Or better still:
UPDATE a SET Avg1WkVol = (SELECT AVG(Volume) from Test_HistoricalData b where b.Symbol = a.Symbol AND b.MarketDate a.MarketDate-8)
FROM Test_HistoricalData a
Although the previous version is much easier to disassemble for testing.
For fast, accurate and documented assistance in answering your questions, please read this article.
Understanding and using APPLY, (I) and (II) Paul White
Hidden RBAR: Triangular Joins / The "Numbers" or "Tally" Table: What it is and how it replaces a loop Jeff Moden