A dealer watches computer monitors near screens showing the Korea Composite Stock Price Index (KOSPI) at a dealing room of Hana Bank in Seoul, South Korea, Monday, Aug. 25, 2025. (AP Photo/Lee Jin-man)
A dealer watches computer monitors near the screens showing the Korea Composite Stock Price Index (KOSPI), left, the foreign exchange rate between U.S. dollar and South Korean won and the Korean Securities Dealers Automated Quotations (KOSDAQ) at a dealing room of Hana Bank in Seoul, South Korea, Monday, Aug. 25, 2025. (AP Photo/Lee Jin-man)
A dealer walks past screens showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at a dealing room of Hana Bank in Seoul, South Korea, Monday, Aug. 25, 2025. (AP Photo/Lee Jin-man)
A dealer walks past near screens showing the foreign exchange rates at a dealing room of Hana Bank in Seoul, South Korea, Monday, Aug. 25, 2025. (AP Photo/Lee Jin-man)
A dealer watches computer monitors near screens showing the Korea Composite Stock Price Index (KOSPI) at a dealing room of Hana Bank in Seoul, South Korea, Monday, Aug. 25, 2025. (AP Photo/Lee Jin-man)
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A dealer watches computer monitors near the screens showing the Korea Composite Stock Price Index (KOSPI), left, the foreign exchange rate between U.S. dollar and South Korean won and the Korean Securities Dealers Automated Quotations (KOSDAQ) at a dealing room of Hana Bank in Seoul, South Korea, Monday, Aug. 25, 2025. (AP Photo/Lee Jin-man)
JM
A dealer walks past screens showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at a dealing room of Hana Bank in Seoul, South Korea, Monday, Aug. 25, 2025. (AP Photo/Lee Jin-man)
JM
A dealer walks past near screens showing the foreign exchange rates at a dealing room of Hana Bank in Seoul, South Korea, Monday, Aug. 25, 2025. (AP Photo/Lee Jin-man)
JM
Options trader Tommy Nguyen works on the floor of the New York Stock Exchange, Monday, Aug. 18, 2025. (AP Photo/Richard Drew)
NEW YORK (AP) — Stocks are opening lower on Wall Street after a big jump last week on hopes for more interest rate cuts from the Federal Reserve. The S&P 500 slipped 0.2% in the first few minutes of trading Monday. The Dow Jones Industrial Average fell 72 points, or 0.2%, and the Nasdaq composite was down 0.3%. Keurig Dr Pepper sank 7.7% after saying it will buy Peet’s Coffee owner JDE Peet’s in a deal worth about $18 billion. Treasury yields rose in the bond market. European markets were mixed and Asian markets closed lower overnight.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
BANGKOK (AP) — World shares were mixed on Monday after the head of the Federal Reserve hinted that cuts to interest rates .
European markets opened lower, with Germany's DAX down 0.2% at 24,305.67, while the CAC 40 in Paris lost 0.6% to 7,918.34. Britain's markets were closed for a holiday.
The futures for the S&P 500 and the Dow Jones Industrial Average were down 0.2%.
On Friday, stocks on Wall Street rallied after Fed chair Jerome Powell said in a speech to an annual conference in Jackson Hole, Wyoming, that he's seen risks for the job market. That followed a on job growth this month that has led many traders to expect a rate cut as soon as the Fed's next meeting in September, after months of pressure from President Donald Trump for lower rates.
Lower interest rates make borrowing easier, helping to spur more investment and spending, but also potentially fueling inflation.
In Asian trading, shares advanced.
Hong Kong's Hang Seng index closed 1.9% higher at 25,829.91, while the Shanghai Composite index surged 1.5% to 3,883.56. It has been trading at its highest level in a decade, despite worries over on exports to the United States under Trump and weak domestic demand at home.
Tokyo's Nikkei 225 gained 0.4% to 42,807.82, with computer chip-related companies leading gains.
The Kospi in South Korea climbed 1.3% to 3,209.86.
Australia's S&P/ASX 200 edged less than 0.1% higher, to 8,972.40.
The SET in Bangkok gained 0.7%, while the Sensex in India rose 0.5%.
This week, Nvidia's earnings report, due Wednesday after markets on Wall Street close, is a key focus of attention.
Nvidia's role as a key supplier of chips for artificial intelligence and its heavy weighting give it outsized influence as a bellwether for the broader market.
On Friday, the S&P 500 leaped 1.5% for its first gain in , while the Dow industrials soared 1.9%. The Nasdaq composite also jumped 1.9%.
Investors love lower interest rates, and stocks of smaller companies led gains. They can benefit more from lower interest rates because of their need to borrow money to grow. The smaller stocks in the Russell 2000 index surged 3.9% for its best day since April.
Still, Powell did not commit to any kind of timing. He said the job market looks OK, even if “it is a curious kind of balance†where fewer new workers are chasing after fewer new jobs. Inflation, meanwhile, still has the potential to push higher.
The yield on the 10-year Treasury fell to 4.25% from 4.33% late Thursday. The two-year Treasury yield, which more closely tracks expectations for Fed action, sank to 3.69% from 3.79% in a notable move for the bond market.
Intel climbed 5.5% after to give the U.S. government a 10% stake in its business.
rose 1.7% to trim its loss for the week. The company, whose chips are powering much of the world’s move in to , had seen its stock struggle recently amid criticism that it and other AI superstars shot too high, too fast and became too expensive.
In other dealings early Monday, U.S. benchmark crude oil gained 50 cents to $64.16 per barrel. Brent crude, the international standard, added 45 cents to $67.67 per barrel.
The U.S. dollar rose to 147.34 Japanese yen from 146.88 yen. The euro fell to $1.1696 from $1.1727.
