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US stocks retreated on Monday from a powerful rally fueled by rate-cut hopes, with eyes all on Nvidia (NVDA) earnings for the week ahead.
The Dow Jones Industrial Average (^DJI) dropped more than 300 points, or about 0.8%, after closing Friday at its first record high of 2025 The S&P 500 (^GSPC) fell 0.4%. The tech-heavy Nasdaq Composite (^IXIC) trimmed session gains to close down 0.2%.
Wall Street pulled back from a rally that saw the Dow Jones Industrial Average surge over 800 points, or 1.8%, to 45,631.74, to score its first record of 2025. Stocks jumped as investors cheered signals from Federal Reserve Chair Jerome Powell that rate cuts could start as early as September.
With earnings season continuing, Nvidia, the most valuable stock in the S&P 500, reports results after the closing bell on Wednesday. Analysts see the chipmaker posting earnings of $1.01 per share on $46.13 billion in revenue. Price targets have been climbing in the lead-up, reflecting optimism that demand for AI hardware remains high.
Nvidia stock has already had a monster run: Shares are sitting near a record high, up 32% year to date, while nearly doubling since April’s market low. Wednesday’s report acts as a litmus test for Nvidia as well as the broader market, as investors eyed a potential rotation out of tech before the end-of-week rally. Meanwhile, Dell (DELL) and Marvell Technology (MRVL) report on Thursday.
Looking ahead, the spotlight turns to Friday’s July PCE inflation report, the Fed’s preferred inflation gauge. Economists expect core PCE to rise 2.9% year over year, slightly higher than June’s 2.8%.
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Dow pulls back, S&P 500, Nasdaq drop as US dollar strengthens
US stocks retreated on Monday as the US dollar strengthened, trimming gains from a powerful rally fueled by rate-cut hopes.
The Dow Jones Industrial Average (^DJI) dropped more than 300 points, or about 0.7% from record levels, while the S&P 500 (^GSPC) fell 0.4%. The tech-heavy Nasdaq Composite (^IXIC) turned negative in the last hour of trading to decline 0.2% ahead of Nvidia (NVDA) earnings this week.
Stocks were mostly mixed during the session following a large rally on Friday in reaction to Fed Chair Jerome Powell’s dovish speech, signaling to the markets that a September rate cut is coming.
Wall Street expects this year’s stock market rally to continue on the heels of a strong earnings, and in anticipation of looser monetary policy.
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Government’s Intel stake highlights risks of ‘deals-based capitalism,’ former Treasury Secretary says
Yahoo Finance’s Francisco Velasquez reports:
Read more here.
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Bitcoin, ethereum trim Powell speech gains
Crypto declined on Monday to give up much of the gains accumulated on Friday in reaction to Fed Chair Jerome Powell’s dovish Jackson Hole speech.
Bitcoin (BTC-USD) fell more than 1.5% to hover near $112,000 per token, while ethereum (ETH-USD) sank 4%, retreating from its record high hit on Aug. 24.
The declines came after investors went risk-on on Friday, buying up equities and crypto after Powell opened the door to September rate cuts.
Crypto-friendly legislation surrounding the use of stablecoins and corporate purchases of bitcoin and ethereum have helped fuel a rally in crypto over the last couple of months.
Ethereum is up nearly 40% year to date, while bitcoin has gained nearly 20% in 2025.
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September Fed easing expected Wall Street raises S&P 500 price targets
UBS analysts expect the Federal Reserve to start easing in September, barring a strong August jobs report or higher-than-expected inflation following Fed Chair Jerome Powell’s speech, which was seen as more dovish than anticipated by the market.
“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 Ulrike Hoffmann-Burchardi, CIO Americas and Global Head of Equities at UBS Global Wealth Management
“Against this backdrop, we anticipate four quarter-point rate cuts through January 2026, starting in September,” she added.
The markets were mixed on Monday following a massive rally on Friday on the heels of Powell’s Jackson Hole meeting, in which he opened the door to a September cut.
Meanwhile, Wall Street analysts have been upping their price targets on the S&P 500, with Jefferies the latest firm to call for 6,600 by year-end on the broad-based index following “resilient” earnings.
UBS analysts also recently raised their target to 6,600 on the heels of strong earnings and expectations of an easing Fed.
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Trump signals Intel deal could be one of ‘many more cases’
Yahoo Finance’s Ben Werschkul reports:
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Former Treasury Secretary: Attacks on Fed Governor Lisa Cook should be ‘chilling’ for Americans
Former Treasury Secretary Larry Summers warned that while President Trump’s targeting of Federal Reserve officials may have a limited economic impact in the short term, over time it could have a more gradual, corrosive effect on markets.
Yahoo Finance’s Brian Sozzi and Francisco Velazquez report:
Read more here or watch the full interview below.
