Thursday, August 7

14:00 – UK: Official Bank Rate (GBP)

The Bank of England’s MPC voted 5–4 to cut the Bank Rate by 0.25 percentage points to 4%, citing continued disinflation and easing wage pressures, while remaining cautious about inflation risks, with CPI expected to peak at 4% in September before falling back towards the 2% target.

The GBPUSD pair rose by 0.67% compared to the previous trading session.

Friday, August 8

15:30 – Canada: Employment Change (CAD)

Employment in July fell by 41,000 (-0.2%), lowering the employment rate to 60.7%, while the unemployment rate held at 6.9%. Losses were led by youth and declines in information, culture and recreation, and construction sectors, with notable drops in Alberta and British Columbia. Average hourly wages rose 3.3% year over year to $36.16.

The USDCAD exchange rate rose by 0.061% compared to the previous session.

Commodities

1. Crude Oil
   1. Crude oil prices decreased by 5.81% over the past week
2. Brent Oil
   1. Brent was down 4.60% compared to the previous week
3. Gold
   1. The precious metal Gold (XAUUSD) concluded the week on Friday with a 1.07% weekly increase
4. Silver
   1. XAGUSD increased by 3.51% from last week

Stock Market

1. S&P 500 increased by 2.65%
2. DJIA was up by 1.54%
3. NASDAQ 100 increased by 4.00%

Top Gainers

1. BioXcel Therapeutics, Inc. (BTAI) 194.89%
2. MEDIROM Healthcare Technologies Inc. (MRM) 121.69%
3. CommScope Holding Company, Inc. (COMM) 100.00%

Top Losers

1. Bollinger Innovations, Inc. (BINI) -80.12%
2. BioVie Inc. (BIVI) -72.31%
3. Longeveron Inc. (LGVN) -58.54%

Company Earnings (August 4 – 8)

Tuesday, August 5: BP (BP p.l.c.)

Tuesday, August 5: CAT (Caterpillar Inc.)

Tuesday, August 5: DVN (Devon Energy Corporation)

Tuesday, August 5: PFE (Pfizer Inc.)

Tuesday, August 5: SNAP (Snap Inc.)

Wednesday, August 6: AIG (American International Group, Inc.)

Wednesday, August 6: DIS (The Walt Disney Company)

Wednesday, August 6: LYFT (Lyft, Inc.)

Wednesday, August 6: MCD (McDonald’s Corporation)

BP posted a Q2 profit of $2.35 billion, beating forecasts, lifted by strong upstream performance and major exploration successes, including a significant new find in Brazil. The company raised its dividend, maintained a $750 million buyback, and reaffirmed its focus on fossil fuels amid ongoing takeover speculation.

BP shares rose by 7.53% compared to the previous week.

Caterpillar’s Q2 revenue met forecasts at $17 billion, but EPS of $4.62 missed estimates. Analysts trimmed 2025 earnings forecasts yet raised the price target 6.4% to $429, signaling confidence despite slower expected growth compared to industry peers.

CAT shares fell by 2.84% compared to the previous week.

Devon Energy narrowly missed Q2 profit estimates, hurt by lower oil prices, but announced two long-term natural gas supply deals, raised its 2025 oil production outlook, and cut capital spending as part of efforts to boost free cash flow.

DVN shares rose by 3.55% compared to the previous week.

Pfizer beat Q2 estimates with $14.7 billion in revenue and $0.78 EPS, reaffirmed its 2025 outlook, and raised full-year earnings guidance amid cost cuts and pipeline progress.

PFE shares increased by 4.64% from the previous week’s closing price.

Snap posted its slowest growth in over a year, with Q2 revenue up 8.7% to $1.34 billion, hurt by an ad platform glitch and competition from larger rivals, sending shares down 16% in after-hours trading.

SNAP shares dropped by 18.12% compared to the previous week.

AIG’s Q2 2025 adjusted EPS rose 56% year over year to $1.81, beating estimates by 14.6%, while adjusted operating revenue grew 3% to $6.8 billion, slightly topping forecasts.

AIG shares increased by 1.47% compared to the previous week.

Disney’s Q3 revenue rose 2% to $23.7 billion, with EPS more than doubling to $2.92 and adjusted EPS up 16%. Segment gains in Sports and Experiences offset declines in Entertainment, as Disney+ subscribers grew to 128 million.

DIS shares fell by 3.57% compared to the previous week.

Lyft posted Q2 revenue of $1.59 billion, missing estimates, with record ride volumes still below forecasts, sending shares down after hours.

LYFT shares declined by 1.54% compared to the previous week.

McDonald’s shares rose 4.81% over the past month, driven by strong Q2 2025 results, a revenue increase to $6.84 billion, higher net income, ongoing share buybacks, and a reaffirmed $1.77 quarterly dividend, boosting investor sentiment.

MCD shares edged up 0.85% from the previous week.

Conclusion

Overall, the week showcased a balance of modest economic growth, shifting monetary policies, and mixed corporate performances. While commodity markets faced notable swings and labor data pointed to pockets of weakness, equity markets remained resilient, buoyed by strong earnings from select blue-chip names. Investor sentiment was shaped by both macroeconomic signals and company-specific developments, setting the stage for a closely watched mid-August trading period.