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%.

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.

Yahoo Finance's Francisco Velasquez reports:

Former Treasury Secretary Larry Summers expressed skepticism over the US government's decision to take a 10% equity stake in Intel (INTC), warning that the move reflects a troubling shift in how economic policy is being carried out.

The stake comes as Washington steps up efforts to boost the domestic semiconductor industry. While Summers acknowledged the logic of public funds supporting struggling companies, he cautioned that the Intel deal fits into a broader — and, in his view, problematic — pattern.

\\"It comes as part of a general approach to [economic] policy, what you might call deals-based capitalism rather than rules-based ... capitalism,\\" he said.

Read more here.

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.

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.

Yahoo Finance's Ben Werschkul reports:

President Trump and his team offered multiple signals Monday that last week’s deal to take a share of Intel (INTC) could be just the beginning of what they hope is a new wave of government dealmaking.

Speaking in the Oval Office Monday morning, Trump said he wanted to see \\"many more cases\\" like Intel, and that part of his recent pitch to the company’s CEO was that if they agreed to the deal, then \\"you have the United States as a partner.\\"

“I want them to do well,” the president said of the chipmaker, adding that it was true before but saying, “I want them to do well in particular now.”

This latest wave of White House commentary came after the business world spent the weekend digesting the novel agreement, which saw the US government take a 9.9% stake in Intel after buying 433.3 million shares in the chipmaker at a price of $20.47 per share.

Read more here.

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:

... Summers said the political pressures and personal attacks targeting Federal Reserve Governor Lisa Cook are unprecedented — and it should alarm anyone concerned about the independence of US institutions.

\\"I have to say that the use of prosecution of one's adversaries, whether it's the FBI visit to John Bolton's home or whether it is the kind of attack that has been launched on Lisa Cook, is, I think, something that should be chilling to many Americans,\\" Summers said on Yahoo Finance's Opening Bid (video above).

Summers's remarks come amid heightened tensions between the White House and the central bank. President Trump has repeatedly called for lower interest rates, adding to the strained relationship with Fed Chair Jerome Powell.

Read more here or watch the full interview below.

\\"I worry that it's now been years since we really had a sustained period of 2% inflation and that we probably haven't seen all the consequences of tariffs,\\" former US Treasury Secretary @LHSummers says. \\"It's a moment to tilt toward concern...\\" pic.twitter.com/BVsgvzGsPC

— Yahoo Finance (@YahooFinance) August 25, 2025

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.

Reuters reports:

Sales of new U.S. single-family homes fell in July following a sharp upward revision to the prior month's sales pace, and the overall trend remained consistent with a housing market struggling in an environment of high mortgage rates.

New home sale units dropped 0.6% to a seasonally adjusted annualized rate of 652,000 units last month, the Commerce Department's Census Bureau said on Monday. The sales pace for June was upgraded to a rate of 656,000 units from the previously reported pace of 627,000 units.

Economists polled by Reuters had forecast new home sales, which make up more than 10% of U.S. home sales, would rise to a rate of 630,000 units.

Read more here.

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.\\"

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%.

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.\\"

Read more here.

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%.

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:

Orsted, the world's biggest offshore wind farm developer, had already been struggling with project delays and cancellations in the United States and elsewhere due to rising costs, higher interest rates, and supply chain problems. It has lost 87% of its market value since its peak in January 2021.

The U.S. Bureau of Ocean Energy Management (BOEM) issued a work-stop order late on Friday on Orsted's $1.5 billion project, which is 80% complete with 45 out of 65 turbines installed. The wind farm was expected to supply electricity to 350,000 homes in Rhode Island and Connecticut starting next year.

Read more here.

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:

As the industry-mandated quiet period ended on Monday, J.P. Morgan, RBC Capital Markets and Morgan Stanley initiated coverage with the equivalent of 'hold' ratings. Shares of the company were down nearly 1% at $76.64 in premarket trading.

\\"We view Figma as a market-leading platform, but valuation at a market-leading multiple is pricing a long runway for growth, limiting the near-term risk/reward and leaving us on the sidelines,\\" Morgan Stanley analysts said as they initiated coverage with an 'equal-weight' rating.

