Markets Slide for Third Day as Investors Brace for PCE Inflation Data

Major Indices Closed Lower :

S&P 500 (SPX): -0.50% to 6,604.73

Dow Jones (DJI): -0.38% to 45,947.32

Russell 2000 (RUT): -0.98% to 2,411.04

U.S. stock indexes declined for the third straight day on September 25, 2025, with the Nasdaq Composite, S&P 500, and Dow Jones Industrial Average falling 0.5%, 0.5%, and 0.4%, respectively, ahead of Friday’s PCE inflation data.

Bitcoin dropped 3.5% to below $110,000, impacting stocks like MARA Holdings (-9%) and MicroStrategy (-7%). West Texas Intermediate crude oil rose to $65.15 per barrel, gold futures gained 0.3% to $3,780, and the U.S. dollar index increased 0.7% to 98.52.

U.S. growth came in stronger than expected, with Q2 GDP revised to 3.8% from 3.3% as consumer spending rose 2.5%. Jobless claims eased to 218,000, durable goods orders rebounded, and housing data was mixed—flat existing sales but a 20% jump in new homes. The 10-year yield climbed to 4.18%. Markets now await the PCE report, forecast to show 2.7% inflation and a steady 2.9% core rate, which could guide the Fed’s October rate decision.

President Trump is set to sign an order placing TikTok’s U.S. operations under American control, involving Oracle and others, with ByteDance leasing the algorithm. Kodiak AI shares fell 16% in their trading debut (symbol: KDK). Former Fed chairs urged the Supreme Court to block Trump’s attempt to fire Fed governor Lisa Cook to preserve central bank independence.

Chinese stocks rose, with the Shanghai Composite and CSI 300 up 18-20% YTD, driven by AI and trade talk optimism. U.S. investigations into robotics, machinery, and medical device imports may lead to tariffs, targeting foreign supply chains like China’s PPE.

In the S&P 500, Intel surged 8.9% on reports of Apple investment talks (Apple +1.8%), IBM gained 5.2% after a quantum computing trial with HSBC, and Lithium Americas rose 22.6% following government stake rumors, with Albemarle up 4%.

CarMax plummeted 20% after missing Q2 earnings, Oracle fell 5.6% after a "sell" rating, Jabil dropped 6.7% despite beating forecasts, Tesla declined 4.4%, Micron fell 3%, and Amazon slipped 1% after a $2.5B FTC settlement.

Opendoor jumped 10.5% after Jane Street disclosed a 5.9% stake, with shares up 468% YTD. Starbucks slipped 0.5%, announcing store closures and 900 layoffs.

8:30 am- Personal income & Personal spending (Aug).

8:30 am- PCE index (Aug & YoY) and Core PCE index (Aug & YoY).

10:00 am- Consumer sentiment (final) (Sept).

The Dow declined -0.38%, closing at 45,947.32. Key support sits at 45,800.89; holding above could spark a rebound toward 46,108.47 and 46,181.41.

The index ended at 24,397.31. Key support lies at 24,282.62; holding above this level could open upside toward 24,441.84 and 24,533.57.

Closing at 6,604.72, the S&P is trading above support at 6,581.62. If buyers hold this level, the potential upside targets are 6,618.60 and 6,639.54.

SPY was trading at $658.14 pre-market, with support at $655.64 and potential upside targets at $659.22 and $660.97.

QQQ was trading at $593.15 pre-market, with key support at $592.16. Holding above this level keeps upside targets in play at $594.67 and $596.05.

IWM was trading at $238.96 pre-market. Support is nearby at $238.07, while the potential upside levels stand at $239.38 and $240.93.

SMH traded at $318.79 pre-market. Support lies at $316.29; a bounce could test $321.11 and $322.73.

SOXL was at $33.52 pre-market. Support at $33.12 must hold to fuel a move towards $33.92 and $34.28.

Company Overview- Tech-enabled customer engagement firm in five verticals, mainly tech/electronics; $3.47B market cap.

Revenue- $2.48B, up 4% YoY as reported, 2.6% constant currency.

EPS- Non-GAAP $2.78, $0.02 below guidance; GAAP $1.34.

Net Income- GAAP $88M for the quarter.

Margins- Adjusted EBITDA 14.5%, below plan due to excess capacity.

Q4 Guidance- Revenue $2.525B-$2.550B.

Strategic Focus- Gaining share via AI/CX/IT integration; strong iX suite demand.

CNXC was trading at $43.50 pre-market. Support is at $42.75, while the potential upside levels stand at $44 and $44.50.

EPS and Revenue- Adjusted loss of $0.16 per share, worse than last year's -$0.06 and analysts' -$0.04 expectation. Q4 revenue rose 41.4% YoY to $12.21M, slightly above $12.20M forecast. Net Income was at a quarterly loss of $7.06M.

LPTH was trading at $6.15 pre-market. Support is at $6.01, while the potential upside levels stand at $6.24 and $6.34.

Quarterly Results- KNOT Offshore Partners reported Q2 EPS of $0.20, beating estimates by $0.03, and quarterly revenue hit $87.06M, exceeding forecasts of $81.16M.

KNOP was trading at $9.51 pre-market. Support is at $9.298, while the potential upside levels stand at $9.60 and $9.68.