US close: Stocks gain as inflation fears ease

25th Aug 2026 22:44

(Sharecast News) - Subdued economic data and a sharp drop in oil prices gave Wall Street stocks a lift on Tuesday, as concerns about inflationary pressures eased.

The Dow and S&P 500 both gained 0.3%, while renewed demand for tech stocks - which had borne the brunt of recent selling - lifted the Nasdaq Composite 0.7%.

"The Nasdaq's sell off in recent days had started to look like an anomaly, so a pullback is to be expected, especially as we lead up to Nvidia's results tomorrow evening," said Kathleen Brooks, research director at XTB.

Brent fell 3.9% to settle at $88.58 a barrel by the closing bell, while WTI dropped 3.1% to $82.36, amid reports that mediators from Pakiston and Qatar were still working hard on diplomatic efforts.

Also helping to ease concerns was a Reuters report that the US was beginning to send diplomats back to the Middle East who had been evacuated due to earlier tensions. Personnel that had left sites in Lebanon, Israel, Saudi Arabia, Baghdad and Iraq were returning to their posts, sources told the publication.

The latest developments came after the US issued new sanctions on Iran, with Treasury Secretary Scott Bessent warning any nation doing business with the country would also be punished.

Bessent said the move was "the single greatest financial offensive ever" against Iran, aimed to "tighten the noose and block every potential source of revenue". He also revealed that a major financial institution would be sanctioned later this week.

On home shores, investors were digesting a string of economic data, which mostly came in below expectations.

Making headlines was the Conference Board's US consumer confidence index, which fell to 89.4 in August from 90.2 in July, hitting its lowest in seven months, with people citing inflation as a major concern.

Meanwhile, new home sales dropped 10.5% to a six-month low of 607,000 in July, according to the US Census Bureau, coming in well below the 620,000 expected by the market.

In other news, the US housing price index flatlined in June after rising 0.3% the month before, while the Richmond Fed manufacturing index fell to 4 in August from 5 in July.

In equity news, all eyes were on Nvidia ahead of the chip giant's quarterly results after the close on Wednesday, with the stock rising 2.2% during the session.

"Nvidia [...] has broken back above the $210 mark," Brooks said. "The recovery comes after its longest losing streak in four years. Nvidia's shares had seven days of consecutive losses. Considering the company is expected to post revenues of more than $92bn for last quarter, an extended sell-off was unlikely to continue."

Dow Jones - Risers

Merck & Co. Inc. (MRK) $156.45 3.84%

Goldman Sachs Group Inc. (GS) $1,058.88 2.18%

Microsoft Corp. (MSFT) $491.71 1.61%

International Business Machines Corporation (CDI) (IBM) $234.19 1.36%

Amgen Inc. (AMGN) $442.24 1.25%

Intel Corp. (INTC) $87.48 0.60%

Walt Disney Co. (DIS) $111.25 0.58%

Cisco Systems Inc. (CSCO) $111.11 0.56%

Visa Inc. (V) $384.14 0.45%

Boeing Co. (BA) $211.08 0.29%

Dow Jones - Fallers

Dow Chemical Co. (DOW) $30.16 -4.07%

Nike Inc. (NKE) $39.48 -3.12%

McDonald's Corp. (MCD) $268.10 -1.63%

Salesforce.Com Inc. (CRM) $205.69 -1.61%

Chevron Corp. (CVX) $199.89 -1.58%

Procter & Gamble Co. (PG) $145.40 -0.82%

Unitedhealth Group Inc. (UNH) $396.59 -0.54%

Apple Inc. (AAPL) $309.90 -0.41%

American Express Co. (AXP) $335.95 -0.41%

Coca-Cola Co. (KO) $91.64 -0.38%

S&P 500 - Risers

Cadence Design Systems Inc. (CDNS) $331.90 5.42%

Mattel Inc. (MAT) $15.26 5.02%

Illumina Inc. (ILMN) $224.99 4.73%

Synopsys Inc. (SNPS) $408.79 4.68%

Alaska Air Group Inc. (ALK) $43.33 4.26%

Advanced Micro Devices Inc. (AMD) $479.18 4.24%

CenturyLink Inc. (LUMN) $5.89 3.88%

Lam Research Corp. (LRCX) $314.66 3.85%

Merck & Co. Inc. (MRK) $156.45 3.84%

McKesson Corp. (MCK) $905.09 3.58%

S&P 500 - Fallers

Coterra Energy Inc. (CTRA) $32.56 -8.62%

Bath & Body Works, Inc. (BBWI) $17.58 -8.29%

Albemarle Corp. (ALB) $133.18 -5.89%

Diamondback Energy Inc. (FANG) $199.89 -4.85%

Under Armour Inc. Class A (UAA) $5.12 -4.66%

Apache Corp. (APA) $41.35 -4.61%

Under Armour, Inc. (UA) $5.00 -4.40%

Coty Inc. Class A (COTY) $2.67 -4.30%

LyondellBasell Industries (LYB) $62.55 -4.06%

Target Corp. (TGT) $163.47 -3.78%

Nasdaq 100 - Risers

Cadence Design Systems Inc. (CDNS) $331.90 5.42%

Illumina Inc. (ILMN) $224.99 4.73%

Synopsys Inc. (SNPS) $408.79 4.68%

Lam Research Corp. (LRCX) $314.66 3.85%

Mercadolibre Inc. (MELI) $1,997.00 3.46%

Meta Platforms Inc. (META) $570.05 3.32%

Hasbro Inc (HAS) $96.74 3.17%

Netflix Inc. (NFLX) $82.23 2.81%

NetEase Inc. Ads (NTES) $128.80 2.69%

Cognizant Technology Solutions Corp. (CTSH) $63.06 2.55%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

Mondelez International Inc. (MDLZ) $62.99 -3.20%

Intuit Inc. (INTU) $357.46 -2.77%

Take-Two Interactive Software Inc. (TTWO) $232.93 -2.62%

Workday, Inc. (WDAY) $194.42 -2.52%

Fastenal Co. (FAST) $50.31 -2.47%

J.B. Hunt Transport Services Inc. (JBHT) $262.18 -2.41%

Kraft Heinz Co. (KHC) $25.32 -2.35%

Wynn Resorts Ltd. (WYNN) $98.74 -2.25%

Broadcom Inc. (AVGO) $356.74 -2.09%