US stocks mixed as Dow sinks, S&P 500 nears record, Nasdaq rides AI boom — Nvidia earnings jolt but GDP growth surprises Wall street

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The U.S. stock market opened cautiously on 28 August 2025 as investors weighed the latest corporate earnings and key economic data.

Nvidia’s latest earnings shook Wall Street, the Dow dipped, and investors weighed signals from retail and the Fed.

Traders are carefully monitoring earnings reports, GDP revisions, and inflation indicators to assess the Federal Reserve’s likely next steps.

US Stock Market Major Performance Today

• Nasdaq Composite: Up nearly 0.8%, driven by tech resilience and AI enthusiasm.
• S&P 500: Holding steady near record highs, up around 0.4% on the week.
• Dow Jones Industrial Average: Lagging, down about 0.6%, weighed by weakness in industrials and retail volatility.

The chart underscores the market’s split personality: while the tech-heavy Nasdaq keeps climbing on AI momentum, the Dow’s underperformance reflects broader economic and political uncertainties.

Why is the Dow Jones Facing Pressure Today?

The Dow Jones Industrial Average fell 0.2% during early trading. Select industrial and technology stocks contributed to the decline, signaling caution among investors. Nvidia’s quarterly earnings played a key role. Although the company reported record revenue, its cautious guidance on future AI chip demand raised concerns among traders.
Despite solid underlying U.S. economic growth, Dow investors are weighing potential slowdowns in certain sectors. This sensitivity to earnings news underscores how corporate performance is increasingly driving market sentiment.
Key numbers for the Dow today:

• Current Price: 455.39
• Intraday High: 457.71
• Intraday Low: 455.07

The Dow’s muted performance today suggests that investors are taking a wait-and-see approach. Strong GDP growth provides confidence, but earnings-driven volatility keeps caution high.

Is the S&P 500 Holding Up?

The S&P 500 stayed largely flat during trading, reflecting a balance between optimism over corporate results and caution about broader economic signals. Its stability indicates that investors are taking a patient approach, awaiting July’s inflation figures to gauge the Federal Reserve’s potential next moves.

Sectors like consumer discretionary and industrials helped offset losses in technology and energy, stabilizing the index.

Quick S&P 500 snapshot:

• Current SPY Price: 646.39 USD
• Change: -0.24 (-0.00037%)

The S&P 500’s sideways movement today suggests that while there is confidence in economic fundamentals, traders remain sensitive to macroeconomic data that could impact interest rates.

Why Is the Nasdaq 100 Rising Despite Nvidia’s Volatility?

The Nasdaq 100 gained 0.2%, supported by select technology stocks even as Nvidia faced short-term selling pressure. Nvidia’s earnings highlighted record sales in AI hardware, but its cautious outlook for future growth caused some investors to pull back. Other semiconductor and software companies absorbed the volatility, helping the Nasdaq maintain positive momentum.

Investors are closely watching technology for signals on AI adoption trends, supply chain pressures, and profit margins. These factors will influence Nasdaq performance over the coming weeks.

Nasdaq today:

• Current QQQ Price: 574.50 USD
• Intraday High: 576.50
• Intraday Low: 572.53

Tech earnings remain the main driver for Nasdaq performance, showing how closely the index is tied to sector-specific developments.

Why did Nvidia shares fall despite strong earnings?

Nvidia reported blockbuster numbers again, with second-quarter revenue surging 56% year-over-year to $46.7 billion. Earnings of $1.05 per share topped Wall Street estimates. Yet, the stock edged lower, slipping around 1% in early Thursday trading.

The issue wasn’t growth—it was guidance and China. Nvidia projected $54 billion in revenue for the current quarter, only modestly above analyst expectations of $53.1 billion. Crucially, the forecast assumed zero sales of its H20 AI chips in China, highlighting regulatory and geopolitical hurdles.

That omission rattled traders. Nvidia’s data center revenue of $41.1 billion, which accounts for 88% of sales, came in a touch below estimates. For a stock that makes up about 8% of the S&P 500, even slight misses carry outsized market consequences.

What does this mean for the AI trade and Wall Street sentiment?

Despite the pullback, most analysts saw the sell-off as overdone. JPMorgan, Citi, and Bernstein all raised price targets after the report, underscoring confidence that Nvidia remains the linchpin of the AI boom.

“Investors should be buying the pullback,” said David Wagner of Aptus Capital Advisors, noting that Nvidia is still guiding 50%+ revenue growth at a $50 billion quarterly run rate.

Other chipmakers bounced back quickly: Broadcom and Micron both rose about 2%, while AI-focused Snowflake jumped 19% after its own earnings beat. For now, the market is still treating Nvidia as validation of the AI-driven rally, not the end of it.

How did the broader market react today?

