Opening Comment — Monday, August 25, 2025
DJIA: 45,631.74, up 846.24
S&P 500: 6,466.91, up 96.74
NASDAQ: 21,496.54, up 396.23
Stocks lower ahead of new home sales data
Stock futures are lower Monday morning as investors are looking forward to economic data from the Federal Reserve (Fed) Banks of Chicago and Dallas, along with July’s new home sales report. As of 7:17 AM ET, the Dow and the S&P 500 Index are both decreasing 0.2%. The Nasdaq 100 is falling 0.3% relative to fair value on the GLOBEX.
U.S. equities were higher on Friday following Fed Chair Jerome Powell’s speech at the Jackson Hole symposium indicating that a rate reduction could be on the table during the September policy meeting. He highlighted signs of economic deceleration and acknowledged the influence of trade and immigration measures. The Dow was up 1.9%, while the tech-heavy Nasdaq Composite also rose 1.9%. The S&P 500 increased 1.5% with 10 of 11 sectors finishing in positive territory. The Consumer Discretionary sector was the top performer, rising 3.2%, while the Consumer Staples sector was the bottom performer, falling 0.4%.
On the data front, the Chicago Fed’s National Activity Index for July is expected to come in at negative 0.11, down from the prior month’s negative 0.10. Meanwhile, new home sales are projected to have been at an annualized 630,000 pace in July versus the prior month’s 627,000 pace, corresponding to a 0.5% month-over-month (MOM) increase versus the prior month’s increase of 0.6%. The Dallas Fed’s Texas Manufacturing Outlook Survey for August will be released, with the general business activity index expected to come in at negative 1.7, down from the prior month’s 0.9. The finalized reading of July building permits will be released today, with the preliminary reading showing an annualized 1.35 million corresponding to a MOM decrease of 2.8%.
Across the pond, European stocks are mostly lower in mid-day trading as Germany’s Ifo Business Climate Index for August increased more than expected.
Overnight in Asia, stocks were higher as Japan’s nationwide department store sales in July declined by 6.2% year-over-year and the country’s finalized June Leading Index was revised slightly lower.
In FOREX trading, the dollar is higher ahead of today’s U.S. economic releases.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 0.7% higher at $64.12/barrel amid worries over Russian exports due to potential additional sanctions from the U.S. and further strikes from Ukraine.
In the metals complex, gold is 0.3% lower at $3,366.00/ounce following a strengthening dollar.
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