US stock market drops 2% in three days; S&P 500, Dow, Nasdaq slide as Intel and IBM surge, Bitcoin crashes ahead of inflation report

U.S. stock market fell for the third day in a row on September 25, 2025. The Dow Jones dropped 0.4%, the S&P 500 fell 0.5%, and the Nasdaq declined about 0.5%. The market lost momentum after hitting record highs earlier in the week.

Investors are waiting for Friday’s inflation report. Earlier this week, all three indexes had reached record highs.

Economic data showed the U.S. economy is strong. Second-quarter GDP was revised up to 3.8% growth. Weekly jobless claims fell to 218,000. Durable goods orders bounced back. Existing home sales in August were nearly flat. The 10-year Treasury yield rose slightly to 4.18%.
Despite these positive signs, stocks slipped as traders worried about fewer interest rate cuts from the Federal Reserve. The better economy made investors unsure if the Fed would lower rates in October.

Big tech stocks struggled. Tesla shares dropped more than 4%, and Oracle fell 5.6% after recent declines. On the brighter side, Intel surged nearly 9% after news that Apple might invest in the chipmaker. IBM rose 5% after a successful quantum computing trial with HSBC boosted investor confidence.

Some companies, like CarMax, had a tough day. Their shares plunged 20% following weak earnings and disappointing sales.In other markets, crude oil prices edged up slightly, gold futures gained, and the U.S. dollar index rose.The Personal Consumption Expenditures (PCE) index for August will be released Friday. Economists expect inflation to rise 2.7% year-over-year. Core PCE is expected at 2.9%. Strong inflation could delay Federal Reserve rate cuts. Recent economic data shows the U.S. economy is resilient despite tariffs.

The total loss in the US stock market over the three-day period ending September 25, 2025, can be estimated from major indexes as follows:

• The Wilshire 5000 Total Market Index, a broad measure of the US stock market, showed a single-day decline of about 0.61% on September 25, 2025, with a decrease of roughly 404 points from 66,406 to 66,002.
• The Dow Jones U.S. Total Stock Market Index declined by approximately 0.55% on the latest day, down about 359 points to 65,346.

The S&P 500 and Nasdaq each fell about 0.5% on September 25 after two previous days of losses. Assuming each of the three days saw roughly similar declines near 0.5%, and calculating compounding loss,

The approximate total loss in the broad US stock market over three days was about 1.5% to 1.6%.

Overall, the market showed caution as investors awaited key inflation data to be released soon. This data will influence the Federal Reserve’s next moves on interest rates, which is a major concern for the market today.

The technology sector continued to underperform, contributing significantly to the overall market decline. Companies like Oracle and other tech giants reported earnings that fell short of investor expectations or issued cautious forward guidance. Because technology stocks hold heavy weight in major indexes, their struggles have amplified losses across the board.

In short, strong economic growth and a tight job market are good news, but the market worries about how these will affect future rate cuts. This balance caused the recent three-day stock decline.

Major Indexes Today

The losses were broad but tech-heavy stocks bore the brunt. Here’s the latest performance:

• S&P 500: Fell 0.5%, closing at 6,604.72.
• Dow Jones Industrial Average: Dropped 0.4%, ending at 45,947.32.
• Nasdaq Composite: Decreased 0.5%, closing at 22,384.70.

The S&P 500 is approaching its lower support range. Many traders are cautious, watching closely for signs that the market may stabilize. Meanwhile, the Nasdaq’s decline underscores continued pressure on tech stocks, which have struggled to meet earnings expectations.

Key Stocks today:

• CarMax (KMX) fell 20% after missing sales and profit estimates. CEO Bill Nash said demand had been pulled forward and inventory depreciation affected results.
• Oracle (ORCL) dropped 5.6% for the third straight day, following weaker-than-expected cloud revenue.
• Tesla (TSLA) fell over 4%.
• Micron (MU) dropped 3% even after record quarterly sales.
• Amazon (AMZN) slipped almost 1% after agreeing to pay $2.5 billion to settle a FTC lawsuit over Prime subscriptions.

Winners:

• Intel (INTC) surged 9% after reports it may receive a stake from Apple.
• IBM (IBM) rose 5% after HSBC said its quantum computing trial improved bond trading predictions by 34%.
• Lithium Americas (LAC) jumped 23% on reports of a possible government stake.
• Albemarle (ALB) gained 4%.

