Major Index Performance
Caution prevailed at the start of the week as markets took profits, rates edged up, and tariff changes roiled global supply chains. With the key Nvidia earnings catalyst ahead, traders are recalibrating risk exposure across both growth and value segments. Yes indeed, U.S. equities opened the week with a modest retreat, as last week’s Fed-driven rally gave way to profit-taking and caution ahead of a pivotal earnings slate. The S&P 500 declined 0.4% to 6,441.84, while the Dow Jones Industrial Average dropped 0.8% (over 300 points) to 45,309.32 after reaching a record high the previous session. The Nasdaq Composite lost 0.2% to finish at 21,058.19, under pressure as technology shares consolidated recent gains. The Russell 2000 slipped 0.3%, reflecting a broader risk-off tone amid renewed volatility concerns.
Macroeconomic Reports
The only major data release today was New Home Sales for July. Recent readings showed modest growth, with last month’s sales rising 0.6% (to 627,000 units annualized), but inventory continued to build, rising to the highest since late 2007. The median sales price fell to $401,800 (down 4.9% month-over-month), emphasizing the ongoing affordability crunch in the housing sector even as supply expands.
Federal Reserve, Yield Curve & Interest Rates
Treasury yields drifted higher as market participants weighed the likelihood of Fed rate cuts later this year following Chair Powell’s Jackson Hole remarks. The 10-year yield remained elevated near 4.29%, mirroring inflation and policy uncertainty. No new FOMC communications were released, and the curve stayed relatively flat amid muted volume.
Tariff and Trade News
The expiration of the “de minimis” package tariff exemption dominated headlines. New rules take effect today, subjecting small international parcels to substantial duties ($80–$200 per item depending on country of origin and prevailing rates). This change is expected to impact e-commerce platforms and small businesses, with companies scrambling to adjust logistics and pricing. U.S. Customs noted over 1.36 billion shipments utilized the exemption in the prior fiscal year, spotlighting the wide-reaching effects of the policy shift.
Corporate Headlines & Share Price Movements
NVIDIA traded near record highs, with anticipation surging ahead of Wednesday’s earnings. Despite headwinds from the China chip ban, analysts project robust quarterly growth, expecting $1.01 EPS on revenues above $46 billion.
Tesla (TSLA, $346.60, +1.94%) remained stable as investors track developments in production, supply chain, and full self-driving software amidst broader EV sector consolidation.
Meta Platforms
saw mild profit-taking as investors rotated out of Big Tech following August’s surge, with regulatory and AI investment themes remaining in focus.
McDonald’s (MCD) closed at $313.44, -.20%, as value offerings and BTS promotional tie-ins continued to supply defensive appeal.
Intel (INTC) closed at $24.55, -1.01%.
Oracle (ORCL, $235.41, -.41%) weakened with the broader tech sector, giving back some recent gains in light of valuation resistance and sector volatility.
Palantir Technologies (PLTR, $157.17, -.99%) extended its recent losing streak as profit-taking and heavy short interest pressure the high-beta analytics stock, despite ongoing contract wins and an expanding federal business pipeline.youtube
Rio Tinto Group (RIO, $62.33, -.57%) stabilized as global commodity prices trended sideways. Investors remain attentive to tariff risks and the outlook for Chinese industrial demand.
IPO Activity (NYSE/Nasdaq)
Cantor Equity Partners IV, Inc. (CEPF) at $10.00 (closed $10.12, +1.2%).
Commodities & Cryptocurrencies Closing Prices
- Gold: Steady at $3,423.90/oz, holding a narrow range as global macro volatility persisted.
- Silver: $36.70/oz.
- Oil (WTI): Hovered near $64.47/barrel, -.51%
- Bitcoin: Traded at $109,970.
