2025-08-20 21:14

NEW YORK, Aug 20 (Reuters) - Developers are on track to add 33 gigawatts of solar power in the U.S. this year, accounting for about half of the total new electricity generating capacity planned for the country in 2025, the Energy Information Administration said on Wednesday. If the plans are realized, large-scale solar power additions in the U.S. would reach a record high, said the EIA, which based its analysis on a survey of developers. New battery storage, which stores electricity from solar farms and other energy sources, may also hit a yearly record in 2025. Sign up here. Wind and natural gas power plants accounted for the rest of the capacity additions, the EIA said. WHY IT'S IMPORTANT Solar energy does not produce global warming emissions. That makes it central to plans by U.S. states to decarbonize, while also meeting record-high electricity demand brought on by Big Tech and other expanding industries. Many of the federal government financial incentives that propelled the development of solar power over the last several years, however, will disappear under the administration of President Donald Trump, adding uncertainty to future development of the technology. TEXAS SOLAR STANDOUT Texas, which last year surpassed California as the state with the most large-scale solar capacity, accounted for more than a quarter of the solar power developed so far in 2025. For the rest of the year, the Lone Star State plans for another 9.7 gigawatts of new solar capacity, or nearly half of all of U.S. solar planned for development over the time period. Texas' sunny weather, availability of large amounts of land and quickly-increasing power demand have drawn solar energy development. https://www.reuters.com/sustainability/climate-energy/solar-may-account-half-new-us-electricity-added-this-year-eia-says-2025-08-20/

