New York: U.S. stock markets slipped on Monday, 25 August 2025, as investors took profits following last week’s rally and turned their focus to upcoming inflation data and major corporate earnings.

Major indices close lower

The S&P 500 fell 0.4%, closing at 6,439.32. The Dow Jones Industrial Average dropped 0.8%, or 349.3 points, to end at 45,282.47 after touching record highs last week. The Nasdaq Composite declined 0.2%, settling at 21,449.29, while the Russell 2000 small-cap index lost 1%, finishing at 2,339.17.

Sector performance and key movers

Healthcare stocks weighed heavily on the market, while consumer-focused names also saw declines.

  • Keurig Dr Pepper slumped after announcing an $18 billion acquisition of JDE Peet’s.

  • Nvidia gained nearly 1% ahead of its earnings report, expected later this week.

  • Apple eked out small gains despite facing a lawsuit from Elon Musk’s companies over AI-related technologies.

  • Furniture retailers like RH and Wayfair dropped following tariff threats from former U.S. President Donald Trump.

  • Intel rose around 2% as the U.S. government acquired a 10% stake under the CHIPS Act.

  • Pinduoduo (PDD) surged almost 6% on robust quarterly earnings.

  • Cryptocurrencies and related stocks fell, with bitcoin and ether sliding alongside companies like Coinbase.

    • Focus on Fed’s next move

    Investors are now awaiting Nvidia’s earnings and Friday’s core inflation data, which could shape expectations for Federal Reserve policy. Market participants remain hopeful for rate cuts but are cautious amid mixed economic signals.