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Nvidia stock pops 2% as the Street grows bullish ahead of earnings
Nvidia (NVDA) stock rose more than 2% as of midday trading, lifting the tech-heavy Nasdaq Composite (^IXIC) into the green. It was one of the most active stocks on Yahoo Finance on Monday as traders looked ahead to the AI chipmaker’s earnings on Wednesday.
A broadening in markets and a slowdown in the tech trade have heightened the anticipation for Nvidia’s results.
Several Wall Street firms have upped their price targets on Nvidia stock in recent days, including UBS, Wedbush, Baird, Stifel, Evercore ISI, and KeyBanc Capital Markets. The median price target on the Street is $200 per share, according to S&P Global Market Intelligence, representing 10% upside from current levels.
“We continue to believe that NVDA’s leadership positioning in AI infrastructure remains unchallenged, and we expect GB300 specifications … to remain best-in-class as inference/reasoning complexity continues to increase,” Stifel analysts wrote in a note to clients on Monday.
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US new home sales fall in July
Reuters reports:
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Keurig Dr Pepper to acquire JDE Peet’s for $18B, to split into two public companies
Keurig Dr Pepper’s stock (KDP) fell after the company announced plans on Monday to acquire JDE Peet’s for $18 billion. JDE Peet’s stock surged on the news, up nearly 18%.
By the end of 2026, Keurig Dr Pepper will spin off into two publicly listed companies, Beverage Co. and Global Coffee Co., a pure-play coffee brand.
The beverage-focused company will include energy drinks C3 and Ghost, alongside juice and soda brands like Mott’s and Canada Dry, while Global Coffee Co will have JDE Peet’s and Keurig, among others. This essentially unravels Keurig’s 2018 acquisition of Dr Pepper Snapple.
The company’s US coffee business has been under pressure. Volume for its US coffee business is expected to decline 5.92% in the coming quarter, per Bloomberg consensus data, while its beverage business is expected to see continued growth.
“Global Coffee Co. will be able to optimize its operating and growth model to singularly focus on coffee greater consumer focus, sharper execution, fit-for-purpose growth opportunities,” CEO Timothy Cofer, who will be the CEO of Beverage Co. following the split, told investors on a call.
He added that, “as a pure play, I think the business [Beverage Co.] will benefit from even greater strategic clarity than what was possible as part of KDP.”
Lately, big food companies have faced questions about their futures and are taking a hard look at their US portfolios as consumer tastes shift, growth stalls, and regulatory scrutiny of products continues. Recent announcements include a potential breakup at Kraft Heinz (KHC), a multibillion-dollar deal between Ferrero and WK Kellogg (KLG), and PepsiCo’s (PEP) acquisition of soda brand Poppi.
“The self-reflection is building,” Mizuho analyst John Baumgartner told Yahoo Finance earlier this summer, “there’s a lot of flux in the industry right now.”
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Stocks fall at the open
US stocks retreated on Monday morning from their surge on Friday on the heels of Fed Chair Jerome Powell’s Jackson Hole speech.
The Dow Jones Industrial Average (^DJI) and the S&P 500 (^GSPC) both fell around 0.2% at the open. The tech-heavy Nasdaq Composite (^IXIC) dropped 0.3%.
Treasurys rose across the board, with the 10-year yield climbing 2 basis points to 4.28%.
And shares of Nvidia (NVDA), which reports earnings on Wednesday, fell 0.3%.
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Intel stock rises after Trump says ‘I love seeing their stock price go up’
Intel (INTC) stock gained as much as 3% early Monday morning after President Trump said he loved seeing the price of the chipmaker’s stock go up.
Trump’s comments came after Intel and his administration announced last week a deal for the government to take a 9.9% stake in the chipmaker.
In a post on Truth Social early Monday, Trump said the government paid “ZERO” for Intel, adding, “I will make deals like that for our Country all day long.”
“I will also help those companies that make such lucrative deals with the United States,” Trump added.
“I love seeing their stock price go up, making the USA RICHER, AND RICHER.”
Late Friday, Intel and the government disclosed the details of the agreement, which will see the government take an equity stake in the company worth $8.9 billion. Including the $2.2 billion CHIPS Act grant Intel has already received, the deal puts the government’s investment in Intel at $11.1 billion.
Trump’s post on Monday comes about an hour after Kevin Hassett, the director of the National Economic Council, that the administration will continue to look to make similar investments across industries.
In an interview on CNBC, Hassett said, “the president has made it clear all the way back to the campaign, he thinks that in the end, it would be great if the US could start to build up a sovereign wealth fund.
“So I’m sure that at some point there’ll be more transactions, if not in this industry then other industries.
