Evening Market Recap

Sophia Reyes · August 25, 2025 4:57 PM

Market Snapshot for Monday August 25^th, 2025

S&P 500 – 6,439.32 (-0.43%)

Dow Jones – 45,282.47 (-0.77%)

NASDAQ – 21,449.29 (-0.22%)

Market Performance

Stocks Slip to Start the Week as Nvidia Rally Fades, Investors Eye Fed and Earnings

Stocks ended lower Monday, with Wall Street pausing after last week’s sharp rally and ahead of key earnings from Nvidia later this week.

The Nasdaq Composite dipped 0.22% to close at 21,449.29, while the S&P 500 fell 0.43% to 6,439.32. The Dow Jones Industrial Average slid 349.27 points, or 0.77%, to settle at 45,282.47.

Nvidia shares gained about 1% on the day, helping buoy the Nasdaq early before momentum faded. Analysts remain broadly optimistic on the AI chipmaker, which reports quarterly results after Wednesday’s close. “The AI narrative remains strong despite talk of a bubble,” said Louis Navellier of Navellier & Associates. “Nvidia earnings are critical to that story.”

Intel, meanwhile, gave back some of its recent rally, slipping 1%. The stock had surged Friday after Commerce Secretary Howard Lutnick disclosed that the U.S. government now holds a 10% stake in the chipmaker. White House economic adviser Kevin Hassett framed the move as part of a broader Trump administration plan to build a sovereign wealth fund, with President Donald Trump adding Monday that he intends to pursue more such deals “all day long.”

Monday’s pullback followed a powerful rally last week, when Fed Chair Jerome Powell signaled the central bank is prepared to begin cutting rates as soon as September. Markets are pricing in an 84% chance of a quarter-point cut, according to CME FedWatch. Still, CFRA’s Sam Stovall cautioned that some of Friday’s gains reflected short covering, and that investors may see only “restrained gains” until the Fed makes its next move.

Economic Takeaways –

• A survey of economists showed that most experts believe the economy faces risks of recession and high inflation. The 159 respondents largely said President Donald Trump’s economic policies would increase those risks.
• Sales of new single-family homes in the U.S. declined in July, following a substantial upward revision to June’s sales pace, highlighting a housing market that continues to struggle under the weight of elevated mortgage rates. The Commerce Department’s report on Monday reinforced economists’ expectations that the housing slowdown could persist through the remainder of the year.
• The U.S. Commerce Department is set to release July’s Personal Consumption Expenditures (PCE) inflation data on Friday. Economists expect the headline PCE figure to remain steady at an annualized 2.6%. Core PCE, which strips out more-volatile food and energy components, is forecast to tick slightly higher to 2.9%, up from 2.8% in June. While both measures remain above the Federal Reserve’s 2% target, they provide important signals for the central bank’s policy direction.
• At last week’s Jackson Hole Economic Policy Symposium, Fed Chair Jay Powell emphasized that certain inflationary pressures—particularly those related to tariffs—may prove temporary, representing one-time price shifts rather than sustained trends. He also noted that emerging downside risks to the labor market could justify adjustments to the Fed’s policy stance.
• Financial markets have responded by pricing in expectations for two additional cuts to the federal funds rate later this year, likely beginning in September, followed by an anticipated three more reductions in 2026.

Gold –

• Gold prices held steady on Monday, as the market’s focus shifted to upcoming U.S. PCE data for cues on the Federal Reserve’s policy path, while a stronger dollar capped gains.
• Spot gold was flat at $3,372.67 per ounce, as of 0145 p.m. ET (17:44 GMT), after hitting its highest level since August 11 on Friday.
• U.S. gold futures for December delivery settled 0.03% lower at $3,417.5.
• The dollar gained 0.5% against rivals, making bullion priced in the currency more expensive for foreign buyers.

Oil –

• Oil prices climbed around 2% on Monday, continuing last week’s gains, as traders anticipated more U.S. sanctions on Russian oil and Ukrainian attacks on Russian energy infrastructure that could disrupt supplies.
• Brent crude futures settled up $1.07, or 1.58%, at $68.80, while West Texas Intermediate crude futures gained $1.14, or 1.79%, to $64.80.

Crypto –

• BTC and ETH started the week in the red after a large Bitcoin sale by a single whale set off a chain reaction of liquidations across the cryptocurrency market.
• This massive Bitcoin sell-off over the weekend pushed BTC down to a key support zone near $113,000.
• Ether ETFs posted $341 million in inflows Friday and its second day in a row of positive flows, according to SoSoValue, led by Fidelity’s FETH
• Ether rose to a new record over the weekend, after hitting an all-time high Friday for the first time since 2021.

UBS Urges Investors to Deploy Cash Ahead of Expected Fed Rate Cuts

UBS is encouraging investors to put idle cash to work, pointing to an anticipated shift toward easier monetary policy.

“We expect Powell to advocate for easing at the September meeting unless incoming data, such as a strong August labor report or higher-than-expected inflation, provide reason to stay on hold,” said Mark Haefele, chief investment officer for UBS Global Wealth Management, in a note Monday. The firm projects four quarter-point cuts beginning in September and extending through January 2026.

