Markets closed the week modestly higher after Powell’s Jackson Hole speech sparked a Friday rally, lifting rate-sensitive sectors. Value stocks outperformed growth as Fed rate cut odds climbed, but seasonal volatility could challenge the rally.

Markets gained modestly as investors positioned for a potential Fed pivot, with small-caps and value stocks leading. Crypto and commodities swung sharply, while rate-sensitive sectors may benefit from expected cuts.

Markets rebounded with strong gains in tech and consumer discretionary, pushing the NASDAQ to record highs. However, rising volatility expectations and mixed commodity moves signal caution ahead.

Markets pulled back sharply from record levels last week as volatility spiked, job data disappointed, and tariff headlines stoked uncertainty. Traders may need to adjust positioning and tighten stops heading into August.

Markets hit new highs yet again, but with earnings season peaking and the Fed on deck, this week could shake the calm. Traders should be prepared for possible volatility.