August 31, 2025 Global Stock Market Report: Review of the Last Trading Day of August Due to Weekend Closure

Major stock markets around the world were closed on Sunday, August 31. The final trading day, Friday, August 29, provided a glimpse into the overall end of August. The US tech stock correction and the Fed conflict dominated the month-end mood. Overall, the S&P 500 closed August on a positive note, recording its fourth consecutive month of gains.

[Major Index Overview]

The US market closed lower on August 29 due to a tech stock correction. The S&P 500 index fell 41.60 points (0.64%) to 6,460.26 points, and the Dow Jones Industrial Average fell 92.02 points (0.20%) to 45,544.88 points. The Nasdaq Composite Index plunged 249.61 points (1.15%) to 21,455.55, recording the largest decline.

The VIX fear index rose 6.44% to 15.36, reflecting growing market anxiety.

[August Monthly Performance]

Nevertheless, the S&P 500 rose 1.53% in August, marking its fourth consecutive month of gains. On a year-to-date basis, it rose 14.37%, maintaining a solid performance.

[Fed Conflict Continues]

Fed Governor Lisa Cook continued her legal action against President Trump's attempted removal from office. A two-hour hearing on Friday yielded no conclusion, and Cook requested a temporary restraining order.

This debate over the Fed's independence is adding to market uncertainty.

[Chinese Market]

China's Shanghai Composite Index closed August strong, rising 43.25 points (1.14%) to 3,843.60 points. This represents a 17.81% increase year-to-date and a 36.15% increase over the past year, marking a remarkable performance.

Hong Kong's Hang Seng Index rose 0.32% to 25,077.62 points, marking a 27.79% increase year-to-date and a 39.4% increase over the past year, making it the best performing index in Asia.

[Korean Market]

South Korea's KOSPI index showed stability, rising 0.29% to 3,196.32 points. It maintained its solid performance, recording a 33.24% increase year-to-date and a 20.06% increase over the past year.

[Japanese Market]

Japan's Nikkei 225 Index fell 0.26% to 42,718.47 points, but is still up 8.68% year-to-date and 10.53% over the past year, continuing its steady upward trend.

[Indian Market]

India's Sensex index fell 0.87% to 80,080.57 points, showing a relatively weak performance, rising only 0.17% year-to-date.

[Major Index Update]

European markets closed lower across the board on August 29. The German DAX index fell 137.71 points (0.57%) to 23,902.21 points, and the UK's FTSE 100 index fell 29.48 points (0.32%) to 9,187.34 points. The French CAC 40 index fell 58.70 points (0.76%) to 7,703.90 points.

[Yearly Performance]

Nevertheless, the German DAX maintained a solid year-to-date performance, rising 19.36% year-to-date, and the UK's FTSE 100 rose 11.23%.

[Major Currency Trends]

The US Dollar Index fell 0.04% to 97.86, representing a 10.43% year-to-date decline and a 3.8% year-to-date decline, continuing the dollar's weakness.

This demonstrates the negative impact of Trump's intervention in the Federal Reserve and political uncertainty on the dollar.

[Gold Market]

Gold hit a new record high of $3,473.70 per ounce, marking its first increase in three weeks. This is the result of geopolitical uncertainty and the Fed conflict, which increased demand for safe-haven assets.

[Oil Market]

WTI crude oil fell 0.9% to close at $64.01 per barrel. Benchmark U.S. crude oil futures declined, reflecting concerns about increased supply and slowing demand.

[U.S. Treasury Bonds]

The 10-year Treasury yield rose slightly to 4.227%, reversing a three-day downward trend. This demonstrates that uncertainty about Federal Reserve policy is also impacting the bond market.

[Major Cryptocurrency Trends]

Bitcoin fell 3% to close at $108,221. This is interpreted as reflecting a risk-off sentiment coupled with the stock market's correction in technology stocks.

[Trade Policy Changes]

The United States has abolished the de minimis rule for tariff exemptions for packages valued under $800, and the exemption for Chinese goods expired in May. Concerns are growing about the impact of these strengthened protectionist policies on global supply chains and trade.

[Major Events in September]

Next week, the U.S. employment report for August is scheduled to be released on September 5th. This is expected to have a significant impact on the Federal Reserve's September interest rate decision.

The performance and outlook of large technology stocks, including Nvidia, will also continue to be a focus of market attention.

[Positive Performance]

- China: Shanghai +17.81%, Hong Kong +27.79% (YTD)

- Korea: KOSPI +33.24% (YTD)

- US: S&P 500 rises for 4th consecutive month

- Gold: Reaches new high, confirming its role as a safe-haven asset

[Concerns]

- AI technology stocks: Concerns about overvaluation and increasing pressure for adjustment

- Fed independence: Political interference fuels policy uncertainty

- Trade policy: Concerns about a global trade contraction due to increased protectionism

[September Market Outlook]

September is historically known as the most challenging month for the stock market, so investors should approach the market cautiously. August employment data and the Fed's September meeting will be key factors in determining future market direction.

[Short-Term Risk Factors]

- Seasonal Weakness: Historical Underperformance Pattern in September

- Fed Politicization: Concerns Overestimation of Monetary Policy Independence

- Tech Stock Correction: Concerns Over AI Bubble and Overvaluation

- Trade Conflict: Economic Impact of Tightened Tariff Policies

[Investment Opportunities]

Asian markets, particularly China and South Korea, are expected to continue their strength, and safe-haven assets like gold are expected to continue to attract attention amid geopolitical uncertainty.

The continued weakness of the dollar is expected to provide opportunities for investments in emerging markets and raw materials.

The trend of capital shifting from technology stocks to small-cap stocks is also an important factor to consider when developing an investment strategy for September.