Evening Market Recap

Sophia Reyes · August 5, 2025 6:38 PM

Market Snapshot for Tuesday August 5^th, 2025

S&P 500 – 6,299.19 (-0.49%)

NASDAQ – 20,916.55 (-0.65%)

Dow Jones – 44,111.74 (-0.14%)

Market Performance

Stocks Slip as Weak Data and Tariff Talk Rattle Investors

U.S. stocks retreated Tuesday as investors weighed disappointing economic data and fresh tariff threats from President Donald Trump, raising new concerns about the health of the economy.

The S&P 500 fell 0.49% to close at 6,299.19, while the Nasdaq Composite dropped 0.65% to 20,916.55. The Dow Jones Industrial Average dipped 61.90 points, or 0.14%, ending the day at 44,111.74.

The declines came amid a volatile stretch for markets. On Friday, the Dow plunged more than 500 points after a soft jobs report suggested prolonged labor market weakness. The index rebounded sharply Monday, gaining nearly 600 points before giving back some ground Tuesday.

Economic Takeaways –

• ISM Services index flatlined in July, adding to stagflation concerns. Stagflation indicates a scenario of higher inflation and lower employment. Services makes up about 70% of the U.S. economy, so a slowdown in the sector could mean trouble ahead.
• President Trump told CNBC that tariffs on chips, as well as pharmaceuticals, were coming soon.
• A choppy few weeks may lie ahead, but more gains are on the horizon, says Ulrike Hoffmann-Burchardi, chief investment officer for the Americas and global head of equities at UBS Global Wealth Management.
• Investor Josh Brown believes artificial intelligence is the driving force behind any potential surge in the S&P 500 to 7,000. “If we’re going to get to 7,000, it’s going to be because of the AI build out,” Brown said Tuesday on CNBC’s Halftime Report. “That is the only pillar holding up the US economic growth story right now.”
• HSBC raised its year-end forecast for the S&P 500 on Tuesday, with the firm citing sentiment around artificial intelligence and policy shifts in Washington as catalysts to drive stocks higher. The firm now has a year-end target of 6,400 for the broad market index, which implies about 1.1% from where its closing level on Monday.
• Bank of America cut its rating on ON Semiconductor from buy to neutral, pointing to a sluggish sales rebound and ongoing softness in the U.S. and European automotive markets.
• JPMorgan downgraded International Paper on Tuesday following the paper manufacturer’s second-quarter earnings report.

Gold –

• Gold edged higher on Tuesday, building on three days of growth amid expectations the Federal Reserve will cut interest rates next month after a spate of weaker economic data.
• Spot gold traded near $3,379 an ounce in London, up 0.2%.
• “Fears of a slowdown in the US economy along with concerns about rising inflation amid Trump’s tariffs are driving increased demand for gold,” ING Groep NV strategist Ewa Manthey said. “With US fed rate cuts now intensifying, gold’s bullish momentum could grow, sending gold to fresh highs.”

Oil –

• Oil prices slipped on Tuesday as rising OPEC+ supply and worries of weaker global demand countered concern about U.S. President Donald Trump’s threats to India over its Russian oil purchases.
• Brent crude futures settled $1.12, or 1.63%, lower to $67.64 a barrel, while U.S. West Texas Intermediate crude slipped $1.13, or 1.7%, to $65.16. Both benchmarks settled to their lowest in five weeks.
• OPEC+, agreed on Sunday to raise oil productionby 547,000 barrels per day for September, a move that will end its most recent output cut earlier than planned.

Crypto –

• Coinbase launched embedded wallets to simplify crypto integration for developers. The stock slid on Tuesday as the company announced a $2 billion private offering of convertible senior notes. Last week, Citi hiked its price target to $505 from $270. The analyst said Coinbase stands to gain from legislative momentum as well as stronger bitcoin prices and improved custodial fee revenue.
• Bitcoin dropped to under $114,000.

U.S. Services Sector Barely Expands in July as Tariffs Weigh on Growth

The U.S. services sector barely stayed in expansion territory in July, with the ISM services index ticking in at 50.1—just above the contraction threshold and below economists’ expectations of 51.2. The reading marks the weakest level since May 2020, as mounting tariff pressures begin to strain the broader economy.

Within the report, price pressures intensified with the prices index climbing 2.4 points to 69.9. However, new export orders dropped 3.2 points to 47.9, and imports sank 5.8 points to 45.9. Employment conditions also deteriorated, as the index dipped 0.8 point to 46.4, signaling further contraction.

Survey respondents flagged the negative effects of tariffs. “Tariffs are causing additional costs as we continue to purchase equipment and supplies,” noted a healthcare and social assistance manager. A respondent from the real estate sector added, “Economic uncertainty remains the dominant theme.”

AMD Falls Despite Revenue Beat and Strong Guidance Amid AI Chip Setback

AMD (AMD) reported its second-quarter results after Tuesday’s closing bell, missing slightly on adjusted earnings per share but topping revenue expectations. The company posted adjusted EPS of $0.48 on revenue of $7.6 billion, compared to Wall Street forecasts of $0.49 EPS and $7.4 billion in revenue, according to Bloomberg consensus estimates.

