{"id":23657,"date":"2025-08-26T13:22:44","date_gmt":"2025-08-26T13:22:44","guid":{"rendered":"https:\/\/www.infinox.com\/global\/?p=23657"},"modified":"2025-08-26T13:22:53","modified_gmt":"2025-08-26T13:22:53","slug":"stocks-close-lower-as-nvidia-fails-to-prop-up-nasdaq","status":"publish","type":"post","link":"https:\/\/www.infinox.com\/global\/en\/stocks-close-lower-as-nvidia-fails-to-prop-up-nasdaq\/","title":{"rendered":"Stocks Close Lower as Nvidia Fails to Prop Up Nasdaq"},"content":{"rendered":"\n
Wall Street lost ground on Monday, pulling back from last week\u2019s strong rally as caution resurfaced ahead of Nvidia\u2019s earnings and key macro releases later in the week. The Dow led declines after Friday\u2019s record-setting surge, while the broader market softened as investors reassessed the balance between Federal Reserve policy signals and near-term risks. An early lift from chipmakers, including Nvidia, proved short-lived as gains faded into the close. Traders remain attentive to Powell\u2019s message of possible September easing, but with uncertainties still clouding the outlook, momentum slowed as participants awaited fresh catalysts.<\/p>\n\n\n\n
Key Takeaways:<\/strong><\/p>\n\n\n\n
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Dow Slides After Friday\u2019s Rally:<\/strong> The Dow Jones Industrial Average lost 349.27 points, or 0.77%, to close at 45,282.47, pulling back from last week\u2019s record run. Financials and industrials led the retreat, with investors taking profits after Friday\u2019s Powell-driven surge.\u00a0<\/li>\n\n\n\n
S&P 500 Eases Back:<\/strong> The broad market index fell 0.43% to settle at 6,439.32, as weakness in consumer and industrial stocks offset gains in semiconductors. Despite Monday\u2019s loss, the index remains within striking distance of its highs.<\/li>\n\n\n\n
Nasdaq Slips Despite Nvidia Strength:<\/strong> The Nasdaq Composite shed 0.22% to end at 21,449.29, reversing earlier gains powered by Nvidia. The AI chipmaker rose around 1% after a wave of bullish analyst endorsements ahead of its earnings, but the broader tech sector struggled to sustain momentum.\u00a0<\/li>\n\n\n\n
Europe Markets Close Lower:<\/strong> The Stoxx 600 fell 0.45% as political and economic uncertainty weighed. France led losses with the CAC 40 down 1.56% after Prime Minister Fran\u00e7ois Bayrou announced plans to seek a confidence vote on budget policy. Germany\u2019s DAX slipped 0.4% and Italy\u2019s FTSE MIB fell 0.2%, while London markets were closed. Bond yields reflected rising stress, with France\u2019s 10-year climbing to 3.508% and spreads over Germany widening to the highest since April. Ifo data showed German business morale at a 15-month high, but economists warned growth prospects remain weak after Q2 GDP contracted 0.3%. Spain stood out positively, with Q2 GDP up 0.7% and annual growth forecast at 2.5%.<\/li>\n\n\n\n
Asia Stocks Push Higher:<\/strong> Asian equities climbed strongly as Powell\u2019s remarks boosted risk appetite. Hong Kong\u2019s Hang Seng surged 2.11% toward a four-year peak, with Baidu up 6.01%, Zijin Mining 5.94%, and Nio soaring 14.73%. Mainland China\u2019s CSI 300 gained 1.39% to reach a 37-month high, supported by property stocks after Shanghai eased housing rules. Taiwan\u2019s Taiex rose 2.47%, South Korea\u2019s Kospi gained 1.14%, while Japan\u2019s Nikkei added 0.27% and Australia\u2019s ASX 200 rose 0.22%. India\u2019s Nifty 50 gained 0.35%, with regional sentiment lifted across the board.<\/li>\n\n\n\n
Oil Prices Advance:<\/strong> Brent crude rose 1.58% to $68.80 and WTI gained 1.79% to $64.80. Gains reflected concerns over Russian supply after Ukrainian drone strikes caused fresh damage at the Ust-Luga export terminal and Novoshakhtinsk refinery. The supply risks offset the impact of OPEC+ increasing production, with further adjustments due in September.<\/li>\n\n\n\n
