CNBC Business News Update - Market Open: Stocks Higher, Fed Chair Hints At Rate Cut In Speech, Deere Cuts More Jobs 8/22/25

Episode Date: August 22, 2025

I'm Jessica Eddinger, CNBC. Wall Street is popping on the text released from Fed Chair J. Powell's speech today at the Jackson Hole Economic Summit. Investors won an interest rate cut next month. The Dow up 681 points, 1.5% Boeing shares leading it higher. They're up almost 3% this morning. The S&P 500 index, up 86 points, more than 1%. The NASDAQ soaring up 341. points one and a half percent. NVIDIA shares now up one and a half percent this morning. CNBC senior economics reporter Steve Leesman's in Jackson Hall. He does have the text that was released ahead of the speech. Fed Chair Jay Powell will say that the shifting balance of risk, quote, may warrant adjusting our policy stance. The stability of the unemployment rate right now allows the Fed to proceed carefully.

It's a lot of this but that in this speech. The inflation risks are to the upside, but employment risks are to the downside. On tariffs, he says, higher tariffs have begun to push up prices in some categories. The effects on tariff consumer prices are, quote, now clearly visible. Let's talk about what he says about the job markets. The slowdown in job growth, he says, is much larger than previously believed, noting the big revisions downward recently. But the job growth stolen has not created large slack in the labor market for the Fed to worry about immediately. You can see Fed Chair J. Powell speak on CNBC television, CNBC.com and on the CNBC app.

You are seeing higher prices for Toyota, Honda, and Nissan vehicles on dealer lots. But the automakers are pushing back on an EK Asia news report saying those price increases for Japanese-made vehicles in the U.S. are the result of Trump tariffs. American consumers are facing a 15% tariff on those vehicles. Toyota tells CNBC the price increases or because of increases in general. operational costs. Meantime, the new Jeep Cherokee has been unveiled. Parent company Stalantis has redesigned the vehicle it discontinued two years ago. Jeep sales have been slumping for years. So it has high hopes for this one. CNBC's Phil LeBoe spoke with the CEO of Jeep. Bob Broda Durf, the CEO of Jeep. This goes on sale later this year. When you look at this, how important is it that you have

a mid-size SUV back on sale again? Yeah, there's no question. This is the biggest in the United States, and this is obviously one of the largest misses from our sales decline that is now going to help reinvigorate a positive direction for us going forward. When you look at this vehicle being built in Mexico, there's tariffs right now, and nobody's quite sure when there's going to be a new USMCA deal or when we'll finally get a deal with Mexico. How much does that impact your costs? Costs are certainly going to be impacted by tariffs. We talked about just being compliant.

The entire power train is built in Dundee, Michigan. So we've worked through different parts and components. We've got a value equation where we still can price very aggressively for the customer. The entry level model is about $37,000. Jeep Cherokees will be on dealer lots toward the end of this year and beginning of next year. NVIDIA CEO Jensen Wong saying the U.S. and China are in talks to sell more advanced chips to China. Critics are saying China shouldn't get any of those higher-end chips. Human Resources Software Company Workday shares were lower.

after the company warned of challenges with government and education revenue. Cracker barrel old country store dealing with pushback against its new logo, which is sleaker and more modern. Conservatives are saying it's woke. After the president's son, Donald Trump Jr. amplified a post suggesting the logo now leans into DEI. Democrats then posted they don't like the logo either. Jessica Eddinger, CNBC. CNBC is the network for ambitious people.