2025-08-20 21:05

ORLANDO, Florida, Aug 20 (Reuters) - TRADING DAY Making sense of the forces driving global markets Sign up here. By Jamie McGeever, Markets Columnist Gnawing doubts about the frenzy around artificial intelligence weighed on tech shares again on Wednesday, pushing Wall Street into the red as investors cast a nervous eye toward a key speech from Fed Chair Jerome Powell on Friday. More on that below. In my column today, I look ahead to Powell's eighth and final Jackson Hole speech. If market moves following his previous seven are any guide, investors should be in for a bumpy ride. If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today. Today's Key Market Moves Today's Talking Points: * Trump interference. Investors are increasingly concerned about the involvement - or interference - from President Donald Trump and his administration in many aspects of the economy, private sector business, and independent policymaking. Trump on Wednesday called for Fed Governor Lisa Cook to resign over mortgage allegations, which could pave the way for another Trump appointee at the Fed inclined to lower interest rates. Commerce Secretary Howard Lutnick, meanwhile, is said to be looking into the government taking equity stakes in Intel and other chipmakers in exchange for grants under the CHIPS Act. This comes on the heels of Trump's recent sideswipe at Goldman Sachs's CEO and chief U.S. economist, criticism of JPMorgan Chase and Bank of America, his firing of a senior statistics official, and months of verbal attacks on Powell for not cutting rates. * Tech fatigue. After leading Wall Street's charge this year to new peaks, U.S. tech shares are now losing steam and dragging broader indexes lower. Whether that's simply rotation and diversification, unease over the megacap concentration, or doubts about the huge AI spend, air is coming out of the tech balloon. The S&P 500 tech sector is down nearly 5% in the last five trading days. But a bit of perspective is required - the sector rallied 60% between April 7 and August 13. * Fed minutes. With just two days to go until Powell's last Jackson Hole speech, investors on Wednesday had the minutes of the Fed's July 29-30 policy meeting to pore over. The minutes appear to show that the two policymakers who dissented against the central bank decision to leave rates unchanged appear not to have been joined by others in voicing support for lowering rates at that meeting. "Almost all participants viewed it as appropriate to maintain the target range for the federal funds rate at 4.25% to 4.50% at this meeting," the minutes read. Maybe the bar to cutting rates is higher than thought? But bear in mind, the weak July payrolls data were released two days after that decision. Jackson Hole speech could pack a punch Financial markets are taking in a collective breath ahead of Powell's eighth and final keynote Jackson Hole speech as Federal Reserve chair. If the moves following his last seven are any guide, investors should buckle up for a bumpy ride. Fed-watchers will be focused squarely on whether Powell signals that he's willing to cut interest rates at the central bank's September 16-17 meeting. His public comments in recent months have been relatively hawkish, but those were all before the release of the weak July employment figures that fired up easing expectations. Rates futures traders are pricing in an 85% probability of a quarter-point cut next month, with another 25 basis points of easing expected by year's end. Powell's words on Friday could provide significant clarity about whether these positions are "in the money" or not. Given that traders are betting so heavily on an imminent move, the "pain trade" will be if Powell holds the line that policymakers need to see more incoming data before resuming the easing cycle put on hold in December. Investors have reason to be cautious. History shows Powell's Jackson Hole speeches tend to move markets a lot, especially the bond market. And even though Powell is often considered a policy dove at heart, his Jackson Hole set-piece speeches have usually pushed yields higher, not lower. WATCH BOND YIELDS In the month following each of Powell's last seven Jackson Hole speeches, the 10-year Treasury yield has risen by an average of 21 bps, according to Reuters calculations. The dollar has risen 1.4% and the S&P 500 has fallen nearly 2%, on average, over the same period. Stretching that out, the S&P 500 has risen an average of 2.3% between the late-August speech and year-end, the dollar has gained 0.4%, while the 10-year yield has climbed 27 basis points on average. But these averages mask some much bigger moves, especially in the month after the central bank jamboree in Wyoming. The stand-out example is 2022, when Powell, in his Monetary Policy and Price Stability , opens new tab speech, invoked former Fed Chair Paul Volcker, warning of the "pain" that households and businesses were likely to face from the tight policy needed to slay inflation. In the following month, the S&P 500 tanked 12%, the dollar rallied 5%, and the 10-year Treasury yield soared 75 bps. Bond yields climbed at least 20 bps in the month following three other Powell Jackson Hole speeches, in 2018 , opens new tab, 2021 , opens new tab, and 2023 , opens new tab, the latter being another where Powell signaled a readiness to keep rates higher for longer. KEY CONSIDERATIONS Inflation today is not as lofty as it was two years ago, but, sitting around 1 percentage point above the Fed's 2% goal, it is higher than Powell would like. Meanwhile, on the other side of the Fed's dual mandate, unemployment remains at a historical low of 4.2%. This year's theme at Jackson Hole is "Labor Markets in Transition: Demographics, Productivity, and Macroeconomic Policy." Powell has stated that the unemployment rate is the best measure of the labor market. But that does not mean today's low unemployment rate will automatically lead to a hawkish speech - history shows that when unemployment starts to rise, it can move quickly, leaving the Fed woefully behind the curve. Markets are probably prepared for some large price swings, whichever way Powell leans. THE LAST TIME It's also likely that Powell will use the platform to defend his tenure, just like his predecessors: Alan Greenspan , opens new tab in 2005, Ben Bernanke , opens new tab in 2012, and Janet Yellen , opens new tab in 2017. Given the unprecedented public pressure Trump has placed on Powell to cut interest rates this year, why would the Fed chair not seize this opportunity to have his say? "He may offer some soft guidance that rates may move lower at a coming meeting. But this is his last speech at Jackson Hole. He may never again have a platform this influential to offer his view of how his history should be written," economists at UBS wrote on Friday. Will he sign off with a bang? Markets are locked and loaded. What could move markets tomorrow? Want to receive Trading Day in your inbox every weekday morning? Sign up for my newsletter here. Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles , opens new tab, is committed to integrity, independence, and freedom from bias. https://www.reuters.com/business/global-markets-trading-day-graphic-2025-08-20/

