Evening Market Recap

Sophia Reyes · August 27, 2025 9:47 PM

Market Snapshot for Wednesday August 27^th, 2025

S&P 500 – 6,481.40 (+0.24%)

Dow Jones – 45,565.23 (+0.32%)

NASDAQ – 21,590.14 (+0.21%)

Market Performance

U.S. stock futures declined Wednesday evening as Wall Street digested Nvidia’s latest quarterly results, which, despite topping analyst expectations, failed to satisfy lofty investor hopes.

S&P 500 futures fell 0.3%, while Nasdaq 100 futures slipped nearly 0.5%. Contracts tied to the Dow Jones Industrial Average lost 12 points, or 0.03%. The pullback came after the S&P 500 closed at a record high in Wednesday’s session.

Nvidia, which represents about 8% of the S&P 500 by market weight, dropped roughly 3% in extended trading. The chipmaker’s fiscal second-quarter earnings and revenue exceeded Wall Street estimates, but data center sales of $41.1 billion—up 56% year over year—came in slightly below consensus expectations. That shortfall rippled across the semiconductor sector, with shares of AMD, Taiwan Semiconductor, and Broadcom each slipping about 1% after hours.

“Investor expectations were sky-high going into this print, and while Nvidia delivered, the market wanted even more,” said David Wagner, head of equity at Aptus Capital Advisors. “The stock’s reaction feels like a knee-jerk move. Investors should be buying the pullback given the company is still growing revenues at a 50% clip with a $50 billion quarterly run rate.”

Analysts also pointed to geopolitical uncertainty as a factor. Nvidia confirmed it did not sell any of its H20 processors to China during the quarter and excluded potential sales from its forward guidance. The Biden administration is still reviewing the legality of a 15% export tax on advanced chips from Nvidia and AMD, leaving investors waiting on clarity.

“That’s a key unknown,” said Art Hogan, chief market strategist at B. Riley Wealth Management. “If Nvidia secures licenses for H20 shipments into China, there’s significant upside that hasn’t been factored into guidance.”

Economic Takeaways –

• The S&P 500 hit a fresh record on Wednesday ahead of Nvidia’s earnings results.
• Markets largely brushed off Trump’s attempt to fire Fed Governor Lisa Cook, though bond markets showed some strain.
• 2-year Treasury yield: up 2 bps after dipping to 3.65% (lowest since May). 30-year yield: holding above 4.9%. Yield curve steepened to widest since April; 10-year rose to 4.28%.
• The EU is moving to fast-track tariff removal on U.S. industrial goods, potentially easing auto duties.
• Trump’s new 50% tariffs on Indian imports took effect Wednesday, in retaliation for Russian oil purchases.
• On Wednesday, Trump’s economic adviser Kevin Hassett said Cook should step aside while pursuing litigation, underscoring the ongoing tension over Fed independence.

Gold –

• Gold was little changed on Wednesday as investors closely awaited upcoming inflation data for clues on interest rate cuts, while concerns about the Federal Reserve’s independence lingered after U.S. President Donald Trump tried to fire a Fed governor.
• Spot gold was up 0.1% to $3,394.49 per ounce at 02:22 p.m. ET (18:22 GMT). U.S. gold futures for December delivery settled 0.5% higher at $3,448.6.

Oil –

• Oil prices fell as investors weighed the outlook for U.S. fuel demand with the end of the summer driving season near, while assessing potential crude supply shifts as India faces punishing U.S. tariffs for importing Russian oil.
• Brent crude futures dropped 31 cents, or 0.46%, to $67.74 at 0027 GMT, and West Texas Intermediate (WTI) crude futures dropped 36 cents, or 0.56%, to $63.79, after climbing more than 1% in the previous session.
• Goldman Sachs forecast Brent crude could fall to $50 by end of next year.

Crypto –

• Bitcoin reclaimed the $112,000 level as cryptocurrency rebounded on Wednesday.

Nvidia Says U.S. Has Yet to Finalize 15% Revenue-Sharing Rule for China Chip Sales

Nvidia (NVDA) said Wednesday that the U.S. government has not yet finalized an agreement that would require the company to hand over 15% of revenue from sales of its H20 processors to China in exchange for export licenses.

“Officials have expressed an expectation that the U.S. government will receive 15% of the revenue generated from licensed H20 sales,” CFO Colette Kress said on a call following the company’s fiscal second-quarter results. “But to date, the USG has not published a regulation codifying such a requirement.”

