August 27, 2025
S&P futures flat Wednesday after U.S. equities gained Tuesday, with the S&P finishing just below its ATH. Leaders included A&D, pharma, semis, travel, credit cards, and apparel, while small caps and retail favorites also outperformed. Asia mixed (China weaker, Japan/South Korea/Australia higher), Europe little changed. Treasuries steady to slightly weaker long end. Dollar +0.3%, gold flat, Bitcoin –0.4%, WTI crude –0.4%.
Focus remains on NVDA earnings after the close, with expectations high amid scrutiny over AI capex, monetization, and competition. Markets also watching Friday’s core PCE (consensus +0.3% m/m, 2.9% y/y). Political pressure on the Fed continues after Trump’s push to oust Gov. Cook, though market reaction muted. Rate-cut odds stand at 87% for September, with ~55 bp priced for 2025. Tariffs back in focus as Treasury Secretary Bessent flagged revenues could top $500B annually; 50% tariffs on India took effect today.
No U.S. economic data today. Treasury auctions $70B in 5-year notes following a strong 2-year sale Tuesday. Thursday brings GDP revisions, claims, pending home sales, and a $44B 7-year auction.
Earnings/Corporate Updates:
- MDB: Beat/raise; Atlas acceleration, U.S. enterprise strength, margin gains.
- OKTA: Beat/raise; U.S. public sector and enterprise reacceleration standouts.
- PVH: Beat; raised FY revenue guidance, cost control, product initiatives.
- NCNO: Beat; mortgage rebound, Banker Advisor adoption, strong execution.
- ELAN: Up on S&P MidCap 400 inclusion.
- GOOS: Boosted by reports of $1.4T privatization bids.
- CBRL: Higher after announcing return to old logo.
- SATS: Interest in spectrum from Starlink and TMUS.
- XOM: Reportedly held talks with Rosneft on potential Russia re-entry.
U.S. equities closed higher Tuesday (Dow +0.30%, S&P 500 +0.41%, Nasdaq +0.44%, Russell 2000 +0.83%) in a quiet session, reversing Monday’s weakness and extending gains from last Friday’s rally. Outperformance came from A&D, engineering & construction, semis, networking, airlines, credit cards, apparel, and travel & leisure. Rails, beverages, energy, and insurers lagged. Treasuries firmed with curve steepening; 2Y yields down ~5 bp and the 2Y/30Y spread at its widest since Jan-22. The $69B 2Y auction was well received. Dollar index –0.2%, gold +0.5%, Bitcoin +0.3%, WTI crude –2.4%.
Political risk remained in focus after Trump’s attempt to oust Fed Governor Cook; Cook said he has no authority, and her law firm will file suit. Markets took the move in stride, though it reinforces fiscal dominance and Fed independence concerns. Attention now turns to NVDA earnings Wednesday and Friday’s core PCE inflation print. Trump also threatened 200% tariffs on China over rare earths and signaled retaliation against countries imposing digital taxes.
Economic data showed consumer confidence slightly ahead of estimates, though labor perceptions weakened for an eighth month and inflation expectations rose to 6.2%. Durable goods orders fell 2.8% m/m, but ex-transportation rose 1.1%, best since Sep-24. Richmond Fed index improved, but prices paid jumped. Housing data pointed to further shelter disinflation. Treasury supply continues this week with $70B in 5s Wednesday and $44B in 7s Thursday.
Sector Highlights
Industrials (+1.0%), Financials (+0.8%), Health Care (+0.6%), and Tech (+0.5%) led Tuesday’s gains, with strength in semis, aerospace, and financial services. Consumer Discretionary (+0.4%) and Materials (+0.4%) also supported. Defensives underperformed as Consumer Staples (–0.5%), Utilities (+0.2%), and Real Estate (–0.3%) trailed, alongside Energy (–0.2%) and Communication Services (–0.3%)
Health Care
- LLY +5.9%: Anti-obesity pill trial met weight-loss targets.
- UNH –1.5%: DoJ probe reportedly extends beyond Medicare to Optum Rx and physician payments.
Industrials
- BA: To sell 103 planes to Korean Air for $36.2B.
- HEI: Takeaways positive on aerospace aftermarket demand and higher FSG margins.
Information Technology
- SMTC +15.1%: Q2 beat; Q3 guide mixed with strength in datacenter and high-end consumer, weakness in CopperEdge.
- AMD +2.0%: Upgraded to Buy at Truist; checks point to rising hyperscaler demand.
- MDB, OKTA, PVH: Set to report after the close.
Communication Services
- T: Buying spectrum from SATS for $23B cash.
- SATS +70.3%: Surged on deal news.
Financials
- IBKR: Boosted by news it will join the S&P 500.
- CG: Acquiring Intelliflo from IVZ for up to $200M.
- WU: Helped by insider purchase disclosure.
Materials
- AVY: To acquire Meridian Adhesives’ flooring business for $390M.
Consumer Discretionary
- VFC +6.2%: Upgraded to Outperform at Baird; improving Vans reset expected.
- GOOS +3.2%: Upgraded to Outperform at Baird; stronger BTS spend, better macro.
- LAD +2.3%: Expanded buyback by $750M.
Eco Data Releases | Wednesday August 27th, 2025
No high-level releases today
S&P 500 Constituent Earnings Announcements | Wednesday August 27th, 2025
Data sourced from FactSet Research Systems Inc.
