Insights

Weekly Market Commentary – 22nd August

22 August 2025

This week was a time for re-evaluating lofty expectations. Tech stocks have been climbing since the April Orange Crash pulling the rest of the market with them. It has been a game of high investor expectations, with performance surpassing predictions from AI related companies as they invest heavily to get ahead. But a report by MIT, questioning the immediate profitability of such investments, and some comments about frothy valuations sent investors scurrying for the exit. Similarly, separate meetings between the US president and parties involved in the Russia-Ukraine war, since last Friday, have elevated hopes for a peace settlement. In turn, European defence shares retreated on speculation that the planned European military build-up, which companies have profited from so far this year, may be scaled back.