August 28th, 2025
Markets Open Flat as Investors Digest NVIDIA Results and Economic Data
U.S. equities opened Thursday little changed, with major indexes hovering near the flatline despite NVIDIA posting earnings and revenue that beat Wall Street estimates.
The chipmaker delivered earnings, revenue, and guidance that all exceeded expectations, though growth in its data center segment came in below consensus and the results lacked the dramatic upside investors had grown accustomed to in recent quarters. Even so, the stock has recovered from its lows, supported by management’s upbeat commentary and guidance that appeared conservative given it excluded any potential sales to China.
Within the market, communication services and financials are leading gains, while consumer staples and health care are trailing.
Overseas, Asian markets finished mixed after South Korea’s central bank kept its benchmark rate unchanged at 2.50%, as expected. Meanwhile, new 50% U.S. tariffs on imports from India took effect.
Economic Takeaways:
- On the bond side, yields are easing, with the 10-year U.S. Treasury sitting at 4.23%, well below its July peak near 4.50%.
- Economic data was also in focus, as the government’s second estimate of second-quarter U.S. GDP growth was revised upward to 3.3% from 3.0% in the advance reading, fueled by stronger fixed investment.
- The U.S. dollar is sliding against major global currencies.
- WTI crude oil is pulling back as seasonal demand is expected to taper with the end of the summer travel season, even as supply could tighten with Russia’s Druzhba pipeline resuming operations.
- Weekly jobless claims edged lower, with initial claims coming in at 229,000—slightly above forecasts of 227,500. Continuing claims also slipped to 1.95 million from 1.96 million the prior week.
- CME FedWatch data shows an 88% probability of easing at next month’s Fed meeting. Political pressure on the central bank is also in focus after President Trump’s attempt to remove Fed Governor Lisa Cook.
Federal Reserve Governor Lisa Cook filed suit Thursday against President Trump, Fed Chair Jerome Powell, and the Board of Governors, challenging Trump’s attempt to fire her over allegations of mortgage fraud. Cook argues the president exceeded his authority under the Federal Reserve Act and violated her due process rights, noting that “for cause” removal must relate to official misconduct, not unsubstantiated personal allegations.
The case raises a historic question: Can a U.S. president remove a sitting Fed governor? Courts have never ruled directly on the issue, though precedent suggests the Fed enjoys more independence than other agencies. Trump’s move follows earlier threats to remove Fed Chair Jerome Powell, fueling concerns over the central bank’s independence. Legal experts expect the dispute could advance to the Supreme Court.
On the Move
- Dollar General (DG) surged 6% in pre-market trading after the retailer raised its full-year outlook on the back of solid consumer demand. Quarterly earnings also topped estimates.
- CrowdStrike (CRWD) slipped 2.8% despite beating earnings and revenue expectations and issuing above-consensus EPS guidance for the third quarter. Revenue guidance, however, came in lighter than analysts anticipated.
- Urban Outfitters (URBN) fell 3.4% even as the retailer delivered stronger-than-expected earnings and revenue, with comparable-store sales up more than 5%.
- Best Buy (BBY) lost nearly 4% before the open, pressured by investor disappointment that the company did not raise its full-year guidance despite topping earnings forecasts, according to Barron’s.
- Snowflake (SNOW) jumped 14% after the cloud-data company beat earnings estimates, while Five Below (FIVE) advanced 4% as the discount retailer posted a double-digit gain in comparable-store sales and raised guidance above consensus.
- Pure Storage (PSTG) climbed 15% on stronger-than-expected results, while Cooper Companies (COO) plunged 16% as upbeat earnings were overshadowed by weaker forward guidance.
- On the sector front, the Nasdaq Bank Index (BANK) extended its rally, gaining 8.6% so far in August. The steepening yield curve may be a tailwind, alongside optimism that Fed rate cuts could spur loan demand.
- In crypto markets, Bitcoin futures (/BTC) rose 1% this morning, continuing their rebound from recent lows. Crypto-related equities, including Circle Internet Group (CRCL), MicroStrategy (MSTR), and Coinbase (COIN), each gained roughly 1%.
What’s Ahead
Attention is now shifting to Friday’s release of July’s Personal Consumption Expenditures (PCE) inflation report. Headline PCE is expected to hold steady at 2.6% year-over-year, while the core reading—excluding food and energy—is forecast to edge higher to 2.9% from 2.8% previously.
Although inflation remains above the Federal Reserve’s 2% target, bond markets are already anticipating additional policy easing, with expectations for two rate cuts this year, potentially beginning in September, followed by three more in 2026. Easing borrowing costs would likely provide support to both consumer spending and corporate profitability in the months ahead.
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