2025-08-20 20:56

Investors rotate out of tech and into other sectors Target down after reaffirming annual forecast Estee Lauder down as annual profit forecast below estimates Aug 20 (Reuters) - The Nasdaq and S&P 500 fell on Wednesday as investors sold tech stocks and moved into less highly valued sectors, as they also awaited remarks from Federal Reserve officials at their Jackson Hole symposium this week. Tech stocks, which drove much of the recovery from Wall Street's April selloff, have been pulling back. The S&P 500 technology index (.SPLRCT) , opens new tab was down on the day, while sectors such as energy, healthcare and consumer staples rose. Sign up here. "A broader lens tells you it's more of a rotation than a true sell off," said Allspring's senior portfolio manager, Bryant van Cronkhite. "Tech valuations look extended in the context of inflated spending today. Number two, I would say that there are a lot of pockets of the market that look very attractive from a valuation standpoint and they've been broadly ignored." According to preliminary data, the S&P 500 (.SPX) , opens new tab lost 16.40 points, or 0.26%, to end at 6,394.97 points, while the Nasdaq Composite (.IXIC) , opens new tab lost 144.76 points, or 0.68%, to 21,170.19. The Dow Jones Industrial Average (.DJI) , opens new tab rose 1.48 points, or 0.00%, to 44,923.75. Analysts listing other factors behind the tech sell-off mentioned OpenAI CEO Sam Altman's comments last week about artificial intelligence stocks being "in a bubble," and a Massachusetts Institute of Technology study that showed many tech companies were struggling to translate AI into actual profits. Some investors also worried about government interference in the private sector. President Donald Trump's administration is looking into taking equity stakes in chip firms such as Intel (INTC.O) , opens new tab, weeks after unprecedented revenue-sharing deals with Nvidia and AMD. Nvidia (NVDA.O) , opens new tab, Advanced Micro Devices (AMD.O) , opens new tab, Intel (INTC.O) , opens new tab and Micron (MU.O) , opens new tab fell. Nvidia's quarterly results on August 27 are keenly awaited for clues on demand for artificial intelligence. Other megacap growth names such as Apple and Meta (META.O) , opens new tab also came under pressure. Minutes from the Fed's July meeting, where interest rates were left unchanged, showed almost all policymakers viewed it as appropriate to maintain the target range for the federal funds rate at 4.25% to 4.50%, despite two dissenters. Fed Chair Jerome Powell is expected to speak on Friday at the central bank's annual conference in Jackson Hole, Wyoming. His remarks will be closely watched for policy signals. Investors have been pricing in a 25-basis-point rate cut in September, according to data compiled by LSEG. Meanwhile, investors also monitored Trump's call for the resignation of Fed Governor Lisa Cook, with the president citing allegations that she was involved in mortgage fraud. Earnings from big retailers, seen as a barometer for the health of the American consumer, are also due this week as sentiment has taken a hit from concerns that tariffs could drive prices higher. Target (TGT.N) , opens new tab tumbled after the company named a new CEO and retained its annual forecasts that were lowered in May. Cosmetics giant Estee Lauder (EL.N) , opens new tab fell after tariff-related headwinds weighed on its annual profit forecast. (This story has been corrected to state that Fed Chair Jerome Powell is expected to speak on Friday at the central bank's annual conference, instead of saying the conference "kicks off Friday" with a speech, in paragraph 10) https://www.reuters.com/business/nasdaq-sp-500-end-lower-investors-sell-tech-buy-less-pricey-sectors-2025-08-20/

2025-08-20 20:22

TSX ends up 0.2% at 27,878.76 Energy adds 0.7% as ol settles 1.4% higher Materials group gains 2%; gold climbs Consumer discretionary ends 1.9% lower Aug 20 (Reuters) - Canada's major stock index rose on Wednesday as resource shares notched gains and investors awaited the start of bank earnings season. The S&P/TSX composite index (.GSPTSE) , opens new tab ended up 54.88 points, or 0.2%, at 27,878.76, but remained below last Wednesday's record closing high. Sign up here. "I think right now we're in the late-summer doldrums, said Colin Cieszynski, chief market strategist at SIA Wealth Management. "A lot of news is out, earnings season is now pretty much over and in Canada we're waiting to see what the banks have to say." Canada's major banks are set to begin reporting quarterly earnings on Tuesday. Financials account for 33% of the TSX's market capitalization, making it the largest weighting by far. The Toronto market is set to extend its record-setting run this year and next as lower borrowing costs, along with potentially greater clarity on U.S. tariffs, offset expected pressure on corporate profits, according to a Reuters poll that was published on Tuesday. The energy sector (.SPTTEN) , opens new tab rose 0.7% on Wednesday, as the price of oil settled 1.4% higher at $63.21 a barrel on a bigger-than-expected drop in U.S. crude inventories. Gold and copper prices also climbed. The materials group (.GSPTTMT) , opens new tab, which includes metal mining shares, was up 2%. Among the declining sectors was technology (.SPTTTK) , opens new tab, which dipped 0.4%. "Tech is down. That's to be expected with the Nasdaq selling off and U.S. tech stocks selling off," Cieszynski said. Declines for high-flying U.S. tech stocks and caution ahead of the Federal Reserve's highly anticipated Jackson Hole symposium weighed on Wall Street, with the S&P 500 declining for a fourth straight day. Consumer discretionary (.GSPTTCD) , opens new tab was also a drag, falling 1.9%, with shares of Restaurant Brands International Inc (QSR.TO) , opens new tab ending 4.2% lower. https://www.reuters.com/markets/europe/toronto-stock-market-ends-higher-oil-gold-prices-climb-2025-08-20/

