Evening Market Recap

Sophia Reyes · August 22, 2025 9:22 PM

Market Snapshot for Friday August 22^nd, 2025

S&P 500 – 6,466.91 (+1.52%)

Dow Jones – 45,631.74 (+1.89%)

NASDAQ – 21,496.54 (+1.88%)

Market Performance

Market Rally Ignites as Powell Hints at September Rate Cut; Dow Hits Record High,

U.S. stocks staged a powerful rebound on Friday, with all three major indexes soaring after Federal Reserve Chair Jerome Powell signaled the central bank is preparing to cut interest rates as early as September.

The Dow Jones Industrial Average jumped 800 points, or 1.9%, to close at a record high, while the S&P 500 rose 1.5% and the Nasdaq Composite surged 1.9%. The rally marked a sharp reversal from the previous week’s slump, when tech names faced selling pressure amid uncertainty over the sustainability of the AI trade.

In his much-anticipated speech at the Jackson Hole symposium, Powell acknowledged that the Fed’s “baseline outlook and shifting balance of risks may warrant adjusting our policy stance.” While noting that inflation risks remain “tilted to the upside,” he pointed to tariff-driven price pressures as clearly emerging in the data. The remarks immediately shifted market sentiment, with traders now pricing in a 91.5% chance of a September rate cut, up from 70% earlier in the day.

Economic Takeaways –

• Treasury yields fell across the curve, with both the 10-year and 30-year bonds catching a strong bid. The dovish shift also spilled into digital assets, sending bitcoin (BTC-USD) and ethereum (ETH-USD) higher on the day.
• At the political level, the White House kept a close watch. President Donald Trump, who has repeatedly pressed Powell and the Fed for lower rates, escalated his criticism by demanding the resignation of Fed Governor Lisa Cook over alleged mortgage fraud—threatening to “fire” her if she doesn’t step down, even though presidents cannot legally dismiss Fed governors outright.
• Trump also made headlines in the corporate world, announcing the government will take a 10% ownership stake in Intel (INTC), calling it a “great deal” for taxpayers. Intel shares surged 5% on the news.
• With the Fed’s tone shifting and Washington moving aggressively into the corporate arena, investors now enter September positioned for one of the most consequential monetary policy pivots in years—setting the stage for heightened volatility, but also renewed optimism across risk assets.

Gold –

• Gold prices rebounded on Friday, buoyed by heightened expectations of a September rate cut following comments from Federal Reserve Chair Jerome Powell at the central bank’s Jackson Hole symposium.
• Spot gold was up 1.1% at $3,373.89 per ounce by 1:31 p.m. EDT (1731 GMT), while U.S. gold futures settled 1.1% up at $3,418.50.

Oil –

• Oil prices steadied on Friday amid uncertainty surrounding a potential peace deal between Russia and Ukraine, with prices gaining on the week for the first time in three weeks.
• Brent crude futures settled up 6 cents or 0.09% to $67.73. West Texas Intermediate (WTI) crude futures settled up 14 cents or 0.22% to $63.66.
• Both contracts gained more than 1% in the previous session. Brent gained 2.9% this week while WTI rose 1.4%.

Crypto –

• Digital assets also caught fire. Ethereum (ETH-USD) jumped 8.6%, outpacing Bitcoin’s (BTC-USD) 2.7% rise, while Solana (SOL-USD) and XRP (XRP-USD) each added roughly 4%. Ether notched its first new record since 2021.
• Crypto-linked equities joined the rally, with Coinbase (COIN) up 6.6%, MicroStrategy (MSTR) up 5.7%, Robinhood (HOOD) gaining 4.2%, and stablecoin issuer Circle (CRCL) soaring 9.6%.

Powell’s Pivot

Powell acknowledged that tariff-driven inflation pressures are “clearly visible” but emphasized that the U.S. labor market is now central to the Fed’s outlook. “The baseline outlook and the shifting balance of risks may warrant adjusting our policy stance,” Powell said, underscoring that the Fed will not allow temporary price spikes to become “an ongoing inflation problem.”

Trump Hints at Longer Lifeline for TikTok as Divestment Deadline Looms

TikTok may get yet another extension to keep operating in the U.S. President Donald Trump said Friday that enforcement of a U.S. law requiring Chinese parent company ByteDance to sell most of TikTok’s U.S. assets “may extend a little bit longer.”

The law, signed by former President Biden in April 2024 and slated to take effect this January, mandates TikTok’s divestment to an American buyer—or one based in a U.S. ally nation. Trump’s comments suggest regulators could slow-walk the process, giving ByteDance and potential buyers additional breathing room.

Powell Signals September Rate Cuts, Shifts Focus to Labor Market

Yahoo Finance’s Myles Udland reports that Federal Reserve Chair Jerome Powell signaled Friday the Fed could begin cutting interest rates as early as September, marking a potential turning point in monetary policy.

Speaking at the Jackson Hole Economic Symposium, Powell acknowledged that tariffs continue to cloud the outlook for inflation. But his remarks underscored a new priority for the central bank: the U.S. labor market.

“While the labor market appears to be in balance, it is a curious kind of balance that results from a marked slowing in both the supply of and demand for workers,” Powell said.

The shift highlights the Fed’s growing concern that weakness in hiring could shape the path for interest rates well into next year, even as inflation pressures remain in play.

Apple & Google Stocks Pop on AI-Siri Partnership Report

Shares of Apple (AAPL) and Alphabet (GOOG) climbed midday Friday after reports surfaced that Apple is in talks to integrate Google’s Gemini AI into a revamped version of Siri.