Looking ahead, AMD offered upbeat Q3 guidance, projecting revenue between $8.4 billion and $9 billion — comfortably above analysts’ estimate of $8.3 billion. The results arrive just ahead of key earnings from rival Nvidia (NVDA), the dominant player in the AI chip space.

Despite the optimistic outlook, AMD shares fell more than 4% in after-hours trading. The stock has gained 44% year to date and 29% over the past 12 months. For comparison, Nvidia is up 32% YTD and 77% over the same period.

A significant headwind this quarter came from the Trump administration’s ban on AMD’s MI308 AI chip sales to China, which shaved off $800 million in potential revenue and led to an operating loss of $155 million. Nvidia, also affected by the ban, recorded a $4.5 billion write-down in Q1 and anticipates an $8 billion hit in its current quarter.

Trump reversed the ban last month, potentially easing some of the financial pressure on chipmakers in the quarters ahead.

Top Gainers

Several stocks experienced significant gains. Some of the top gainers included:

Xometry, Inc. (XMTR) +42.98%

Lemonade, Inc. (LMND) +29.54%

Tidewater, Inc. (TDW) +29.20%

DigitalOcean Holdings (DOCN) +28.88%

BWX Technologies (BWXT) +17.79%Top Losers

The top US stock losers today, based on percentage change included:

BellRing Brands, Inc. (BRBR) -32.55%

Inspire Medical (INSP) -32.35%

Gartner, Inc. (IT) -27.55%

Oddity Tech, Ltd. (ODD) -22.04%

Kyndryl Holdings (KD) -21.14%

Notables

• Staar Surgical shares moved higher. The implantable eye lens maker soared 45% after Alcon announced it will acquire the company for $28 per share in cash, valuing Staar at roughly $1.5 billion. The deal is expected to close within six to 12 months.
• Cloud software firm DigitalOcean jumped 27% following stronger-than-expected second-quarter results. The company also lifted its full-year revenue and earnings outlook.
• Shares of the crypto exchange Coinbase (COIN) fell over 5% after it announced a $2 billion offering of convertible senior bonds.
• Needham analyst Tom Nikic raised his price target on Ralph Lauren by $25 to $335, suggesting about 10% upside from Monday’s close. Nikic maintains a buy rating on the stock.
• Palantir Technologies shares jumped nearly 7% after the defense tech firm topped $1 billion in quarterly revenue for the first time. Palantir also beat second-quarter earnings and revenue estimates and raised its full-year outlook.
• Pfizer gained 2.8% after reporting better-than-expected second-quarter earnings and revenue. The company also raised its full-year earnings guidance.
• Yum Brands, the parent company of KFC, Taco Bell, and Pizza Hut dipped 1.8% after missing both earnings and revenue expectations for the second quarter.
• DuPont de Nemours shares rose more than 5% in premarket trading Tuesday on the heels of the chemicals company beating Wall Street’s expectations for the second quarter.
• Caterpillar shares fell more than 3% after the industrial giant posted weaker-than-expected earnings for the second quarter.
• Eaton (ETN) fell in early trading, despite delivering results and guidance that largely aligned with expectations.
• Spotify (SPOT) climbed on Monday after announcing it will raise premium subscription prices starting in September.
• Tyson Foods (TSN) gained after exceeding earnings and revenue estimates and boosting its fiscal 2025 outlook.
• IDEXX Laboratories (IDXX) surged on Monday after the pet healthcare company delivered better-than-expected earnings and raised both its profit and revenue forecasts for 2025.
• Palantir Technologies (PLTR) jumped following a strong earnings beat and an upward revision to guidance. Revenue surpassed expectations, crossing the $1 billion mark for the first time. Deutsche Bank upgraded the stock from Sell to Hold.
• Vertex Pharmaceuticals (VRTX) tumbled before the open despite posting solid quarterly results. The drop came after the company announced its pain drug failed to meet its primary endpoint in a Phase 2 trial and would no longer be pursued.
• Hims & Hers Health (HIMS) dropped in early trading. While EPS topped expectations and Q2 revenue jumped 73%, sales still fell short of analyst forecasts. The company reaffirmed full-year guidance.
• Rivian (RIVN) reported mixed second quarter earnings after the bell on Tuesday and did not report a gross profit.

What to Watch Ahead

Investors can look forward to more earnings this week from big names:

August 6: Expected earnings from Disney (DIS), Uber (UBER), Shopify (SHOP), AppLovin (APP), DoorDash (DASH), McKesson (MCK), Airbnb (ABNB), and Lyft (LYFT).

August 7: Preliminary Q2 productivity and expected earnings from Eli Lilly (LLY), ConocoPhillips (COP), Constellation Energy (CEG), Becton Dickinson (BDX), Kenvue (KVUE), Warner Bros Discovery (WBD), Gilead Sciences (GILD), Block (XYZ), Expedia (EXPE), and Wynn Resorts (WYNN).

August 8: Expected earnings from Under Armour (UA).