This Weekly Financial Markets Update reviews the top market headlines: Business Activity Surveys Dip in July, Stock Repurchase Plans Surge, Corporate Dealmaking Rebounds
  • The ISM Services index registered 50.1% in July
  • U.S. companies announced $166 billion worth of stock repurchases in July
  • The value of global M&A activity is $2.6 trillion year-to-date

Top Three Market Headlines

Business Activity Surveys Dip in July: A set of widely-followed surveys of business executives deteriorated marginally in July, indicating softening rates of business activity across the U.S. economy. The Institute for Supply Management (ISM) Manufacturing Index registered 48.0%, down from 49.0% in June, and still below the 50% threshold that differentiates expansion of business activity from contraction. This was the fifth straight sub-50% reading for the index. On the services side of the economy, the ISM Services Index ticked down to 50.1% in July from 50.8% in June, due to stagnant orders, weakening employment, and higher input costs.

Stock Repurchase Plans Surge: U.S. companies announced $166 billion worth of public stock repurchases in July, a record high for the month and triple the average over the last five years, according to Birinyi Associates. On a year-to-date basis through the end of the month, the total amount of announced buybacks was 13% higher than the previous record pace through the same seven-month stretch. Companies in the financial, technology, and communication services sectors have been particularly active in declaring buyback intentions this year; J.P. Morgan, Bank of America, and Morgan Stanley, for example, have collectively announced buybacks of more than $100 billion.

Corporate Dealmaking Rebounds: The amount of worldwide mergers and acquisitions (M&A) activity in 2025 reached $2.6 trillion through the end of July, the highest level for the first seven months of the year since 2021. Notably, the number of deals is 16% lower than last year, but their collective value is 28% higher, boosted by U.S. megadeals such as Union Pacific's proposed $85 billion acquisition of Norfolk Southern. Dealmaking has been brisk in the technology industry, highlighted by Palo Alto Networks' $25 billion offer for CyberArk, and private equity firms have also stepped up their activity of late, including a $10 billion deal by Sycamore Partners to take Walgreens Boots Alliance private.

As of August 08, 2025 Week Quarter-To-Date Year-To-Date One-Year
MSCI All Country World 2.54% 2.57% 12.88% 22.09%
S&P 500 2.44% 3.07% 9.47% 21.73%
Russell 2000 2.41% 2.08% 0.26% 7.89%
MSCI EAFE 2.87% 1.04% 20.69% 21.50%
MSCI Emerging Markets 2.31% 2.87% 18.58% 22.51%
FTSE NAREIT Equity 0.25% -0.98% -1.23% 0.40%
Bloomberg Commodity 0.25% -0.75% 4.74% 10.65%
Bloomberg U.S. Aggregate -0.18% 0.37% 4.40% 3.59%

Bloomberg 8/5/2025.ISM 8/1/25 and 8/5/25, MarketWatch 8/9/2025, Yahoo Finance 8/5/2025, Reuters 8/5/2025. Data from Morningstar Direct. Returns for periods greater than one year are annualized. Investment advisory services are offered by Gallagher Fiduciary Advisors, LLC ("GFA"), an SEC registered investment advisor that provides retirement, investment advisory, discretionary and independent fiduciary services. Registration as an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the SEC. GFA is a limited liability company with Gallagher Benefit Services, Inc. as its single member. GFA may pay referral fees or other remuneration to employees of Arthur J. Gallagher & Co. or its affiliates or to independent contractors; such payments do not change our fee. Neither Arthur J. Gallagher & Co., GFA, their affiliates nor representatives provide accounting, legal or tax advice. GFA does not express an investment opinion regarding any specific commodity, sector or individual security. Unless otherwise expressly noted, the contents of this communication do not constitute securities or investment advice, nor should this communication be construed as an opinion regarding the appropriateness of any investment. The information provided cannot take into account all the various factors that may affect your particular situation, therefore you should consult your GFA consultant before acting upon any information or recommendation contained herein to discuss the suitability of the information/recommendation for your specific situation.