On August 25, U.S. stocks rose as Treasury yields fell for the second consecutive day, boosting technology shares.
According to the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed up 160.24 points (0.30%) at 53,577.40. The S&P 500 index increased by 24.40 points (0.32%) to finish at 7,677.28, while the tech-heavy Nasdaq Composite rose by 171.11 points (0.66%) to close at 26,151.30.
CNBC reported that the decline in U.S. Treasury yields improved investor sentiment towards technology stocks. The benchmark 10-year Treasury yield fell by more than 7 basis points to 4.625%.
In anticipation of Nvidia's earnings report on August 26, semiconductor stocks also saw gains. Advanced Micro Devices (AMD) rose by 4.9%, and Micron Technology increased by 2.5%.
In contrast, consumer goods stocks struggled. Dick's Sporting Goods saw its stock plummet by 30% following its earnings report, while Walmart and Target shares fell by 1% and 4%, respectively.
The decline in consumer confidence and escalating trade tensions between the U.S. and Canada have weighed on consumer goods stocks.
On this day, the Conference Board announced that the preliminary consumer confidence index for August stood at 89.4 (1985=100), down 0.8 points from the previous month’s revised figure of 90.2. This figure fell short of market expectations of 90.2.
Canada announced it would impose retaliatory tariffs of up to 50% on approximately $20 billion worth of U.S. products in response to U.S. tariffs, escalating trade tensions between the two countries.
Brett Kenwell, a U.S. investment analyst at eToro, told CNBC, "While corporate earnings reports indicate that consumer spending remains solid, the market can withstand negative consumer sentiment. However, if actual consumption declines, it will be hard to ignore."
As consumer sentiment weakens, investors are focusing on the upcoming release of the revised U.S. second-quarter GDP and the July Personal Consumption Expenditures (PCE) price index on August 26.
Meanwhile, international oil prices continued to decline for the second day as concerns over U.S. sanctions against Iran eased.
October Brent crude fell by $3.59 (3.89%) to $88.58 per barrel, while October West Texas Intermediate (WTI) crude dropped by $2.65 (3.12%) to $82.36 per barrel.
* This article has been translated by AI.
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