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Dow Hits Record High as Powell Signals Rate Cuts
The Dow Jones Industrial Average rallied to an all-time high on Friday (Aug 22, 2025) after Federal Reserve Chair Jerome Powell hinted the central bank could begin easing monetary policy next month.
The S&P 500 rose 1.52% to finish at 6,466.91, just shy of its own record, while the Nasdaq Composite gained 1.88% to settle at 21,496.53. The rally was fueled by a surge in megacap tech stocks: Alphabet and Amazon rose more than 3%, Tesla jumped 6%, and Meta gained over 2%. Nvidia added 1.7%.
Speaking at the Fed’s annual Jackson Hole gathering, Powell said the “balance of risks appear to be shifting” between employment and inflation, citing changes in tax, trade and immigration policy. His comments raised expectations for a September rate cut, with markets now pricing in an 83% chance of a move, up from 75% earlier in the week.
The late-week rebound helped markets recover from earlier losses. For the week, the Dow gained 1.5%, the S&P 500 added 0.3%, while the Nasdaq slipped 0.6%.
Stock market closing data for the week of Aug 18th to Aug 22nd, 2025
News Summaries
OpenAI Plants Roots in India: Why a Delhi Office Matters
OpenAI is preparing to set up a corporate office in New Delhi, giving the maker of ChatGPT its first formal base in India. The company has started hiring senior sales roles, adding to its only current employee in the country, Pragya Misra, who leads public policy and partnerships.
The rationale seems that the local team will allow OpenAI to work more closely with the government, developers and enterprises. It has already pledged support to the $1.2 billion IndiaAI Mission, which aims to build homegrown language models. With India’s vast population and strong technology talent, OpenAI is moving early to secure a role in both innovation and regulation.
The larger story is how India fits into the global AI race. For OpenAI, the country is not just a user base but a test bed for pricing models, regulation frameworks and developer adoption. A sub-$5 plan shows how the company is adapting to scale, while its first developer day later this year signals a long-term bet on India’s ecosystem. If successful, New Delhi could become one of the key bridges between OpenAI’s global ambitions and local innovation.
Zoom Jumps After Strong Forecast and Rising AI Adoption
Zoom shares surged nearly 10 percent after the company issued a stronger-than-expected forecast, signaling that its push beyond video calls is starting to pay off.
For the fiscal year ending January, revenue is projected at about $4.83 billion and adjusted profit at up to $5.84 per share, both ahead of Wall Street estimates.
The results show that while individual users and small businesses moved away from the platform after the pandemic, large enterprises have stuck with Zoom. Enterprise sales rose 7 percent in the latest quarter to $730.7 million, and the company now counts over 4,200 customers each spending more than $100,000 annually. Its new AI companion, which helps automate tasks, has grown to millions of monthly users, four times higher than last year.
The outlook reflects a company finding stability after a difficult post-pandemic adjustment. Revenue growth is modest, but the ability to hold large clients, add AI-driven features and deliver better-than-expected earnings suggests Zoom is carving out a durable role in the crowded workplace software market.
Walmart’s Rare Profit Miss Despite Strong Sales
Walmart shares dropped more than 4 percent after the retailer reported its first profit miss in three years. Higher insurance claims, legal charges and restructuring costs pulled down profitability, overshadowing stronger sales.
Still, the underlying business remains firm. Comparable-store sales came in ahead of estimates, net sales guidance for the year was raised to as much as 4.75 percent growth, and the company also lifted its annual profit outlook slightly. E-commerce sales rose 25 percent, with faster deliveries gaining traction among shoppers across income levels. Management highlighted that Walmart continues to capture market share, especially among higher-income households.
The market reaction reflects just a near-term disappointment. With its grocery strength, value positioning and delivery push, Walmart continues to consolidate its leadership. Even after the drop, shares have gained close to 30 percent over the past year, showing that long-term confidence in the company’s scale and strategy remains intact.
From the World of Crypto
State Street Joins JPMorgan to Test Blockchain-Based Debt
State Street, one of the world’s largest asset managers, has bought debt that was issued on JPMorgan’s blockchain platform.
This shows how big traditional banks are beginning to test financial products that live on digital rails rather than the old paper-and-ledger system.
The idea behind “tokenization” is simple: move bonds, funds or loans onto a blockchain so that trading, settlement and recordkeeping happen faster, cheaper and with fewer manual steps. For example, payments such as interest or redemption can be automated with smart contracts. Analysts believe this market could be huge in the coming decade, with estimates ranging from $2 trillion to nearly $19 trillion.
In this deal, State Street manages client holdings in a digital wallet linked directly to JPMorgan’s system. That makes it possible to settle transactions on the same day and avoid back-and-forth paperwork. For banks, it is a way to modernize operations while keeping their existing services intact, a sign that tokenization is slowly moving from theory to practice.
Key headlines of the week
Trump Secures 10% US Stake in Intel | President Donald Trump said Intel agreed to give the US government a 10% equity stake, converting Chips Act grants into ownership. He framed the move as a way to revive the struggling chipmaker, which has lagged rivals. Intel shares rose as much as 6.6% on the news, with Trump calling it “a great deal” for both sides.
Apple Weighs Using Google Gemini for Siri Revamp | Apple is in early talks with Google to use Gemini AI models to power a new version of Siri next year. The discussions follow delays in Apple’s own AI push and earlier talks with Anthropic and OpenAI. Bloomberg’s report sent Alphabet shares up 2.9% and Apple up 1.4%, as investors bet Apple may turn to external help to close its AI gap.
China Tech Stocks Lead Market Rally | Chinese equities climbed, with the CSI 300 Index gaining 2.1% Friday and up over 4% for the week. A mainland gauge of tech shares surged more than 8%, driven by chipmakers like Cambricon and Hygon. Analysts said reliance on domestic semiconductors could keep flows into China tech strong if policy support and geopolitical risks stay contained.