Other Market Moves:

• Bitcoin fell 3.5% to below $110,000.
• MARA down 9%, MSTR down 7%.
• Costco (COST) down 0.2%.
• Starbucks (SBUX) down 0.5%, as it plans to lay off 900 corporate employees and close some stores.
• Oil rose slightly to $65.15 per barrel.
• Gold up 0.3% to $3,780.
• U.S. Dollar Index rose 0.7% to 98.52.

Top Business News:

• Dick’s Sporting Goods (DKS) gets a “buy” rating from Goldman Sachs after acquiring Foot Locker. Analysts expect the combined company to strengthen vendor relationships and improve sales.
• TikTok may come under U.S. ownership. Oracle will help oversee its recommendation algorithm. Rupert Murdoch, Michael Dell, and others are expected in the ownership group.
• Kodiak AI (KDK) fell 10% in its first day of trading. The company builds AI-powered self-driving trucks.
• Fed Independence: Former Fed chairs and officials urged the Supreme Court to block President Trump from firing Fed governor Lisa Cook. They said it would threaten the Fed’s independence.
• Opendoor (OPEN) rose 6% after Jane Street disclosed it owns 5.9% of the company.
• Starbucks (SBUX) will close stores where its strategy doesn’t work and cut 900 corporate jobs to focus on long-term growth.
• Chinese Stocks rose, boosted by AI interest and improving U.S.-China trade sentiment. The Shanghai Composite and CSI 300 are up 18% and 20% year-to-date.

Treasury Yield

Treasury yields climbed again on Thursday. Rising government bond yields matter because they act as the benchmark for everything from mortgage rates to corporate debt. When yields spike, borrowing everywhere becomes more expensive.

This move is pressuring stocks in two ways. First, higher yields reduce the appeal of equities compared to safer government bonds. Second, they raise the cost of doing business for companies across industries. Both factors add up to lower stock valuations and a more cautious mood.

For everyday investors, the message is clear: pay attention not just to the stock charts, but also to the bond market, because that is quietly reshaping where money flows.

How Did Economic Data Shift Expectations?

The worries weren’t only about yields. Fresh economic numbers suggested that the U.S. economy is running hotter than many thought.

• GDP growth came in stronger than analysts expected.
• Weekly jobless claims came in lower, showing a tight labor market.

The Personal Consumption Expenditures (PCE) index for August will be released Friday. Economists expect inflation to rise 2.7% year-over-year. Core PCE is expected at 2.9%. Strong inflation could delay Federal Reserve rate cuts. Recent economic data shows the U.S. economy is resilient despite tariffs.

Why Are Tech Stocks Under Pressure?

Technology names once again came under selling pressure. Oracle was a notable laggard, dragging down software and cloud peers. For the Nasdaq, already sensitive to interest rate moves, the effect was even sharper.

Tech companies depend heavily on growth expectations. When yields rise, those future earnings are worth less in today’s terms. That math is pushing investors away from big tech and into safer, yield-bearing assets.

This rotation isn’t new, but it shows how fragile sentiment is in one of the market’s most important sectors. If pressure continues in tech, broader indexes could struggle to regain momentum in the short term.

What Did ETFs Tell Us About Sentiment?

The exchange-traded funds tracking the major indexes painted the same cautionary picture.

• The SPDR S&P 500 ETF (SPY) ended at $658.05, down 0.50%.
• The SPDR Dow Jones Industrial Average ETF (DIA) dropped 0.36% to $459.43.
• The Invesco QQQ Trust (QQQ), mirroring the Nasdaq 100, slipped 0.44% to $593.53.

ETFs give retail investors an easy way to gauge market momentum. On Thursday, all three slipped in tandem, signaling broad-based weakness, not just isolated sector pain.

How Could the Market Move in the Coming Weeks?

Looking ahead, several factors will shape the market’s direction:

• Federal Reserve Decisions: Any hints of extended interest rate hikes or changes in policy could influence investor sentiment significantly.
• Corporate Earnings Reports: Upcoming earnings, especially from tech giants, will be closely watched. Strong results could stabilize the market, while weak guidance may prolong the downtrend.
• Economic Data Releases: Inflation reports, job data, and GDP updates will all play a role in shaping expectations for monetary policy and market performance.

Analysts suggest maintaining a cautious approach while staying alert to opportunities. A balanced strategy can help weather volatility while positioning for potential gains if the market stabilizes.