LIVE MARKETS-US stocks take a breather after Powell-induced rally

ReutersAug 25, 2025 2:42 PM

Nasdaq edges green, S&P 500, Dow dip
Staples weakest S&P 500 sector; Comm Svcs leads gainers
Euro STOXX 600 index off ~0.1%
Dollar, gold ~flat; crude up >1.5%; bitcoin dips
US 10-Year Treasury yield rises to ~4.29%

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US STOCKS TAKE A BREATHER AFTER POWELL-INDUCED RALLY

The main U.S. stock indexes are mixed with just modest changes in the early stages of trading, following a strong rally to close out the trading week on Friday after Fed Chair Jerome Powell opened the door to a possible rate cut at the central bank's upcoming meeting.

Expectations for a cut of at least 25 basis points at the Fed's September meeting now stand at 86.2%, according to CME's FedWatch Tool, up from 84.7% in the prior session and the 82.7% a week ago.

Still some analysts are not convinced the Fed will move to lower rates in September. Ed Yardeni, president and chief investment strategist at Yardeni Research, is noting on Sunday that Powell did not mention that "a few indicators, including August's CPI and employment reports, might convince the FOMC to hold off on easing if they are hotter than expected, as we think likely," and called it the firm's base-case scenario.

Of the 11 major S&P 500 .SPX sectors, only Communication Services .SPLRCL and Tech .SPLRCT are in positive territory, while Consumer Staples .SPLRCS is the biggest laggard.

On the economic front, new home sale units dropped 0.6% to a seasonally adjusted annualized rate of 652,000 units last month, the Commerce Department said, following a sharp upward revision to the prior month's sales pace.

Below is your market snapshot:

(Chuck Mikolajczak)

EARLIER ON LIVE MARKETS:

S&P 500 INDEX: WILL LAST WEEK'S BUY THE DIP STILL HAVE ZIP? CLICK HERE

THE HEALING NATURE OF FISCAL STIMULUS CLICK HERE

WEAK USD SELLING SIGNAL INTO MONTH-END - BARCLAYS CLICK HERE

STOXX DIPS, RENEWABLES DRAG CLICK HERE

EUROPE BEFORE THE BELL: GIVING BACK GAINS CLICK HERE

THE 'WHY' MATTERS FOR RALLIES, AND RATE CUTS CLICK HERE

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