On Friday, Intel stock rose 5% on reports the government was preparing to take a 10% stake in the chipmaker, which has fallen behind its peers during the AI boom. Shares slipped about 1.5% in late trading after details of the deal were announced.
“President Trump’s focus on U.S. chip manufacturing is driving historic investments in a vital industry that is integral to the country’s economic and national security,” Intel CEO Lip-Bu Tan said in a statement on Friday.
“We are grateful for the confidence the President and the Administration have placed in Intel, and we look forward to working to advance U.S. technology and manufacturing leadership.”
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Furniture stocks sink after Trump says furniture tariffs will be announced within 50 days
Furniture stocks were under pressure Monday after President Trump opened an investigation into imports of furniture, which is expected to lead to new tariffs.
Wayfair (W) and RH (RH) stocks fell 8%, Sleep Number (SNBR) dropped 5%, and The Lovesac Company (LOVE) declined about 4% just ahead of the opening bell.
“Within the next 50 days, that Investigation will be completed, and Furniture coming from other Countries into the United States will be Tariffed at a Rate yet to be determined,” Trump wrote in a Truth Social post on Friday.
However, not all furniture stocks took a leg lower. Ethan Allen (ETD) and La-Z-Boy (LZB) stocks got a lift, as the two furniture companies produce a significant portion of their items in the US. Ethan Allen rose 5%, while La-Z-Boy added nearly 2%.
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Ørsted stock falls to record low after US government stops work on Rhode Island wind project
Shares of the Danish offshore wind company Ørsted (ORSTED.CO) fell 15% to an all-time low after the Trump administration halted work on the company’s nearly completed wind farm off the coast of Rhode Island.
The order marks the second major wind project suspension this year after the administration also halted Norwegian energy company Equinor’s Empire Wind 1 project off the coast of New York in April.
Reuters reports:
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Figma draws Neutral ratings as Wall Street flags lofty valuation, rising competition
Wall Street firms initiated coverage of design software maker Figma (FIG) on Monday with Neutral ratings following the company’s blockbuster initial public offering in late July that saw shares explode 250% to $85 apiece.
Figma stock fell 1.6% in premarket trading to around $76.04 per share.
Reuters reports:
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Stablecoins are set to reshape the multitrillion-dollar US Treasury market
With US debt above $37 trillion and climbing, the US Treasury market is eyeing stablecoin issuers like Tether and Circle (CRCL) as key buyers.
Yahoo Finance’s Ines Ferré reports:
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PDD stock jumps after the Temu owner beat earnings estimates
PDD Holdings (PDD) stock gained 5% in premarket trading on Monday after the Chinese e-commerce giant beat earnings estimates by a wide margin. Shares spiked as much as 12% earlier but pared gains as investors digested the report.
The Temu and Pinduoduo owner reported earnings per American depository share (ADS) of 20.75 Chinese yuan (approximately $2.89) compared to estimates of 12.30 yuan ($1.72), per S&P Global Market Intelligence estimates.
Revenue rose 7% year over year to 10.4 billion ($1.45 billion), barely beating estimates as price competition with rivals Alibaba (BABA) and JD.com (JD) and higher costs from tariffs weighed on margins. US-listed shares of Alibaba and JD.com also rose ahead of the market open.
“Revenues growth further moderated this quarter amid intense competition,” said Jun Liu, PDD Holdings vice president of finance. “As we remain focused on long-term value creation, the sustained investments may continue to weigh on short-term profitability.”
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Canadians load up on US stocks despite Trump’s trade war
US President Donald Trump’s tariffs, threats of annexation and assorted insults have infuriated Canadians, leading them to sell off American real estate and boycott products.
The nation’s investors seemingly never got the memo, Bloomberg reports:
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Intel and the US government
Intel (INTC) shares are up slightly in premarket trading on the late Friday news the US government is taking a 10% stake in the chip giant.
The deal is getting mostly favorable reviews on the Street, in part because the government isn’t getting a board seat and the terms aren’t super restrictive.
Even still, it’s not an ideal situation for Intel. Now CEO Lip-Bu Tan has to have the Trump administration breathing down his neck at every corner while he attempts to save the company.
And make no mistake, with this government investment, it’s a signal that Intel needs saving.
What KeyBanc had to say:
“We see positive implications associated with this transaction as we were previously concerned that the U.S. government’s equity stake would likely have other Intel obligations with a potentially activist ownership role. Additionally, with the removal of the clawback on the previous CHIPS Act grant and announced equity transaction, uncertainty associated with whether INTC’s Chips Act funding would be reneged is off the table.”
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This week’s Nvidia earnings, PCE inflation pose tests with stocks near records
Yahoo Finance’s Josh Schafer lays out the potentially market-moving events to watch this week, after stocks ended last week in rally mode, thanks to Fed Chair Jerome Powell’s comments.
Schafer reports:
