Here's how the ASX 200 market sectors stacked up this week

Financial shares led the ASX 200 market sectors last week, with a 2.59% gain over the five trading days.

At the other end of the scale, energy shares had a shocker with the sector losing 9.07%. This was largely due to substantial weakness in energy commodity prices, particularly in oil and gas.

The S&P/ASX 200 Index (ASX: XJO) lost 0.5% of its value last week.

The benchmark demonstrated stability on Monday and Tuesday before a 153.9-point (or 1.9%) plunge on Wednesday. The ASX 200 rebounded a bit on Thursday and Friday to finish the week at 8,013.4 points.

As we reported, the market's dive on Wednesday reflected four concerns.

Firstly, fears that artificial intelligence (AI) may not deliver the tangible business gains that markets have already priced in.

We also heard about risks to Taiwan's semiconductor industry, which led to Nvidia Corporation (NASDAQ: NVDA) shares crashing 9.5%.

A new report also showed United States manufacturing activity declined in August, and the market remains concerned about ongoing weakness in the Chinese economy.

Only three of the 11 market sectors finished the week in the green.

Let's recap what happened.

Financial shares led the ASX sectors this week

The five major ASX 200 bank shares all hit new 52-week highs on Friday.

Commonwealth Bank of Australia (ASX: CBA) shares once again shot the lights out, hitting an astounding all-time high of $144.25. CBA shares lifted 3.3% over the five days and finished the week at $143.47.

Macquarie Group Ltd (ASX: MQG) shares also rocketed to a new all-time high of $226.19 on Friday. The Macquarie share price lifted 4.89% and finished at $225.17.

Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares hit a new 52-week high of $31.88. ANZ shares rose by 4.85% over the week to finish at $31.79 on Friday.

Westpac Banking Corp (ASX: WBC) shares rose 2.88% over the five days to finish at $32.10 on Friday. They reached a new 52-week high of $32.17.

National Australia Bank Ltd (ASX: NAB) shares also smashed a new 52-week high at the closing bell on Friday. NAB shares rose 2.66% over the week to end the session on Friday at $39.05.

Economic news last week

Last Wednesday, we learned that Australia's annual gross domestic product (GDP) weakened to just 1%, the lowest rate of growth outside the pandemic since the early 1990s recession.

The Australian Bureau of Statistics revealed that GDP growth over the June quarter was anaemic at 0.2%.

On the surface, this may strengthen the case for interest rate cuts. However, Michele Bullock delivered a speech on Thursday in which she reiterated that it was "premature to be thinking about rate cuts".

Bullock explained that inflation was returning to target more slowly than expected. The RBA now forecasts underlying inflation (or the trimmed mean) to be back in the target 2% to 3% range by the end of 2025.

Underlying inflation was 3.9% for the June quarter. The ultimate goal is 2.5%, and Bullock reckons we won't get there until 2026.

So, this is why the RBA kept rates on hold this month. In recent meetings, the RBA board even considered a rate hike to keep inflation squarely on the 'narrow path'.

Bullock says the narrow path represents the bank's dual mandate of bringing down inflation in a reasonable timeframe while also striving for full employment.

Historically, economies have needed jobs to fall in order for inflation to fall, but Australia's labour market remains very strong. Hence inflation is sticky, and this all goes to why talk of rate cuts is "premature".

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up this week, according to CommSec data.

Over the past five days: