U.S. Stock Market News and Insights on September 25, 2025
- Major indexes fall: U.S. stocks dropped for a third straight session, with the S&P 500 and Nasdaq each down about 0.5% and the Dow Jones off 0.4% [1]. This pullback comes after all three indices notched record-high closes earlier in the week [2], ending the market’s recent rally.
- Strong economy sparks Fed uncertainty: Fresh data showed the economy running hot – second-quarter GDP was revised up to +3.8% annualized and weekly jobless claims fell to 218,000, a 7-month low [3]. The robust reports fueled doubts about further Fed rate cuts, pressuring stocks [4].
- Broad sector weakness: Declines were broad-based across 11 S&P 500 sectors. Health care shares lagged after a new import probe into medical devices sent medtech stocks plunging 4–11% [5]. Energy was a rare outperformer as oil prices held near recent highs around $65/barrel [6].
- Tech winners & losers:Intel spiked ~9% on reports Apple might take a stake in the chipmaker [7], and IBM surged 5% after a successful quantum-computing trial with HSBC [8]. In contrast, heavyweight tech names stumbled – Tesla slid over 4% and Oracle sank 5.6% amid profit-taking and financing concerns [9].
- Earnings hits and misses:Accenture beat earnings forecasts and raised its outlook, yet shares edged lower [10]. CarMax plummeted almost 20% to five-year lows after a big earnings miss [11]. After the close, Costco topped profit estimates with $5.87 EPS on $86.2 B revenue [12] [13], drawing attention in late trading.
- Corporate headlines:Amazon agreed to pay $2.5 billion to settle an FTC lawsuit over Prime memberships [14], nudging its stock down. Starbucks announced a $1 billion restructuring to close underperforming stores and cut 900 jobs in corporate and retail roles [15], as it seeks efficiency gains.
Market Indices & Sectors at a Glance
Wall Street’s September rally hit a wall on Thursday as all three major indexes extended their slide. The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average each fell roughly half a percent, marking the third straight day of losses [16]. This losing streak interrupted what had been a strong run: through Monday, the indices had climbed to record highs before momentum shifted mid-week [17]. Traders used the recent high valuations as an excuse to take profits. “With the S&P pricing in 23–24 times expected earnings and ~15% annualized earnings growth over the next five years, that sounds pretty rich to me,” noted one chief investment officer, reflecting on stretched stock valuations [18]. Indeed, earlier in the week Fed Chair Jerome Powell cautioned that equity prices appeared high, evoking former Chair Greenspan’s “irrational exuberance” warning [19] [20]. Those valuation concerns, combined with fresh economic news, triggered a broad risk-off tone on Sept. 25.
Nearly every sector of the market pulled back. Defensive groups like utilities and consumer staples slipped alongside growth sectors, showing the decline was widespread [21] [22]. Notably, the healthcare sector saw acute pressure. The U.S. Commerce Department announced a new probe into medical device imports, which sent medtech stocks tumbling across the board [23]. Companies in medical equipment – from GE HealthCare and Becton Dickinson to Stryker and ResMed – fell between 4% and 11% on the day [24]. The S&P 500’s health-care equipment index dropped about 2% as analysts warned the investigation could pose an overhang on companies with global supply chains [25] [26].
There were few places for investors to hide, but energy stocks provided some relative strength. Oil prices have been climbing – U.S. crude futures (WTI) hovered around $65.15 per barrel after a 2% jump the day prior [27]. That helped lift the S&P energy index, which was the best-performing sector the previous session [28] and remained resilient on Thursday. Higher fuel costs and a surprise drop in U.S. crude inventories earlier in the week bolstered oil producers [29]. Overall, however, the majority of sectors finished in the red, and declining stocks far outnumbered advancers on both the NYSE and Nasdaq exchanges [30].
Red-Hot Economic Data Fuels Fed Jitters
Fresh economic reports released on September 25 painted a picture of an economy gathering strength – a double-edged sword for markets anticipating easier monetary policy. The Commerce Department’s final revision of Q2 GDP showed the U.S. economy grew at an annual 3.8% pace last quarter, even faster than previously estimated (3.3%) [31]. This marks the fastest GDP growth in nearly two years, powered by robust consumer spending and business investment. Meanwhile, the Labor Department reported initial jobless claims fell by 14,000 to 218,000 in the latest week [32], hitting the lowest level since early spring. Fewer Americans filing for unemployment indicates a still-tight labor market. Additionally, new data showed a rebound in durable goods orders last month and essentially flat existing home sales in August [33] – further signs that the economy is holding up.