Haefele emphasized that “the time to put cash to work is now,” noting that rates are already low across much of Europe. UBS recommends buying market dips and sees further upside in global equities over the next six to 12 months, driven by the Fed’s expected pivot and strong capital spending trends. The firm’s favored sectors include U.S. technology, health care, utilities, and financials.

Musk’s xAI and X Sue Apple, OpenAI Over Alleged Antitrust Violations

Elon Musk’s AI startup xAI and social media platform X filed a lawsuit Monday accusing Apple and OpenAI of running an “anticompetitive scheme” to dominate the smartphone and generative AI markets.

The complaint, filed in U.S. District Court for the Northern District of Texas, alleges the two companies colluded to maintain monopolies and that Apple unfairly deprioritized competing “super apps” and AI chatbots like xAI’s Grok in App Store rankings. The suit warns that without court intervention, Apple and OpenAI will continue to stifle competition and harm rivals.

Trump Vows More Intel-Style Deals, Calls Stake a $11 Billion Win for U.S.

President Donald Trump said that the U.S. government will make more deals that are reminiscent of its recent stake in Intel.

“I PAID ZERO FOR INTEL, IT IS WORTH APPROXIMATELY 11 BILLION DOLLARS. All goes to the USA. Why are ‘stupid’ people unhappy with that? I will make deals like that for our Country all day long,” the president wrote in a post on Truth Social, adding that he will “help those companies that make such lucrative deals” with the U.S.

“I love seeing their stock price go up, making the USA RICHER, AND RICHER,” he also said. “More jobs for America!!! Who would not want to make deals like that?”

Top Gainers

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

Sasol Limited (SSL) +10.97%

Perimeter Solutions (PRM) +8.88%

IREN Limited (IREN) +7.89%

MP Materials Corp. (MP) +6.53%

Rocket Lab Corp. (RKLB) +6.40%

Top Losers

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

Newegg Commerce (NEGG) -15.63%

Keurig Dr Pepper (KDP) -11.48%

Freshpet, Inc. (FRPT) -10.11%

Tonix Pharmaceuticals (TNXP) -8.93%

Banco Macro S.A. (BMA) -8.45%

Notables

• CSX shares dropped about 6% after news that CEO Joseph Hinrichs met with Warren Buffett and Berkshire Hathaway’s Greg Abel in Omaha earlier this month. While Buffett said he isn’t looking to buy another railroad, the discussions centered on ways the two companies could cooperate more closely.
• Truist says Okta is hitting an inflection point as industry headwinds ease and demand grows for its all-in-one identity platform. The firm upgraded the stock to buy from hold and lifted its price target to $125 from $100, signaling a potential 35% upside from Friday’s close.
• Vital Energy shares surged 13% after the company announced it will be acquired by Crescent Energy in a $3.1 billion deal expected to close by year-end.
• MP Materials climbed nearly 7%, with the move coming after President Donald Trump signaled the government will pursue more deals like its recent stake in Intel. Just last month, the Pentagon became MP Materials’ largest shareholder.
• Apple edged higher despite lawsuits filed by Elon Musk’s companies, X and xAI, accusing Apple and OpenAI of running an “anticompetitive scheme” to hinder AI rivals.
• Bank of America cut its rating on American Eagle to underperform from neutral, warning that gains from its Sydney Sweeney partnership are likely to fade as Trump’s tariffs drive up costs. Analyst Christopher Nardone also lowered his price target to $10 from $11, implying more than 21% downside from Friday’s close.
• Keurig Dr Pepper’s roughly $18 billion offer to acquire Dutch coffee and tea company JDE Peet’s would reshape the global coffee landscape and intensify competition with Nestlé, Barclays said in a Monday note.
• Verint Systems shares jumped 12% after Bloomberg reported that private equity firm Thoma Bravo is close to acquiring the call center software company in a deal valued at roughly $2 billion, which could be announced as soon as Monday.
• Furniture stocks traded mostly lower in premarket after President Donald Trump said his administration would investigate imported furniture. Williams-Sonoma slipped more than 3%, RH dropped over 7%, while Ethan Allen bucked the trend, rising more than 3%.
• Raymond James raised its rating on Alaska Air Group to outperform from market perform on Monday, highlighting robust current demand and favorable competitive capacity trends.
• Billionaire Elon Musk’s electric vehicle company, Tesla, turned down a $60 million settlement offer in a lawsuit over a 2019 fatal crash involving an Autopilot-equipped Model S, before a jury awarded $243 million this month.
• Seagate Technology shares moved higher as Cantor Fitzgerald analysts said strong market dynamics and pricing could help boost the data storage company’s gross margin.
• DexCom (DXCM), a maker of continuous glucose monitoring devices for diabetes patients, fell nearly 8% after reporting late-July earnings. While the company beat sales and profit expectations and raised its full-year sales forecast, its adjusted gross margin declined year-over-year due to higher R&D and selling, general, and administrative expenses.

What to Watch Ahead

Tomorrow investors can look forward to earnings from MongoDB and BOX. July durable goods orders and August consumer confidence will be on tap for economic data.

Nvidia remains the big show runner for this week with its earnings on Wednesday. Kohl’s, Abercrombie & Fitch, CrowdStrike, Snowflake, HP and Five Below will also be reporting on Wednesday.