U.S. stocks settled near record highs in subdued trading as the Federal Reserve delivered its long-awaited first interest rate cut of 2025. The S&P 500 fell 0.1% to 6,600.35, while the Dow climbed 0.57% (up 260 points) to 46,018.32 and the tech-heavy Nasdaq finished off 0.33% at 22,261.33. The Russell 2000 surged intraday, crossing its first record since 2021, but ultimately closed up modestly by .18% to 2,407.34, buoyed by revived appetite for small caps as rate cut hopes broadened the recent rally,
Macroeconomic Reports
Economic data today painted a mixed picture. The ISM Manufacturing PMI for August remained in contraction at 48.7, underscoring ongoing factory weakness, whereas the S&P Global Services PMI posted 52.3, suggesting moderate expansion. Building permits and housing starts figures were released where U.S. single-family homebuilding fell significantly in August by 7% to a seasonally adjusted annual rate of 890k in a sea of unsold new homes, but proved secondary to the Fed announcement. Markets also noted continued divergence between manufacturing softness and services’ resilience amid persistent inflation concerns. Stable energy prices helped contain headline CPI, but supply bottlenecks remain a drag on some sectors. Overall, investors focused primarily on the Fed’s policy pivot.
Federal Reserve, Yield Curve & Interest Rates
The Federal Open Market Committee lowered its policy rate by a quarter point to a 4%–4.25% range, the first such cut since late 2024, while emphasizing the persistence of above-target inflation and moderating job gains. Policymakers’ “dot plot” reinforced their cautious stance, anticipating roughly two additional quarter-point cuts by the end of 2025, with a strong focus on balancing inflation against a softening labor market. The 2-year Treasury yield closed at 3.559%, and the 10-year declined to 4.086%, slightly flattening the curve. Markets will be digesting Chair Powell’s forward guidance in coming sessions.
Gold, Silver, Oil and Bitcoin
- Gold traded to$3,693.90/oz, .84% as investors hedged bets post-FOMC, while silver closed at $42/oz, -2.15%.
- Oil (WTI) settled at approximately $64.07/barrel,-.70% as OPEC signals and inventory data competed with currency and global macro narratives.
- Bitcoin (BTC) traded to $115,970, -.96%.
Blue Chip & Tech Stock Highlights
Apple (AAPL):
Apple shares showed modest gains closing at $238.99, +.35% as initial preorder demand for the new iPhone 17 line appeared robust, especially for higher-end models. Nonetheless, future growth is clouded by concerns over margin pressures from U.S. tariffs on China-sourced components, increased regulatory scrutiny of the App Store, and debates about whether AI integration can reinvigorate its upgrade cycles. A recent analyst downgrade cited muted near-term innovation, even as Apple’s services and hardware businesses remain resilient.
Broadcom (AVGO):
Broadcom shares fell over 3% following news that Chinese regulators directed major tech firms to halt orders of certain U.S. AI chips—a move triggered by wider trade tensions and regulatory efforts to bolster domestic industry. AVGO, which recently posted record Q3 results on strong AI-driven demand, is now trading just below recent highs, with volatility following sector-wide weakness in semiconductors.
NVIDIA (NVDA):
NVIDIA dropped 2.60% to $170.29 after China banned top tech companies from buying its new AI chips, raising concerns about its position in a lucrative market. The company acknowledged ongoing U.S.–China trade friction but maintains robust global demand. CEO Jensen Huang stated the firm “can only serve a market if a country wishes for us to do so”, underscoring the tense geopolitical backdrop.
Tesla (TSLA):
Tesla shares charged higher closing at $425.86/share, +1.01% now up +28.83% over the last month. Momentum was fueled by Elon Musk’s surprise $1 billion share purchase, ongoing AI/robotics developments, and production ramp-up at its German plant. Musk’s renewed leadership focus has bolstered investor confidence, helping the stock recover from earlier year lows despite lingering competitive and margin pressures.
Meta Platforms (META):
Meta continued to ride post-earnings optimism after a blockbuster Q2; the stock closed at $775.72, -.42% as aggressive AI integration powered a 22% jump in revenue and strong ad platform results. The Meta Connect event today showcased new smart glasses and AI-first strategies, with broad investor enthusiasm despite sectoral concerns about AI-related capital expenses.
McDonald’s (MCD, $304.97, +.55%):
McDonald’s introduced a major policy overhaul in Japan for Happy Meal promotions to curb food waste and scalping after summer toy frenzies. In the U.S., the chain announced a $200 million seven-year investment to help American ranchers adopt regenerative practices, underscoring its commitment to supply chain sustainability. The firm also welcomed new senior executives this week.
Intel (INTC):
Intel close at $24.90, -2.46%. Investor optimism is growing as management focuses on cost efficiency, monetizing non-core assets, and attracting new capital, signaling a promising, if cautious, pivot under renewed leadership.
MongoDB (MDB, $315.38,-3.66%):
MongoDB unveiled next-generation AI functionality at its developer event, launching vector search and full-text search for self-managed platforms. The company reported robust customer and revenue growth, driven by deepening AI integration—a trend expected to further accelerate enterprise adoption.
Oracle (ORCL):
Oracle closed down 1.71% at $301.41 after its recent AI-led rally, with shares advancing on cloud momentum and strong forward bookings. The company remains central to ongoing U.S.–China negotiations over TikTok, and its role as TikTok’s cloud provider provided additional tailwinds. Recent accolades include being named a global leader in loan origination by IDC.
Opendoor (OPEN):
Opendoor shares rallied closing at $10.21, +14.46% after the company announced nationwide expansion plans in the U.S., leveraging new leadership and innovative options for home selling. The stock saw increased volatility, driven by high short interest and retail investor buzz.
Palantir Technologies (PLTR):
Palantir declined 1.13% to $168.33 as investors locked in profits after a stellar run—up over 350% this year—bolstered by major U.S. Army contracts and robust revenue growth. Despite short-term volatility, Palantir’s new government and industrial wins keep long-term growth prospects strong.
Rio Tinto Group (RIO, $62.99, -.71%):
Rio Tinto is undergoing a structural overhaul under new CEO Simon Trott, consolidating core divisions and initiating strategic reviews of non-core mineral assets amid lower profits and weak prices in iron ore and lithium. Reorganization aims to boost efficiencies while dealing with ongoing market challenges.
Eli Lilly (LLY, $760.13, -.60%):
Eli Lilly advanced yesterday after unveiling a $5 billion investment in a new Virginia manufacturing plant focused on cancer therapies, expanding domestic production in response to potential pharma tariffs. Clinical updates highlighted the company’s experimental GLP-1 pill outperforming a key Novo Nordisk competitor, further reinforcing its innovation pipeline.
Mergers, Acquisitions, and IPOs
No significant S&P 500 buyouts or mergers were announced today. In IPO news, online ticketing giant StubHub (STUB) debuted on the NYSE at $25.35 per share, raising $800 million after pricing at $23.50, in a sign of improving risk appetite for tech listings following earlier postponements due to tariff-related volatility, however shares closed lower art 22, -6.38%.
Tariff & Trade Developments
U.S. tariff headlines remained active as President Trump’s administration doubled import duties on Indian goods—aimed at providing leverage in ongoing U.S.-India and U.S.-China trade talks. Active litigation regarding reciprocal and emergency tariffs moves through the courts, with key decisions expected later in the fall. U.S. pharma firms, including Eli Lilly, announced expanded domestic investment as hedge against potential drug import duties.