The Dow Jones Industrial Average fell 80 points (0.2%), pressured by Nvidia and mixed retail earnings. The S&P 500 was little changed, hovering near Wednesday’s record high, while the Nasdaq rose 0.2%, buoyed by tech resilience.

Other market indicators:

• Treasury yields: The 10-year held steady at 4.24%.
• U.S. dollar: Weakened against major currencies including the yen and Swiss franc.
• Bitcoin: Stabilized near $113,000.

The GDP revision surprised economists, with Q2 growth revised higher to 3.3% annualized, topping expectations of 3.1%. That reinforced the resilience of the U.S. economy, even as markets await Friday’s PCE inflation report, expected at 0.2% monthly and 2.6% annual.

Which retail stocks are moving after earnings?

Earnings from major U.S. retailers added more texture to Thursday’s trading session:

• Dollar General (DG): Shares jumped 6% after reporting Q2 earnings of $1.86 per share on $10.73 billion revenue, both above estimates. The company also raised full-year guidance, sending a strong signal about consumer spending at the low end.
• Bath & Body Works (BBWI): Stock tumbled nearly 10% after posting weaker-than-expected adjusted EPS of 37 cents (vs. 38 cents forecast), despite revenue of $1.55 billion matching estimates.
• Best Buy (BBY): Beat earnings ($1.28 vs. $1.21 est.) and revenue ($9.44B vs. $9.24B est.), but kept guidance unchanged due to tariff uncertainty under Trump’s new trade policy. Shares slipped 1%.
• Cracker Barrel (CBRL): Continued to fall, down 3% midday, as backlash over its logo rebrand—amplified by criticism from President Donald Trump—overshadowed fundamentals.

Why is the Federal Reserve in the headlines today?

The political spotlight fell on the Federal Reserve, where Governor Lisa Cook sued President Trump after he attempted to fire her earlier this week. The lawsuit, filed in Washington, D.C., argues the move is “unprecedented and illegal.”

Markets so far have largely shrugged off the political drama, but any prolonged conflict over Fed independence could inject volatility, particularly with inflation data and future interest rate moves still central to investor confidence.

Top Stocks Today

• Nvidia (NVDA):
  • Reported record quarterly revenue but provided cautious guidance on AI chip demand.
  • Shares faced short-term selling pressure, influencing broader tech sector sentiment.
  • Key driver for Nasdaq volatility and tech-focused ETFs.
• Apple (AAPL):
  • Showed moderate gains, supported by strong iPhone sales and steady services revenue.
  • Helped offset weakness from other tech stocks in the Nasdaq.
  • Investor focus remains on upcoming product announcements and supply chain updates.
• Microsoft (MSFT):
  • Trading slightly higher as cloud and AI software divisions continue growth.
  • Boosted tech index performance despite Nvidia’s pullback.
  • Analysts watching AI adoption trends for enterprise software.
• Dow Industrials Leaders (e.g., Boeing, Caterpillar):
  • Mixed performance with some declines offset by steady earnings from select industrials.
  • Overall Dow slightly down as weaker industrials and tech balanced gains in other sectors.
• SPDR ETFs (SPY, DIA, QQQ):
  • SPY flat, DIA down slightly, QQQ up on tech resilience.
  • Reflect broader market sentiment and sector rotations.

These stocks are shaping market movements today, with tech driving Nasdaq gains and industrials influencing the Dow’s performance.

What Are the Key Market Numbers Today?

Here’s a quick look at today’s trading figures:

What should investors watch next?

The market’s next big test arrives Friday with the July PCE inflation report, the Fed’s preferred gauge. A hotter-than-expected reading could revive rate hike fears, while a softer print may extend the stock market’s record-setting rally.

For now, traders remain focused on:

• Nvidia’s next steps in China – Any deal on H20 chip sales could significantly lift revenue.
• Rotation from mega-cap tech – Analysts suggest money may flow into undervalued sectors if Big Tech consolidates.
• Retail earnings signals – From Dollar General’s strength to Bath & Body Works’ stumble, consumer trends remain mixed.

Investors should remain alert to these factors, as they are likely to dictate short-term trends and investment opportunities.

1. Inflation Report: Expected later this week, it could influence the Federal Reserve’s next moves.
2. Earnings Updates: Tech and industrials will continue to guide market direction.
3. Interest Rate Outlook: Analysts are anticipating cautious signals from central bank policymakers.
4. Sector Rotation: Shifts from tech to defensive sectors may occur if volatility rises.

FAQs:

What caused the Dow to slide in today’s trading?
The Dow slipped due to cautious guidance from Nvidia’s earnings, which raised concerns about future tech demand, along with selective weakness in industrial and tech stocks.

Why is the Nasdaq rising despite Nvidia’s volatility?
The Nasdaq gained because other tech and semiconductor companies absorbed the selling pressure, showing resilience in the sector even as Nvidia faced short-term declines.