The company's market value of $37.68 billion as of last close now far exceeds the $20 billion price tag from a now-abandoned buyout deal with industry giant Adobe in December 2023.

Read more here.

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:

Wall Street's explosive adoption of digital tokens pegged to the US dollar has been fueled by the recently signed GENIUS Act, which established guidelines and a landmark framework for the industry. ...

Under the new law, stablecoin issuers have to back tokens with dollars or other high-quality liquid assets, effectively positioning short-term T-bills as the collateral of choice. ...

\\"Although the stablecoin market is currently too small to have a large effect on Treasury demand, the market is expected to grow substantially over the next several years,\\" wrote Stefan Jacewitz, economist at the Federal Reserve Bank of Kansas City.

That's exactly what Wall Street is betting on.

Read more here.

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.”

Read more here from Reuters

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:

Canadian investors have injected C$124 billion ($89.7 billion) into US stocks in 2025, even as Trump’s trade war disrupted the two countries’ longstanding, largely tariff-free relationship, according to data compiled by Warren Lovely at National Bank of Canada Financial Markets. That’s on track for the largest yearly inflow since at least the 1990s.

Canadian investors can’t seem to resist the lure of the US market, which has outperformed the domestic benchmark in each of the past two years. Pinpointing the exact reason for this year’s enthusiasm — when the relations between the two countries have grown more tense — is a tricky proposition. But optimism over an artificial intelligence frenzy that’s pushed US tech titans to multiple records looms large.

“It’s a lot of performance chasing,” said Greg Taylor, chief investment officer at Vancouver-based PenderFund Capital Management Ltd. He pointed to years of US market outperformance, thanks to the rise of AI and inflows into mega-cap tech stocks.

This year, Canadian shares have proven the better bet. Canada’s benchmark index has outperformed its US peer, with the S&P/TSX Composite Index climbing almost 15%, compared with a 10% gain in the S&P 500 Index.

Still, locals have “seemingly failed to employ a ‘buy Canadian’ (or ‘sell American’) philosophy in their own portfolio dealings,” Lovely, managing director at the firm, wrote in a note to clients last week.

Read more here.

Keurig Dr Pepper's (KDP) $18 billion coffee megadeal for JDE Peet's (JDEPY, JDEP.AS) has failed to buzz investors in premarket. Its US-listed stock slid in premarket after the beverages giant confirmed reports of the acquisition.

Reuters reports:

US-listed Keurig Dr Pepper has agreed to buy Dutch company JDE Peet's for 15.7 billion euros ($18.4 billion) in cash, aiming to establish a global coffee champion in the face of growing trade challenges.

Under the terms of the deal, the maker of 7UP and Dr Pepper sodas will offer 31.85 euros for each JDE Peet's share, representing around a 20% premium on the Dutch company's closing market price on Friday.

The deal, billed as one of Europe’s largest acquisitions in over two years, proposes splitting the merged entity’s coffee operations and other beverage businesses into two separate publicly listed companies. ...

Both Keurig and JDE Peet's have flagged the impact of high coffee bean prices, which are seen rising again after U.S. President Donald Trump imposed a 50% tariff on beans imported from Brazil from August 6.

Read more here.

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.\\"

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:

In the week ahead, earnings from Nvidia (NVDA) will see the world's largest company and AI leader test a summer rally that has stocks back near record highs.

Nvidia's quarterly earnings release after the bell on Wednesday will be this week's key event. But the economic calendar will be busier than the earnings calendar, with updates on inflation, GDP growth, home sales, and consumer sentiment all featuring in coming days. ...

During what was likely his final speech at the Jackson Hole Symposium as Fed chair, Jerome Powell told the audience the \\"shifting balance of risks may warrant adjusting our policy stance.\\" For investors, the words \\"may warrant\\" became a green light on rate cuts next month. ...

These rate-cut hopes will be put to the test on Friday with the release of the Personal Consumption Expenditures (PCE) index, the Fed's preferred inflation measure.

Read more here.