Consumer Credit Weakens and Housing Slows:<\/strong> Signs of strain emerged in US household finances, with VantageScore reporting that late repayments over 90 days jumped 109% among superprime borrowers and 47% among prime borrowers compared with a year ago. At the same time, new home sales fell 0.6% in July to an annualised 652,000 units, with declines in the Midwest and South offset by an 11.7% gain in the West. The figures underline the pressures of high borrowing costs on both consumers and the housing market.<\/li>\n<\/ul>\n\n\n\n
FX Today:<\/strong><\/p>\n\n\n\n\n<\/figure>\n<\/figure>\n\n\n\n
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EUR\/USD Slides Sharply Below 1.1700:<\/strong> The euro fell 0.91% to 1.1610 after trading between 1.1723 and 1.1610, with a wide red candle confirming a decisive bearish reversal. Price action broke beneath the 50-day SMA at 1.1649, signalling weakening momentum after repeated failures near mid-August highs. The pair has shifted from consolidation since July\u2019s peak above 1.1900 into a pattern of lower highs, reinforcing fading bullish control. The immediate focus is on whether 1.1600 can act as a stabilising base; a daily close below would confirm breakdown potential toward 1.1500-1.1480, while only a recovery above 1.1700 would ease downside pressure and reopen room to 1.1800.<\/li>\n\n\n\n
GBP\/USD Slips Back as Rally Fades:<\/strong> Sterling retreated 0.54% to 1.3454, swinging between 1.3519 and 1.3446 before closing with a firm red candle. The pair continues to orbit the 200-day SMA at 1.3424, with the 50-day SMA at 1.3492 acting as near-term resistance and the 100-day reinforcing congestion around current levels. Structurally, repeated failures to sustain above the 50-day average point to fading bullish momentum, leaving the broader backdrop consolidative. A decisive close below 1.3400 would expose 1.3300, while a rebound above 1.3500 could reassert strength and pave the way back to 1.3600.<\/li>\n\n\n\n
USD\/CAD Holds Firm Below 1.3900 Barrier:<\/strong> The Canadian dollar eased as USD\/CAD edged 0.30% higher to 1.3861, consolidating within a 1.3828\u20131.3866 range. The pair remains underpinned above the 50-day SMA at 1.3726 and the 100-day at 1.3778, with momentum supported by a sequence of higher lows since mid-July. Meanwhile, Canada\u2019s retail sales rose as expected in June, increasing 1.5% month on month to C$70.25 billion ($50.49 billion) after a 1.2% contraction in May, with volumes up by a similar rate. Structurally, the breakout above 1.3800 highlighted stronger bullish control, though repeated stalls beneath 1.3900 keep the uptrend capped; the bias stays constructive while 1.3770\u20131.3720 holds, with buyers eyeing another attempt to clear 1.3900 and the 1.3950\u20131.4000 zone.<\/li>\n\n\n\n
USD\/CHF Extends Rebound Above 0.8000:<\/strong> The franc weakened as USD\/CHF advanced 0.75% to 0.8068 after climbing from 0.7994 to 0.8074. A strong green candle confirmed a rebound from the 0.8000 threshold, restoring traction above the 50-day SMA at 0.8030. The broader structure remains capped by the 100-day SMA at 0.8140 and the 200-day at 0.8540, but higher lows since mid-July highlight demand on dips. Near-term focus is on whether the pair can sustain above 0.8030 to target 0.8100\u20130.8150; a break beyond would open room toward 0.8250, while a failure to hold 0.8000 risks a renewed slide to 0.7920 and potentially the July low at 0.7820.<\/li>\n\n\n\n