Normally, such strength would be welcome news. But for investors, these upside surprises cast doubt on how aggressively the Federal Reserve will ease up on interest rates. Just last week, the Fed cut its benchmark rate by 0.25% – the first rate reduction since December – citing some softening in the job market [34]. Markets had been pricing in a series of additional cuts to follow. Now, the combination of surging GDP and solid employment data “is kind of confusing in that… it calls into question how much the Fed may cut rates again” this year, observed Peter Tuz of Chase Investment Counsel [35]. In other words, a stronger economy could give the Fed cover to pause or slow its pace of cuts, contrary to prior expectations.
Fed officials’ commentary on Thursday struck a cautious tone. Chicago Fed President Austan Goolsbee voiced unease about easing too fast, warning that cutting rates “too quickly” could be risky with inflation still above target [36]. San Francisco Fed President Mary Daly echoed that sentiment, affirming that more rate reductions will likely be needed “over time,” but emphasizing the need to “move slowly” and carefully [37]. Their remarks highlight the Federal Reserve’s delicate balancing act: fostering growth and employment while preventing inflation from reigniting. Earlier in the week, Chair Powell similarly stressed the “tightrope” the Fed must walk in upcoming decisions [38] [39].
Traders responded to the data and Fed signals by adjusting rate expectations. According to the CME FedWatch tool, the probability of another 0.25% rate cut at the Fed’s late-October meeting fell to about 83%, down from 92% just a day earlier [40]. In the bond market, short-term Treasury yields jumped on the strong economic news, reflecting bets that policy might stay tighter for longer [41]. The 10-year Treasury yield ticked up to roughly 4.17%, a fresh high for the week [42]. The U.S. dollar also strengthened modestly on the data [43]. All told, the “good news is bad news” dynamic was in full effect – with positive economic momentum undermining hopes for easier monetary policy, and thus weighing on stocks.
Investors are now looking ahead to the Fed’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) index, due Friday morning. The August PCE report will be closely watched for any sign of cooling price pressures [44]. Even more pivotal could be next week’s September jobs report, which will indicate whether the labor market is indeed weakening or remains resilient [45]. Those releases could significantly shape the Fed’s course into its late-October and December meetings. As one market strategist noted, there’s “mixed economic data” at play, and it has many participants refocusing on the inflation side of the outlook [46] [47]. Until there’s clarity on whether inflation is sustainably easing, the Fed is likely to proceed carefully – and the market’s next move may hinge on that clarity.
Corporate Earnings Roundup: Hits, Misses & Stock Moves
Even amid macroeconomic jitters, company-specific news drove some of the biggest stock swings on September 25. In the earnings arena, results were a mixed bag. Before the opening bell, consulting giant Accenture (ACN) delivered stronger-than-expected quarterly numbers. The firm reported fiscal Q4 earnings of $3.03 per share, about $0.06 above analyst estimates, on revenue of $17.6 billion [48]. Accenture even issued an upbeat forecast for the year ahead – guiding well above Wall Street’s consensus – signaling confidence in corporate IT spending [49]. Ordinarily such a beat-and-raise would lift a stock, but Accenture’s share price fell about 0.7% in morning trading [50]. Analysts suggested that after a long run-up, the good news was already priced in, and investors used the opportunity to take profits.
If Accenture’s dip was a mild surprise, CarMax (KMX) delivered a true disappointment. The used-car retail chain announced dismal results for its fiscal second quarter. Earnings came in at just $0.64 per share, missing estimates by a wide $0.40 margin, while revenue of $6.6 billion badly undershot the ~$7 billion expected [51]. CarMax cited weaker demand and pricing pressures in the used-auto market. The miss sent CarMax stock into freefall – it crashed roughly 20% on Thursday, by far the worst one-day drop across the S&P 500 [52]. In fact, shares hit their lowest level in over five years [53] [54]. The wipeout underscored how high valuations and high expectations leave no room for error this late in the economic cycle, especially in interest rate–sensitive sectors like auto retail.
After the market closed, attention turned to Costco Wholesale (COST), which reported its fiscal Q4 earnings. The warehouse retail giant beat profit forecasts, posting $2.61 billion in net income for the quarter, or about $5.87 per share [55] [56]. That topped the $5.81 consensus and was up from $5.29 a year earlier. Revenue was $86.16 billion, essentially in line with expectations (analysts anticipated $86.18 B) [57]. The solid results suggest consumer demand at Costco remains healthy, aided by its membership model and value proposition. In initial after-hours trading, Costco’s stock reacted modestly – early indications did not show a major price swing – as investors weighed the slight top-line miss against the earnings beat. The company’s commentary on membership trends and inflation will be parsed for insight into consumer spending as we head into the holiday quarter.