Nvidia was dealt a setback in April when Washington imposed an unexpected export ban on its H20 chips to China, resulting in $2.5 billion in lost sales and a $4.5 billion inventory hit in the first quarter. In July, the Trump administration said it would grant the company export licenses under the condition that it pay the government 15% of revenue from those sales—an unprecedented arrangement that Nvidia warned could face constitutional challenges under the U.S. ban on export taxes.

In its SEC filing, the company noted: “Any request for a percentage of the revenue by the USG may subject us to litigation, increase our costs, and harm our competitive position and benefit competitors that are not subject to such arrangements.”

Kress said that while “a select number” of Chinese customers have recently received licenses to purchase lower-power Nvidia chips, no H20 sales have been completed under those approvals. She added that the company remains in limbo as geopolitical negotiations continue.

“We’re still waiting on several of the geopolitical issues going back and forth between the governments and the companies trying to determine their purchases,” Kress said. “If those issues resolve, we should ship between $2 billion and $5 billion in H20 revenue in Q3—and with more orders, we could bill even higher.”

Top Gainers

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

MongoDB, Inc. (MDB) +37.96%

EchoStar Corp. (SATS) +15.51%

nCino, Inc. (NCNO) +13.94%

Aspen Insurance (AHL) +13.72%

Lumen Technologies (LUMN) +12.37%

Top Losers

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

Kindly MD, Inc. (NAKA) -21.69%

UP Fintech Holdings (TIGR) -9.75%

Li Auto Inc. (LI) -8.32%

Knife River Corp. (KNF) -8.20%

Summit Therapeutics (SMMT) -8.06%

Notables

• Cracker Barrel (CBRL) shares jumped 8% after the company restored its old logo, responding to public and Trump’s criticism. Citi said the publicity could drive near-term traffic.
• Abbott (ABT) CEO warned tariffs are “here to stay,” estimating a $200M hit; company is shifting supply chains.
• Royal Bank of Canada (RY.TO) stock rose 6% on strong Q2 results across all segments, with double-digit profit growth in Wealth Management and Capital Markets.
• IonQ (IONQ) shares rose after B Riley initiated with a Buy, citing long-term quantum computing growth potential.
• UnitedHealth (UNH) stock up despite reports of the DOJ’s criminal probe into Optum Rx is broader than expected; shares are still down 40% YTD.
• American Eagle (AEO) shares jumped after unveiling a Travis Kelce fashion collaboration, though stock remains down 23% YTD.
• Kohl’s (KSS) raised its full-year profit forecast on Wednesday, in a sign that the department store chain’s turnaround push is paying off.
• Shares of MongoDB (MDB) surged following surprising momentum in the database software provider’s subscription revenue.
• Okta (OKTA) stock rose more than 5% premarket after beating earnings estimates for its fourth-quarter earnings and lifting its full-year revenue outlook.
• Snowflake (SNOW) shares rose 4% before the bell ahead of its earnings release on Wednesday. Analysts are expecting Snowflake’s revenue to grow 25.4% year on year to $1.09 billion, slowing from the 28.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.27 per share.
• Snowflake surged more than 12% after reporting stronger-than-expected quarterly profit and revenue, with upbeat guidance for the current quarter.
• NetApp slid more than 6% as its latest earnings and outlook came in roughly in line with analyst forecasts, disappointing investors hoping for a stronger beat.
• Nvidia (NVDA) beat on earnings and revenue for the quarter and issued guidance for the current period that topped estimates. The stock, which is up 35% this year after almost tripling in 2024, slipped in extended trading as data center revenue came up short of estimates for the second straight period.
• Five Below (FIVE) beat expectations on the top and bottom lines. Revenue of $1.02 billion surpassed estimates of $996 million. Earnings per share of $0.81 also beat estimates of $0.63.
• CrowdStrike (CRWD) shares fell 6% after the cybersecurity company’s third quarter forecast disappointed.

What to Watch Ahead

On Thursday, Wall Street will receive an update on GDP growth as well as a slate of earnings from Best Buy (BBY), Dollar General (DG), Dick’s (DKS), Dell (DELL), Marvell (MRVL), Petco (WOOF), Gap (GAP), and Affirm (AFRM).

Second quarter GDP second estimate is also on deck.

On Friday investors can look forward to July PCE prices, July core PCE prices, July personal spending, July personal income, University of Michigan final August Consumer Sentiment, and expected earnings from Alibaba (BABA).

Economists polled by Reuters expect the PCE price index to rise 2.6% in July, matching June’s rise.