CNBC Business News Update - Market Close: Stocks Post Modest Losses, Sec. Duffy Warns Airlines On AI Pricing, Coinbase Shares Lose Steam

Episode Date: August 5, 2025

The latest in business, financial, and markets news and how it impacts your money, reported by CNBC's Peter Schacknow

I'm Peter Shacknow's CNBC. Stocks ended the day with modest losses as the market failed to follow up on Monday's strong rally. The Dow lost 62 points to close at 44,112. The S&P 500 fell half a percent or 31 points, and the NASDAQ shed 137 points or two-thirds of 1%. Market sentiment took a hit shortly after the Open, after the Institute for Supply Management issued a weaker-than-expected reading of the U.S. services economy. Amy Wu Silverman, head of derivative strategy at RBC Capital, says investors are not only fighting fundamentals, but also negative seasonal trends that tend to kick in at this time of year.

There are these volatility potholes you got to watch out for, folks go on vacation, a little bit of liquidity vacuum. And I think, you know, it's a simple thing to state, but it really has, there's a reason it's called seasonality. And so I think there's a little bit of cautiousness seeping into our markets that, we see partly because of seasonality, partly because of everything else that's going on, but you are seeing indications of it. Transportation Secretary Sean Duffy says he will launch an investigation if any airline tries to use artificial intelligence to set individual airline ticket prices. Delta Airlines had said it would use AI management technology for pricing in general,

but has now said it wouldn't use it for pricing individual tickets. Among stocks on the move today, Coinbase slid 6.3% after the crypto exchange operator announced a $2 billion private offering of convertible notes. Coinbase is down more than 25% from its July record close, but it is still up nearly 60% over the past year. Peter Shack now, CNBC. The CNBC Sport universe is growing. We're covering the intersection of sports and business,

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