Beyond earnings, corporate news and rumors stirred several notable stock moves:
- Chipmaker Intel (INTC) saw its stock surge nearly 9%, topping the S&P 500 leaderboard. The catalyst was a report (via Bloomberg) that Apple was in talks to buy a strategic stake in Intel [58]. Such an investment, if it materializes, could bolster Intel’s foundry business and deepen ties with a major chip customer (Apple). The rumor followed news earlier in the week that Intel is exploring partnerships – including approaches to TSMC – to regain its technological edge [59]. While no deal is confirmed, the mere prospect of Apple’s support ignited bullishness among traders, coming after Intel’s stock had been rebounding on optimism around AI and PC demand.
- IBM (IBM) shares leapt about 5%, ranking among the Dow’s top gainers. The jump came after HSBC disclosed a “positive trial” using IBM’s quantum computing systems for algorithmic bond trading [60]. The successful experiment suggests IBM’s investment in quantum technology may yield practical financial applications. It also spurred hopes that IBM can rejuvenate growth by commercializing cutting-edge tech for enterprise customers. IBM’s rally provided a boost to the Dow Jones index, offsetting some weakness elsewhere.
- On the downside, Tesla (TSLA) fell over 4% on Thursday [61], extending a pullback after its recent strong run. There was no single bad headline for Tesla; rather, investors appeared to rotate out of some high-flying momentum stocks amid rising Treasury yields. Analysts also noted that traditional automakers have been aggressive with EV offerings and price cuts, raising competitive pressures. Separately, the ongoing UAW strike affecting Tesla’s rivals (GM and Ford) could paradoxically be a near-term negative for Tesla’s stock – if investors speculate that union actions might spread or that Tesla could face pressure to boost worker pay. Regardless, Tesla’s slide contributed significantly to the Nasdaq’s weakness.
- Oracle (ORCL) shares continued to retreat, sliding about 5.6% for a third consecutive daily decline [62]. Earlier in the week the enterprise software firm had reached all-time highs, but sentiment turned after a report that Oracle is seeking to raise $15 billion via a bond offering [63]. That large debt issuance, reportedly to fund its Cerner acquisition and AI investments, raised questions about Oracle’s balance sheet and signaled that management sees an opportune moment to lock in financing. Combined with some profit-taking after Oracle’s huge year-to-date gains, this pushed the stock into a mini-slump. Even after the dip, Oracle remains up dramatically in 2025, but its rich valuation – over 20 times forward earnings – has made it sensitive to any hint of growth or financing challenges.
- Micron Technology (MU) also struggled, falling roughly 3%. This added to its decline on Wednesday, when the memory-chip maker reported record quarterly sales but offered a cautious outlook [64]. Micron’s results, announced after Tuesday’s close, showed improvement in demand for memory chips (DRAM and NAND) thanks to AI servers, yet the company is still navigating a supply glut in certain segments. The stock’s two-day selloff suggests traders took profits after a strong pre-earnings rally, as attention shifts to Micron’s margin recovery timeline and capex plans.
Elsewhere, two household-name companies made news with legal and strategic updates. Amazon (AMZN) agreed to pay a hefty $2.5 billion to settle a Federal Trade Commission lawsuit [65]. The FTC had accused Amazon of enrolling customers into its Prime subscription service without proper consent (“dark pattern” tactics). Under the settlement, $1.5 billion will fund customer refunds and $1 billion serves as a civil penalty [66]. While $2.5 billion is a sizeable sum (about a week’s worth of Amazon’s revenue), investors seemed relieved to have the issue resolved – Amazon’s stock dipped only about 0.5–1% on the day [67]. Clearing the regulatory overhang could be positive longer-term, though Amazon still faces separate antitrust actions.
And in the consumer sector, Starbucks (SBUX) unveiled a sweeping restructuring plan aimed at streamlining its operations. The coffee chain will invest $1 billion in measures including closing roughly 1% of its 11,400 North American stores (primarily underperforming locations) and laying off about 900 corporate employees [68]. These cuts come on top of 1,100 job eliminations earlier this year, as Starbucks adapts to post-pandemic shifts in customer traffic and tries to reduce costs. The company said front-line retail staff in closing stores will be offered roles at nearby locations, mitigating impact on baristas. Starbucks’ stock was flat on the news [69], suggesting investors were neither shocked nor exuberant – many had anticipated efficiency moves under the relatively new CEO. The restructuring underscores how even successful consumer brands are tightening belts amid high labor costs and evolving consumer habits (like more drive-thru and mobile ordering, less in-café lingering).
