August 22, 2025
S&P futures up 0.2% Friday, after the S&P 500 fell for a fifth straight session Thursday, its longest losing streak since January. Mag 7 also extended losses. Asia traded mixed with strength in Greater China, while Australia and India lagged. Europe up ~0.3%. Treasuries slightly weaker with yields up ~1 bp, dollar index +0.1% after Thursday’s 0.4% gain. Gold -0.3%, Bitcoin futures +0.4%, WTI crude +0.1%.
Focus today is on Powell’s Jackson Hole speech (10 ET), with markets debating a dovish tilt. September cut odds have slipped to ~70% from ~85% last week, with just under 50 bp of easing now priced in vs nearly 65 bp earlier this week. Broader concerns persist around AI and global liquidity: reports that NVDA halted H20 chip-related production amid China’s homegrown chip push, while record 30-yr JGB yields stoked sovereign bond pressure.
Company updates:
- NVDA: Told suppliers to stop H20 chip production.
- GOOGL: Won $10B cloud contract from META over six years.
- SBUX: Expects bids for China business within two weeks.
- WDAY: Q2 beat on subscription revenue and operating margin; guidance raise seen driven by Paradox deal.
- INTU: FQ4 ahead but FY26 guidance light on weaker GBSG/Mailchimp.
- ZM: Boosted by strength in Enterprise segment.
- ROST: Q2 slightly ahead; FY guidance reinstated, citing sharp July rebound and strong BTS trends.
- AKZOY: Activist Cevian Capital disclosed 3% stake.
U.S. equities finished mostly lower on Thursday (Dow (0.34%), S&P 500 (0.40%), Nasdaq (0.34%), Russell 2000 +0.21%), though off the day’s worst levels. The S&P 500 and Nasdaq each declined for a fifth time in the past six sessions, weighed down by renewed weakness in big-box retail, homebuilders, and AI-linked names. Treasury yields moved higher by 3–5 bp across the curve following hawkish Fedspeak and sticky inflation signals in PMI data. The dollar index gained 0.4%, gold slipped 0.2%, Bitcoin futures fell 2%, and WTI crude rose 1.3%.
Macro drivers dominated the session. Initial jobless claims rose to 235K, above estimates, with continuing claims at their highest level since 2021. The August Philly Fed Index surprised to the downside at -0.3, while prices paid rose to their highest since mid-2022. S&P Global flash PMIs beat across manufacturing and services, with output and hiring at multi-year highs but price pressures reaccelerating due to tariffs. July existing home sales beat expectations, climbing 2% back above the 4M pace. Fedspeak leaned hawkish, with Kansas City’s Schmid (voter) and Cleveland’s Hammack (non-voter) cautioning against near-term cuts. Markets are now pricing a 71% chance of a September 25 bp cut, down from 82% yesterday.
Sector Highlights
Sector performance was mixed. Energy (+0.71%) and Materials (+0.26%) outperformed, supported by gains in metals and crude. Communication Services (-0.30%) and Financials (-0.31%) were relatively resilient. Industrials (-0.34%), Health Care (-0.37%), Real Estate (-0.39%), and Technology (-0.39%) also fell modestly. Consumer Staples (-1.18%) was the weakest sector, dragged down by Walmart, while Utilities (-0.71%) and Consumer Discretionary (-0.68%) also underperformed.
- Consumer Staples: WMT (-4.5%) missed Q2 EPS expectations, citing tariff headwinds, though comps rose +4.6% and FY guidance was raised. COTY (-21.6%) fell sharply after weaker-than-expected FQ4 results and cautious outlook.
- Consumer Discretionary: CBRL (-7.2%) dropped on backlash to its rebrand.
- Information Technology: NDSN (+3%) posted a beat on Q3 EPS and revenue, raised buyback authorization. MNDY (-1.1%) downgraded to neutral at BofA on self-serve growth concerns.
- Communication Services: DAY (+2.4%) will be acquired by Thoma Bravo at $70/share. META reportedly paused AI hiring following recent spending.
- Materials: IP (+2.2%) agreed to sell its global cellulose fibers business for $1.5B.
- Health Care: GILD (-2.2%) fell after CVS declined to cover its new drug Yeztugo.
- Industrials: BA reportedly near deal to sell 500 planes to China.
- Energy: Sector strength supported by crude rally; no major stock-specific headlines
Eco Data Releases | Friday August 22nd, 2025
S&P 500 Constituent Earnings Announcements | Friday August 22nd, 2025
No constituents report today
Data sourced from FactSet Research Systems Inc.
