Market Wrap | Powell's Dovish Remarks Spark Rate Cut Hopes Amid Market Volatility

On August 25, 2025, the S&P 500 Index fell by 0.43%, the Dow Jones Industrial Average dropped by 0.77%, and the Nasdaq Composite Index declined by 0.22%. Federal Reserve Chairman Powell's recent dovish remarks at the global central bank meeting have heightened expectations for a rate cut in September, emphasizing downside employment risks and a shift to a simple 2% inflation target. Meanwhile, the U.S. August Markit composite PMI preliminary value reached 55.4, a 9-month high, indicating robust economic activity.

Based on the current market performance, several sectors underperformed the S&P 500, including utilities, healthcare, consumer staples, materials, industrials, real estate, and financials. Conversely, the energy and communication services sectors bucked the trend and saw gains.

Federal Reserve Chair Jerome Powell's recent dovish remarks have increased market expectations for a rate cut, suggesting a potential shift in monetary policy. Meanwhile, the U.S. National Economic Council Chair announced that Intel will receive chip manufacturing funds in exchange for government equity, highlighting a significant government intervention in the tech sector. Additionally, South Korean airline, Korean Air, is expected to announce an order for approximately 100 Boeing aircraft, potentially boosting Boeing's market position. Lastly, Nvidia launched its Jetson AGX Thor computing platform for robotics, aiming to expand its influence in the robotics and automotive industries.