Notably, there were no major mergers or CEO changes announced on this day among S&P 500 companies. The market saw plenty of speculation – for instance, the Intel–Apple stake rumor could be viewed as a strategic investment in lieu of an acquisition [70]. But no blockbuster M&A deals or high-profile executive departures were confirmed on September 25. Investors remain alert for any surprise corporate shakeups, especially as volatile market conditions sometimes spur consolidation, but on this particular day the headlines were driven more by earnings and policy than by mergers or leadership turnover.
Pre-Market and After-Hours Trading Highlights
Before the opening bell on Thursday, U.S. stock futures were under pressure as traders absorbed the morning’s potent economic data. The strong GDP revision and low jobless claims triggered a selloff in equity futures, with S&P 500 e-mini futures down about 0.5% pre-market [71]. Investors feared that a robust economy might give the Fed less reason to cut rates, an outlook that began to be priced in even before regular trading commenced. The Vanguard S&P 500 ETF (VOO), a proxy for the broad market, was indicated down roughly 0.5% in pre-market trading [72] on those Fed jitters.
In pre-market action, several earnings-driven moves stood out. As mentioned, CarMax shares were in free-fall even before the open – plunging 18% pre-market after its disappointing profit report [73]. That set the stage for the stock’s steep drop once trading opened, and served as an ominous signal for the retail sector. Homebuilder KB Home (KBH) also traded lower pre-market, sliding over 1%. KB Home had posted better-than-expected earnings the evening prior, but issued cautious guidance that full-year revenue would likely come in below consensus forecasts [74]. The downbeat outlook on housing activity led to modest selling of KBH shares ahead of the bell, reflecting ongoing concerns about higher mortgage rates slowing the housing market.
On the corporate news front, Starbucks made its restructuring announcement early in the day, which, as noted, left the stock relatively unchanged in pre-market trading [75]. Likewise, the Amazon FTC settlement news broke overnight – Amazon’s stock showed little reaction in thin pre-market volumes, after an initial slight uptick when the news first hit wire services around midnight. In general, the tone before market open was cautious, with many market participants digesting the fast-evolving interest rate outlook.
After the market close, focus shifted to earnings releases and any late-breaking developments. The headline was Costco’s earnings report, as detailed above, which came out at 4:15 PM ET. Following the solid (if not spectacular) results, Costco’s stock initially fluctuated in extended trading. Traders will be listening to Costco’s earnings call for color on consumer spending trends, membership renewals, and inflation in product costs. Also reporting after hours was athletic apparel maker Nike, which scheduled its quarterly results for later that evening. (Nike’s earnings are technically on Sept. 30 by the calendar, but the report was expected post-close due to scheduling on the West Coast.) Any surprises from Nike could influence retail and apparel stocks in the next session.
Market participants also kept an eye on any late Fed commentary or macro news. Around 5:00 PM ET, San Francisco Fed’s Mary Daly gave remarks (at a scheduled event) reinforcing the message that while rate cuts are likely on the horizon, they will proceed gradually [76]. Her comments, coming after the close, largely echoed what was already known from earlier in the day and thus didn’t roil after-hours index futures.
Looking at after-hours trading in equity index futures on Thursday night, there was a tentative stabilizing. S&P 500 futures ticked slightly higher by about 0.1%, as traders deemed the day’s sell-off perhaps somewhat overdone. With the crucial PCE inflation report due the next morning, however, volumes were light and many big investors chose to wait for more data before making bold moves. The CBOE Volatility Index (VIX), often called Wall Street’s “fear gauge,” had spiked above 18 during the day’s downturn, but eased back in after-hours, indicating a modest calming of nerves.
Overall, September 25, 2025 was a day where strong economic news collided with market expectations, resulting in a notable stock market pullback. Expert opinion was divided on whether this is a healthy correction or the start of a deeper drawdown. What’s clear is that investors are now intensely focused on the Federal Reserve’s next steps. As one strategist remarked, “There’s been mixed economic data… it makes people focus more on the inflation side” of the equation [77]. With critical inflation and employment reports on deck, the market’s near-term direction likely hinges on whether the data validates the Fed’s hopeful outlook on cooling prices – or forces a rethink of the easy-money bets that had buoyed stocks to record highs.
Sources: Major news outlets and market reports from September 25, 2025 were used in compiling this summary, including Reuters [78] [79] [80], Bloomberg, Investopedia [81] [82] [83], Yahoo Finance, and company press releases. Relevant quotes and data points are cited inline above.
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