2025-08-20 20:21

Tech-heavy US stock index ends down 0.7% Concerns over valuation, risk-off mood hurt tech stocks Trump's growing influence over tech sector raises concerns MUMBAI/SAN FRANCISCO, Aug 20 (Reuters) - Wall Street shares dropped on Wednesday, with a tech selloff extending into a second day, while a key meeting of central bankers later this week remained in focus for currency and rates traders. The S&P 500 (.SPX) , opens new tab ended down 0.2% and the tech-heavy Nasdaq Composite (.IXIC) , opens new tab slid 0.7%, adding to a steep decline on Tuesday. Both indexes partly recovered from deeper, earlier losses. Sign up here. The Dow Jones Industrial Average (.DJI) , opens new tab edged up 0.04%. Analysts blamed a confluence of factors for the weakness in tech stocks, including concerns over steep valuations, investors exiting profitable positions, and risk aversion. "To me, tech was overbought," said Seth Hickle, managing partner at Mindset Wealth Management. "We had really good earnings, and now it's kind of natural for the market just to sell some of that good news." Wariness over U.S. President Donald Trump's growing influence over tech companies has also been in focus for investors. U.S. Commerce Secretary Howard Lutnick is looking into the government taking equity stakes in Intel (INTC.O) , opens new tab and other chip companies, two sources told Reuters. That follows other unusual revenue-sharing deals Washington recently struck with artificial intelligence chip company Nvidia (NVDA.O) , opens new tab and Advanced Micro Devices (AMD.O) , opens new tab. Apple (AAPL.O) , opens new tab, Alphabet (GOOGL.O) , opens new tab and Amazon (AMZN.O) , opens new tab each dipped more than 1%. European shares rose, with the pan-European STOXX 600 index (.STOXX) , opens new tab up 0.25%. Britain's FTSE 100 (.FTSE) , opens new tab rallied 1.17% to a record high, boosted by gains in consumer and healthcare companies. FOCUS ON JACKSON HOLE The U.S. dollar weakened slightly against a basket of peers after Trump called on Federal Reserve Governor Lisa Cook to resign. The 10-year U.S. Treasury yield was little changed at 3.29%, while the 2-year Treasury yield slipped to 3.74%. The focus is now on the Federal Reserve's August 21-23 Jackson Hole symposium, where Fed Chair Jerome Powell is due to speak on Friday on the economic outlook and the U.S. central bank's policy framework. Powell's remarks on the near-term outlook for interest rates will be keenly watched as traders are almost fully pricing in a rate cut next month. "Even if Federal Reserve Chair Jerome Powell emphasises muted unemployment over sharply revised payrolls, that would be a hard sell to both the White House and a market that is pricing in 21 bp of rate cuts for September," analysts at ING said in a note. Minutes from the Fed's July meeting, where interest rates were left unchanged, showed viewed it as appropriate to maintain the target range for the federal funds rate at 4.25% to 4.50%, despite two dissenters. Elsewhere, Sweden's central bank kept its key interest rate on hold as expected, while the Reserve Bank of New Zealand cut policy rates to a three-year low and signaled further easing, sending the kiwi down by more than 1%. Consumer prices in Britain climbed 3.8% in July, data showed, the fastest annual rise for a Group of Seven economy. The data nudged sterling higher, but it quickly pared gains, while the fact that inflation was not even higher prompted a rally in government bonds. The benchmark 10-year gilt yield was last down 7 basis points at 4.68% . Oil prices climbed about 1% on a bigger-than-expected weekly drop in U.S. crude inventories as investors awaited the next steps in talks to end the Ukraine war, with sanctions on Russian crude remaining in place for now. Spot gold rose 1% to $3,348.70 an ounce. https://www.reuters.com/world/china/global-markets-wrapup-7-2025-08-20/

2025-08-20 19:51

NEW YORK, Aug 20 (Reuters) - BP's (BP.L) , opens new tab 440,000-bpd refinery in Whiting, Indiana, was in the process of restarting after flooding disrupted its operations earlier this week, industry monitor IIR said on Wednesday, adding the units would take several days to ramp up. The facility aims to be back running at full rates by early next week, IIR said. Sign up here. The refinery reported flaring due to flooding caused by a severe thunderstorm. Materials will continue to be burned in the flares as needed to maintain safe operations, BP said in a social media post on Wednesday, adding that response and operations teams have been on site since Monday evening. BP declined to comment on the refinery's restart timeline. The Whiting refinery, the largest in the U.S. Midwest, produces a wide range of liquid fuels, including gasoline, diesel and jet fuel. Gasoline and diesel will be impacted at the retail level, Patrick De Haan, head of petroleum analysis at GasBuddy, said in an email on Wednesday. The Great Lakes market will likely see prices rise by 10 to 20 cents a gallon over the next few days, while consumers in the Chicago area could see an even bigger jump of 15 to 30 cents a gallon. https://www.reuters.com/business/energy/indianas-bp-refinery-restarts-after-severe-flooding-2025-08-20/