Global Financial Markets Update – August 16, 2025

Equities:
Markets were mixed this week, with major US indexes retreating slightly after notching record highs. The S&P 500 closed at 6,450, down 0.29% for the day but still up 16% year-over-year. Nasdaq saw milder declines, while gains persisted in consumer and healthcare sectors. Europe’s STOXX 600 slipped 0.06%, reflecting caution amid pending US economic data and global trade uncertainties.tradingeconomics+1
Momentum remains the top-performing ETF investment factor, up nearly 30% over the last year.etftrends

Geopolitics:
A highly anticipated Trump–Putin summit in Alaska has markets eyeing a potential Ukraine ceasefire. The ongoing tariff standoff between the US and China remains tense, disrupting global trade flows, commodity prices, and sentiment. Emerging markets are reacting to risk shifts with volatile currencies and higher oil prices. Investors show a flight to safety, favoring gold and bonds.reuters+3

ETFs & Sector Moves:
Momentum ETFs outperformed, aided by bullish sentiment. New ETF launches center on niche tech, green energy, and altcoin exposure. Retail involvement and fund flows are trending toward risk assets despite macro uncertainties.trackinsight+1

Crypto & On-chain Analysis:
BTC hit new highs, trading near $119,369 with a market cap of $2.37T. But on-chain data indicates a “bearish divergence”—whale wallets are accumulating while retail wallets surge, a signal for possible short-term correction. Ethereum’s on-chain metrics are overheated, with excessive trader profits—historically preceding corrections. Altcoin season is intensifying, and DeFi TVL jumped 23% in July, buoyed by regulatory optimism. NFT monthly volume rebounded 50%, led by Ethereum collections.changelly+2

Summary Table