Tonight’s Highlights | U.S. Stock Futures Slide, Chinese Stocks Like Alibaba and Nio Buck Trend
On Friday (August 25) before the U.S. market open, the major index futures declined collectively.
As of this writing, Dow Jones futures were down 0.30%, S&P 500 futures fell 0.28%, and Nasdaq 100 futures dropped 0.39%.
On the individual stock front, Microsoft and Tesla each declined by about 0.5%, while most popular Chinese ADRs moved higher, with Alibaba up over 3% and Nio gaining nearly 6%.
Last Friday, Federal Reserve Chair Jerome Powell hinted at a potential rate cut in September during his speech at the Jackson Hole symposium, prompting investors to pile in, leading to gains across all three major indices, with the Dow Jones Industrial Average closing at a record high.
Powell noted that while short-term U.S. inflation risks lean upward, downside risks to employment are rising. Based on changes in the economic outlook and risk balance, the Fed’s monetary policy stance may need adjustment.
The CME FedWatch Tool indicates that the market currently assigns an 83.3% probability to a 25-basis-point rate cut in September, with a total cut of 50 to 75 basis points expected for the year, implying two or three cuts.
Adam Crisafulli, founder of Vital Knowledge, said: “We’re seeing potential capital rotation—from tech stocks to more cyclical and value-oriented ones. As long as expectations for an easing cycle strengthen, this momentum-driven outflow from tech could persist.”
Crisafulli acknowledged that this dynamic places significant pressure on the major earnings reports due this week. On Wednesday after the U.S. market close, “global stock king” Nvidia will release its quarterly earnings, followed by Dell Technologies and Marvell Technology on Thursday.
Crisafulli suggested that these companies could play a pivotal role in determining whether the tech stock rally resumes or if rotation trading gains further traction.
Beyond tech earnings, the July Personal Consumption Expenditures (PCE) Price Index, set for release on Friday, is also a focal point for traders, as it is a key inflation gauge closely watched by the Fed.
Company News
Strategy Purchases 3,081 Bitcoins for $356.9 Million Last Week
Strategy acquired 3,081 bitcoins last week for $356.9 million, at an average price of $115,829 per coin. The company now holds a total of 632,457 bitcoins. The funding came from $309.9 million in MSTR common stock ATM financing, $20.4 million in STRK ATM financing, and additional STRF ATM financing.
Pinduoduo Holdings Q2 Adjusted Net Profit Reaches ¥327.1 Billion, Exceeding Market Expectations
Pinduoduo Holdings released its unaudited financial results for Q2 2025. Q2 revenue was ¥1,039.8 billion, up 7% from ¥970.595 billion in the same period last year. Adjusted earnings per ADS were ¥22.07, surpassing the market’s expected ¥15.50, while adjusted net profit was ¥327.1 billion, exceeding the anticipated ¥223.9 billion but down 5% from ¥344.321 billion in Q2 2024.
Pinduoduo attributed the growth to ¥557.032 billion ($77.759 billion) in revenue from online marketing services and other businesses, a 13% increase from ¥491.159 billion in the prior year.
BeiGene: RoyaltyPharma Agrees to Pay $885 Million at Closing for Imdelltra Royalty Rights Outside China
BeiGene announced that it and its wholly-owned subsidiary BeiGene Switzerland have signed a royalty purchase agreement with RoyaltyPharma. RoyaltyPharma will pay $885 million at closing to acquire most of the mid-single-digit percentage royalty rights on annual net sales of the monoclonal antibody Imdelltra (Tarlatamab) outside China.
Additionally, BeiGene Switzerland has the option to sell further royalty rights by August 25, 2026, potentially earning up to an additional $65 million. The transaction is not a related-party deal and does not require shareholder approval. RoyaltyPharma is a global leader in biopharmaceutical royalty investments.
Musk Announces Open-Sourcing of Grok-2, Grok-3 to Follow in Six Months
Tesla CEO Elon Musk announced on X that xAI’s best model from last year, Grok-2.5 (effectively Grok-2), is now open-source, with Grok-3 set to follow in approximately six months. Musk also commented that xAI will soon surpass all companies except Google and eventually overtake Google, though he noted that Chinese companies will be the toughest competitors due to their vastly greater electricity resources and hardware-building prowess.