U.S. stock markets experienced modest gains on Friday, August 22, 2025, as investors closely monitored the Federal Reserve's annual Jackson Hole Economic Policy Symposium for insights into future economic policy. The S&P 500 rose by 0.3%, the Dow Jones Industrial Average gained 273 points (0.6%), and the Nasdaq Composite saw a slight increase of 0.1%. This positive sentiment was accompanied by a dip in Treasury yields, with the 10-year yield falling to 4.30%.
The primary focus for market participants was Federal Reserve Chair Jerome Powell's address, themed "Labor Markets in Transition: Demographics, Productivity, and Macroeconomic Policy." Investors anticipated Powell's remarks to provide clarity on the future path of interest rates, particularly in light of recent economic data, including a weaker-than-expected jobs report. Market sentiment had been leaning towards a potential September rate cut, and Powell's commentary was expected to either confirm or temper these expectations. The Fed's stance on inflation, a persistent concern throughout 2025, remained a critical factor influencing monetary policy decisions.
In corporate news, Ross Stores reported a 2.8% increase in its share price following stronger-than-expected quarterly profits. The company's earnings per share were positively impacted by $0.11 due to lower-than-expected tariff-related costs. However, Ross Stores provided a cautious outlook for the third quarter and full-year 2025, forecasting earnings below estimates, largely attributed to ongoing tariff impacts. Meanwhile, Nio's U.S.-traded shares climbed 6.5% after initiating pre-sales for its new SUV, the ONVO L90, which is expected to boost third-quarter deliveries. Nio is also expanding its international market presence.
Conversely, Nvidia's stock declined by 1.3%. This dip occurred amid discussions about its valuation and reports that Chinese regulators advised domestic tech firms to halt orders for Nvidia's H20 AI processor due to security concerns. These actions followed remarks by U.S. Commerce Secretary Howard Lutnick, which were perceived as insulting by Chinese officials. Nvidia has stated it manages its supply chain to address market conditions and denies the presence of 'backdoors' in its chips. The U.S. government's technology sales policy towards China, including revenue-sharing arrangements for certain chip sales, continues to be a complex issue, balancing commercial interests with national security. The impact of U.S. tariffs on consumer prices, potentially contributing to inflation in late 2025 and into 2026, was also noted by economists, although businesses have partially absorbed these costs.