According to Bloomberg’s Mark Gurman, Apple has approached Google about building a custom AI model to run on Apple’s servers and serve as the foundation for Siri’s upgrade, targeted for next year. The move underscores Apple’s urgency to catch up in generative AI, a field where it has lagged behind competitors despite its vast ecosystem.

Intel Jumps as Trump Confirms 10% Government Stake

In a bold move, President Trump said Friday the U.S. government will take a 10% ownership stake in Intel (INTC), calling it a “great deal.” Intel’s shares surged more than 5% on the announcement.

Treasury Secretary Scott Bessent earlier this week suggested that the administration was considering converting Biden-era CHIPS Act funding into equity to stabilize Intel’s U.S. manufacturing. The company has struggled with mounting cash burn in its foundry business, eroding PC chip market share to AMD (AMD) and Qualcomm (QCOM), and falling behind Nvidia (NVDA) in the AI race.

Top Gainers

Several stocks experienced significant gains. Some of the top gainers included:

Opendoor Technologies (OPEN) +39.17%

Ubiquiti, Inc. (UI) +30.64%

MINISO Group Holdings (MNSO) +20.12%

RXO, Inc. (RXO) +15.44%

Nio, Inc. (NIO) +14.44%

Top Losers

The top US stock losers today, based on percentage change included:

Newegg Commerce (NEGG) -12.98%

BJ’s Wholesale Club Holdings (BJ) -8.52%

Intuit, Inc. (INTU) -5.03%

Duolingo, Inc. (DUOL) -3.95%

CSX Corp. (CSX) -3.60%

Notables

• Opendoor (OPEN) surged 20%+, as lower rates could ease mortgage pressures and revive iBuyer demand. The move extended weeks of meme-like volatility in the stock, with traders piling back in alongside other high-beta favorites.
• BJ’s Wholesale (BJ) fell 8% after fuel prices weighed on second-quarter sales. Comparable club sales dropped 0.3% year-over-year, though ex-gasoline comps rose 2.3%. Earnings per share of $1.14 beat expectations, but revenue of $5.38 billion missed analysts’ $5.48 billion target. The retailer also narrowed its fiscal 2025 earnings outlook to $4.20–$4.35 EPS, tightening from prior guidance.
• Chinese EV maker Nio (NIO) unveiled its latest ES8 SUV on Thursday, sparking a rally in U.S.-listed shares. The stock climbed 5% in premarket trading Friday, making the Tesla (TSLA) rival the most-trending ticker on Yahoo Finance to start the day.
• Intuit Inc. (INTU) stock fell 6% before the bell on Friday after forecasting first-quarter revenue growth below analysts’ estimates on Thursday.
• The Information reported that Nvidia instructed some suppliers to halt production of components tied to its H20 AI chip—the lower-powered model recently cleared again for sale in China. Beijing has reportedly urged companies not to adopt the chip over security concerns. Bloomberg noted the production pause may signal weak demand in China, though CEO Jensen Huang said Friday that Nvidia is weighing a potential follow-up product for the market and emphasized the H20 contains no “security backdoors.”
• Ross Stores (ROST) gained after reporting earnings per share above analysts’ estimates alongside in-line revenue. The retailer guided Q3 earnings below consensus but forecast stronger results for Q4.
• Lucid (LCID) declined after announcing a reverse stock split.
• Intuit (INTU) fell. While the company beat earnings expectations, guidance came in softer than expected, Barron’s
• Workday (WDAY) dropped 4.5% in pre-market trading despite topping earnings forecasts, as its Q3 outlook landed slightly below Wall Street consensus.
• Individual stock weakness extended into consumer-facing names, including Walmart (WMT), United Airlines (UAL), Costco (COST), Dollar General (DG), Delta Air Lines (DAL), Norwegian Cruise Line (NCLH), and Target (TGT). Walmart’s earnings miss, coupled with concerns that prolonged higher rates could squeeze consumer spending, weighed on both discretionary and staples sectors.
• Starbucks (SBUX) edged up after Reuters reported the company expects non-binding bids for a partial stake in its China business within two weeks. Starbucks reiterated it is not selling the entire operation.

What to Watch Ahead

The core PCE price index—the Federal Reserve’s preferred inflation gauge—will dominate next week’s economic calendar. The report, due Friday alongside personal income and outlays data from the Bureau of Economic Analysis, is expected to show a slight uptick in annual core inflation to 2.9% for July from 2.8% in June.

Economists note that while the data isn’t likely to derail a widely expected Fed rate cut on September 17, a hotter-than-expected print could dampen expectations for further easing later in the year. Labor market signals will also draw attention, as jobless claims recently climbed to an eight-week high of 235,000, with continuing claims now at their highest level since November 2021.

Fed Chair Jerome Powell has hinted that economic conditions may warrant rate cuts in the near term, reinforcing market expectations that a pivot is approaching.

Artificial intelligence bellwether Nvidia is set to deliver fiscal Q2 results Wednesday evening. Analysts are looking for adjusted EPS of $1, up 47% year over year, on revenue of $45.87 billion, a 53% jump. Key questions include whether AI chip sales to China are resuming, how cloud capex spending is evolving amid ROI concerns for AI applications, and updates on the company’s H2O chip tailored for China. Investors will also watch for details on Nvidia’s revenue-sharing agreement with the Trump administration. After sliding in recent weeks on fears of an AI bubble, shares rebounded Friday to reclaim their 21-day moving average.

As the back-to-school season wraps up, a wave of apparel names will report. PVH, Abercrombie & Fitch, Kohl’s, Urban Outfitters, and Guess are all set to post results. Among them, Urban Outfitters stands out with the strongest analyst sentiment and technical setup. Guess, meanwhile, surged 26% last week after unveiling plans to go private in a $1.4 billion deal with Authentic Brands.