USD\/JPY Bounces From 50-Day SMA Support:<\/strong> The yen weakened as USD\/JPY closed 0.64% higher at 147.83, climbing from 146.75 to 147.94. A firm green candle signalled a rebound from the 50-day SMA at 146.85, reasserting near-term support. Price action continues to consolidate between 146.50 and 149.50 after stalling above 150 earlier in August, leaving the pair caught between medium-term strength and longer-term hesitation. The 100-day SMA at 145.45 underpins structure, while the 200-day SMA at 149.04 caps upside momentum. Focus is now on whether buyers can push into 148.50\u2013149.00; a sustained break above 149.50 would revive bullish momentum toward 151.00, while failure at resistance risks a renewed pullback to 146.50.<\/li>\n\n\n\n
Gold Slips but Holds Above $3,365 Support:<\/strong> Gold eased 0.18% to close at $3,365 after moving between $3,376 and $3,360, printing a small-bodied red candle that reflected mild selling pressure. The metal continues to consolidate around the 50-day SMA at $3,348 and the 100-day SMA at $3,311, holding a neutral mid-range structure after peaking near $3,480 earlier this month. Structurally, gold remains supported by the 200-day SMA at $3,045, while higher lows since May highlight dip-buying interest. Bias has flattened as momentum stalls beneath the $3,400 barrier, with attention on the $3,348\u2013$3,340 zone for near-term support. A hold above this region could allow another test of $3,400\u2013$3,420 resistance, while a break below $3,340 risks exposing the $3,300\u2013$3,280 area.<\/li>\n<\/ul>\n\n\n\n
Market Movers:<\/strong><\/p>\n\n\n\n
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Furniture Stocks Slump on Trump Tariff Threat:<\/strong> Shares of furniture retailers fell sharply after President Trump announced that imported furniture will face tariffs at an undetermined rate. RH and Wayfair both closed down more than 5%, while Williams-Sonoma dropped over 2%.<\/li>\n\n\n\n
Cryptocurrency-Exposed Firms Hit by Bitcoin Drop:<\/strong> Stocks sensitive to cryptocurrency markets weakened after Bitcoin fell more than 4% to a six-week low. MicroStrategy, Coinbase Global, MARA Holdings and Galaxy Digital each recorded losses exceeding 2%.<\/li>\n\n\n\n
Vaccine Makers Retreat on Regulatory Concerns:<\/strong> Makers of mRNA vaccines declined significantly after The Daily Beast reported the US government may move to pull mRNA vaccines from the market \u201cwithin months.\u201d Moderna fell more than 6%, BioNTech dropped over 5%, Novavax lost more than 4%, and Pfizer declined over 2%.<\/li>\n\n\n\n
Casino Stocks Rally on Macau Revenue Data:<\/strong> Casino operators with exposure to Macau jumped after data showed gaming revenue in the first 17 days of August was up 11% year-on-year. Wynn Resorts gained more than 3%, while Las Vegas Sands rose over 2%.<\/li>\n\n\n\n
Keurig Dr Pepper Slides on Acquisition News:<\/strong> Keurig Dr Pepper plunged more than 11% after announcing an $18.4 billion deal to buy JDE Peet NV, making it the biggest loser in both the S&P 500 and the Nasdaq 100.<\/li>\n<\/ul>\n\n\n\n
Markets opened the week on a softer footing as last Friday\u2019s exuberance gave way to renewed caution. Nvidia\u2019s upcoming results and Powell\u2019s September policy signal remain the key catalysts, but signs of strain in US consumers and housing added to the more restrained tone. Europe struggled under political and economic weight while Asia surged on renewed policy optimism, underscoring the uneven global backdrop. With yields edging higher, oil climbing on supply risks, and sector-specific news driving volatility, investors are likely to stay focused on earnings, data and policy guidance as the week unfolds.<\/p>\n","protected":false},"excerpt":{"rendered":"
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