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Wall Street Ends Down; Tesla Gains 2%; Nvidia and Alphabet Rise 1%; Strategy and Coinbase Sink 4%

TigerAug 26, 2025 12:26 AM

Wall Street stocks ended lower on Monday as investors parsed the outlook for U.S. interest rates and looked ahead to AI chipmaker Nvidia's quarterly earnings this week while digesting a rally on Friday that lifted the Dow Jones Industrial Average to a record high close.

Market Snapshot

The S&P 500 declined 0.43% to end the session at 6,439.32 points. The Nasdaq declined 0.22% to 21,449.29 points, while the Dow Jones Industrial Average declined 0.77% to 45,282.47 points.

Market Movers

Nvidia - Nvidia rose 1%. The leading maker of artificial-intelligence chips is scheduled to post quarterly earnings later this week. The stock closed up 1.7% on Friday but ended the week lower, marking a second consecutive weekly loss. It’s the longest losing streak since April 4, when Nvidia fell for three weeks in a row, according to Dow Jones Market Data. Shares have gained 35% this year.

Tesla - Tesla stock rose 1.9%. News that the $7,500 federal EV purchase tax credit might be around a little longer than expected could have helped. Recently, the Internal Revenue Service said that if an EV buyer signs a contract by Sept. 30, they will lock in the tax benefit, even if the car isn’t delivered by Sept. 30, when the credit is due to end.

Alphabet - Alphabet shares gained 1.2%, hitting another record high. Apple is in early talks to use Google's AI model Gemini to power a revamped version of its voice assistant Siri, Bloomberg News reported last week, citing people with knowledge of the matter.

Intel - Intel fell 1% to $24.55. The company said Friday that it had reached an agreement for the Trump Administration to take a 9.9% stake in the chip maker. Under the terms of the deal, the U.S. government will make an investment of $8.9 billion in Intel shares at $20.47 each. The nearly 10% stake, which makes the government the largest single investor in Intel, will be funded by $5.7 billion in unpaid Chips Act grants and a $3.2 billion award from the Secure Enclave national security program. Intel said the government’s investment will be passive, with no representation on its board or information rights. Intel shares closed Friday up 5.5%.

Strategy, Coinbase - Bitcoin-buyer Strategy, the company formerly known as MicroStrategy, and cryptocurrency exchange Coinbase Global were down 4.2% and 4.3%, respectively, mirroring a drop in Bitcoin. Strategy, separately, said it bought 3,081 Bitcoins for around $356.9 million, or $115,829 per token, from Aug. 18 to Aug. 24, according to a form filed with the U.S. Securities and Exchange Commission.

Wayfair, Williams-Sonoma, RH - Wayfair fell 5.9%, Williams-Sonoma was down 2.7%, and RH declined 5.3% after President Donald Trump said Friday the U.S. would launch an investigation intotariffs on furniture imports. Wayfair, for one, imports a significant amount of its furniture from Asia.

Keurig Dr Pepper - Keurig Dr Pepper slumped 11.5% after reaching anagreement to buy Amsterdam-listed coffee company JDE Peet’s for $18 billion, or €31.85 a share ($37.30). It would be a prelude to separating into two separately listed public companies, the coffee machine maker and beverage company said. Shares of JDE Peetended Monday’s session up 18% in Europe.

Verint - Verint Systems slipped 1.3% to $20.20 after confirming that private-equity from Thoma Bravo would acquire the software maker for $2 billion. Under the terms of the deal, Verint shareholders will receive $20.50 a share in cash, an 18% premium to Verint’s 10-day volume weighted average share price up to June 25, the last day before reports about a potential sale of the company.

PDD Holdings - U.S.-listed shares of PDD Holdings reversed earlier gains to fall 0.9%. Second-quarter earnings at the Chinese e-commerce giant and operator of shopping platform Temu easily surpassed analysts’ estimates. While sales rose 7%, vice president of finance Jun Liu said revenue growth “further moderated this quarter amid intense competition,” and added that investments may continue to weigh on short-term profitability.

Crescent Energy, Vital Energy - Crescent Energy said it had reached an agreement to purchase Vital Energy in an all-stock transaction valued at $3.1 billion, including debt. Vital Energy shareholders will receive about 1.91 Crescent shares for each share of Vital held, representing a 15% premium to Vital shares’ volume-weighted average price as of Aug. 22. “This transaction is transformative for Crescent and consistent with our strategy,” Chairman John Goff said in a statement. Crescent Energy tumbled 4%, while Vital Energy surged 14.5% to $18.08.

American Eagle Outfitters - American Eagle Outfitters fell 2.7% to $12.50 after the stock was downgraded to Underperform from Neutral at BofA Securities. Analysts cut their price target to $10 from $11, representing 20% downside from Monday’s price. While the retailer’s recent collaboration with actress Sydney Sweeney caused shares to rise, “we do not assign a high likelihood that momentum from this campaign can fully inflect the business over the long run,” the BofA team wrote, citing concerns about tariffs and challenges within the AE and Aerie brands.

Market News

US Commerce Voids Biden's $7.4 Billion Semiconductor Research Grant Deal

The U.S. Commerce Department said on Monday that one of its agencies will take over operational responsibility to oversee $7.4 billion in semiconductor research funds, saying that the private non-profit established under the Biden administration to handle that function "served as a semiconductor slush fund."

The National Institute of Standards and Technology will assume operational responsibility for the National Semiconductor Technology Center, a public-private consortium established under Democratic President Joe Biden, from the National Center for the Advancement of Semiconductor Technology (Natcast).

The department said the Biden administration illegally created Natcast, and as a result the agreement granting the organization up to $7.4 billion in taxpayer money is invalid.

Musk Sues Apple, OpenAI, Saying They Hurt AI Competition

Elon Musk accused Apple Inc. and OpenAI in a lawsuit of unfairly favoring the artificial intelligence company across iPhones and thwarting competition for other chatbot makers.

Musk’s X and xAI seek billions of dollars in damages in the suit filed Monday in federal court in Fort Worth, Texas, arguing that Apple’s decision to integrate OpenAI into the iPhone’s operating system inhibits rivalry and innovation within the AI industry and harms consumers by depriving them of choice.

The billionaire founder of xAI Holdings, which now houses the Grok AI team and X social network, said Apple makes it impossible for anyone other than OpenAI’s ChatGPT to reach the top of the App Store charts, a sought-after global spotlight for app developers.

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