Brown bear on a rock

S&P 500 falls as rate cut optimism fizzles

The S&P 500 gave up early gains to close down 0.3% while the Nasdaq 100 eked out a 0.1% advance and the Russell 2000 outperformed, rising 0.5%.

Nia Warfield, Luke Kawa

9/5/25 3:53PM

An initial burst of optimism over a soft US jobs report making a Federal Reserve rate cut this month a foregone conclusion didn’t last long.

The S&P 500 gave up early gains to close down 0.3%. The Nasdaq 100 eked out a 0.1% advance, and the Russell 2000 outperformed with a 0.5% rise, though both indexes finished well off their highs of the day.

Real estate was the best-performing S&P sector ETF, while financials and energy each fell more than 1%.

The day’s bright spots were led by Broadcom, which rose 9.4% after the chipmaker beat top- and bottom-line estimates for Q3 and said its 2026 AI revenue outlook will “improve significantly” with OpenAI reportedly booked as a new customer. At the same time, Nvidia and No. 3 US chip player Advanced Micro Devices were down 2.7% and 6.6%, respectively, as their rival’s gain was their pain. Elsewhere...

Lululemon stretched 18.6% lower after the athleisure giant topped Q2 estimates but massively slashed its full-year outlook.

Kenvue sank 9.2% following a Wall Street Journal report that Health and Human Services Secretary Robert F. Kennedy Jr. will likely tie autism to prenatal use of Tylenol.

Palantir shares were slightly bruised by the momentum-driven sell-off, falling about 2%, with its slide pushing the price well below the 50-day moving average.

Robinhood and Interactive Brokers tumbled amid a broad reversal in momentum stocks.

(Robinhood Markets Inc. is the parent company of Sherwood Media, an independently operated media company subject to certain legal and regulatory restrictions.)

Tesla jumped more than 3% after the company proposed an unprecedented roughly $1 trillion pay package for CEO Elon Musk, proxy filings show.

Lucid surged nearly 14% following six days of losses after headlines misidentified Cantor Fitzgerald’s lower split-adjusted price target as a good thing.

Salesforce shares rebounded 2.8% after slipping Thursday following the tech company’s better-than-expected fiscal Q2 earnings results.

Toby Bochan, Luke Kawa

Market Wrap

US stocks close at record highs on US-China trade truce optimism

The S&P 500, Nasdaq 100, and Russell 2000 all started off the week with record highs ahead of a big earnings week, with five of the members of the Magnificent 7 reporting.

Max Knoblauch7h

Bullish options flows boost Rivian

EV maker Rivian is up nearly 5% on Monday afternoon as bullish options flows lift the stock ahead of its third-quarter earnings, set to drop next week.

According to Bloomberg, Rivian call options traded outnumber put options more than five to one, for a put/call ratio of less than 0.2 as of 2:38 p.m. ET. That’s significantly less than the 20-day put/call average of 0.4. More than 116,000 call options have changed hands, more than 60% above the full-day average over the past 20 days.

Rivian’s upcoming earnings will measure the automaker’s sales ahead of the expiration of the $7,500 EV tax credit. Since September, Rivian has performed two rounds of layoffs as it seeks to cut costs amid the end of regulatory credits and ahead of next year’s lower-cost SUV launch.

Matt Phillips8h

Palantir inks defense deal with Poland, touches new intraday high

Palantir Technologies touched a new intraday high of $192.83 early Monday, as the company rode the China trade truce rally in AI tech stocks and retail favorites.

Palantir also signed a new deal to supply the government of Poland with data, AI, and cybersecurity software, according to Bloomberg.

Polish Minister of Defense Wladyslaw Kosiniak-Kamysz and Palantir CEO Alex Karp signed the letter of intent on the deal, about which few details were released. Polish officials did signal that they were interested in Palantir software systems for “battlefield management” and logistics. Up more than 150% this year, Palantir reports Q3 earnings on November 3.

Poland Signs Palantir, Anduril Deals Amid Record Army Spending

J. Edward Moreno9h

Intellia tanks as it pauses late-stage CRISPR gene-editing trials after one patient was hospitalized

Intellia dropped sharply on Monday after it announced that it’s pausing two late-stage CRISPR gene-editing trials because one patient was hospitalized with liver damage.

Intellia had also disclosed in May that a patient had experienced elevated liver enzymes. The news is a major setback for the company, which currently has no products on the market and is working on a one-time treatment for heart and nerve conditions.

The news dragged down other companies working on CRISPR treatments, including Beam Therapeutics Inc, Crispr Therapeutics, Editas Medicine, and Prime Medicine.

Luke Kawa9h

Gold craters as retail traders pull money from commodity ETFs

As its fierce rally begins to fade, it looks like retail traders are waving au revoir to gold.

JPMorgan strategist Arun Jain noted that retail traders have pulled about $120 million from commodity ETFs as of 11 a.m. ET on Monday, a level that stands in the 0.4th percentile relative to its one-year average. The SPDR Gold Shares ETF is down 2.8% as of 11:53 a.m. ET after suffering its worst loss since April 2013 last Tuesday. That day, retail had pulled just $50 million from commodity ETFs by 11 a.m.

The five-session average daily flows into the product hit an all-time high of nearly $1.1 billion last Monday as gold and silver had effectively become the new meme stocks, displaying strong momentum and heavy options activity.