tl;dr
U.S. stocks rebounded on Sept. 26, 2025, ending a three-day slide as inflation data met expectations, but major indices still fell for the week. Persistent inflation, Trump's tariffs, and mixed corporate performances highlighted the tension between market resilience and macroeconomic risks.
On September 26, 2025, U.S. stock markets closed higher for the first time in five days, snapping a three-session losing streak as the latest inflation data aligned with expectations. However, the major indexes—the Dow Jones Industrial Average, S&P 500, and Nasdaq—still ended the week lower, remaining near record highs amid a mix of resilience and uncertainty. The Personal Consumption Expenditures (PCE) inflation report, the Federal Reserve’s preferred gauge, showed prices rose 2.7% annually in August, with core inflation also climbing to 2.9%, marking the fourth consecutive month of acceleration. While the numbers matched economist forecasts, they underscored persistent inflationary pressures, fueled in part by President Donald Trump’s recent tariffs on imports, which are expected to push prices higher for consumers.
The 10-year Treasury yield edged up to 4.19%, reflecting ongoing concerns about the economic impact of the tariffs and the potential for further rate hikes. Meanwhile, the U.S. dollar index weakened to 98.15, its lowest level since early 2022, as investors weighed the implications of the Federal Reserve’s policy trajectory. The energy sector saw modest gains, with West Texas Intermediate crude oil rising 0.5% to $65.30 per barrel, while gold futures advanced 0.7% to $3,795. Bitcoin, however, remained under pressure, trading just below $110,000 after a 10% pullback from its August peak.
The day’s standout performer was Electronic Arts (EA), which surged 15% after reports surfaced that the video game giant was nearing a $50 billion leveraged buyout led by Saudi Arabia’s Public Investment Fund and private equity firm Silver Lake. The potential deal, if finalized, would mark one of the largest buyouts in history. Conversely, RH (formerly Restoration Hardware) fell over 4% after Trump announced new tariffs on furniture imports, while Paccar (PCAR), parent company of truck brands Peterbilt and Kenworth, gained 5% amid optimism about the impact of the tariffs on domestic manufacturing.
Intel (INTC) continued its upward momentum, jumping 4.4% for a fourth consecutive session, bolstered by rumors of a potential Apple (AAPL) investment and a $5 billion collaboration with Nvidia (NVDA). Boeing (BA) rose 3.6% after the FAA confirmed it would ease restrictions on 737 Max and 787 deliveries, a move that could accelerate production. Meanwhile, Oracle (ORCL) slipped 2.7% as analysts from Rothschild Redburn downgraded the stock to “sell,” citing overvaluation of its cloud business.
Despite the weekly declines, the S&P 500 and Nasdaq remained on track for their fifth consecutive month of gains, with the tech-heavy Nasdaq up over 16% year-to-date. However, the market’s resilience was tempered by broader economic headwinds, including the fallout from Trump’s tariffs, which are expected to increase costs for consumers and businesses alike. Economists predict inflation will remain elevated, with the Fed likely to maintain a cautious approach to rate cuts amid lingering price pressures.
As investors grappled with these dynamics, the market’s focus shifted to corporate earnings, geopolitical developments, and the evolving impact of AI-driven innovation. The week’s events highlighted the delicate balance between optimism about technological advancements and the challenges posed by rising costs and regulatory shifts. With major indexes still near all-time highs, the question remained: how long could this momentum last in the face of growing macroeconomic uncertainty?