Market Snapshot for Tuesday August 19th, 2025
S&P 500 – 6,411.37 (-0.59%)
Dow Jones – 44,922.27 (+0.023%)
NASDAQ – 21,314.95 (-1.46%)
Market Performance
The S&P 500 pulled back on Tuesday, dragged down by Nvidia shares and a broad decline in technology stocks.
The benchmark index fell 0.59% to close at 6,411.37, while the Nasdaq Composite dropped 1.46% to 21,314.95. The Dow Jones Industrial Average inched higher, adding 10.45 points, or 0.02%, to finish at 44,922.27, hitting a fresh record during the session thanks to gains in Home Depot.
Megacap tech and major chipmakers bore the brunt of the losses. Nvidia slipped 3.5%, Advanced Micro Devices fell 5.4%, and Broadcom dropped 3.6%. High-flying software company Palantir plunged over 9%, becoming the S&P 500’s worst performer of the day. Other prominent tech names, including Tesla, Meta Platforms, and Netflix, also faced selling pressure.
“The AI trade may not be breaking, but it could be catching its breath,” said Jayson Bronchetti, chief investment officer at Lincoln Financial. “After a more than 40% run for the Nasdaq since April, a pause is historically normal as the market recalibrates around recent economic data and anticipated Fed policy.” Bronchetti added, “As capital shifts toward companies across a broader range of sectors that can apply AI to boost margins and efficiency, potential rotation and wider participation may support a more durable advance, though some near-term volatility is likely.”
Economic Takeaways –
- The dollar index pared losses and was steady, while benchmark 10-year yields slipped.
- In Canada, July CPI came in softer than expected, especially on the Bank of Canada’s trimmed mean measure, which strips out volatile components. That has bolstered market bets for a potential September rate cut, though investors remain divided, with odds of a 25-basis-point move sitting around 40%.
- Housing starts rose 5.2% in July to an annualized 1.428 million units, above consensus, but building permits fell 2.8% to 1.354 million—the fourth consecutive monthly decline, marking the longest losing streak since 2008.
- Fed policy expectations shifted modestly: the CME FedWatch Tool now shows an 83% probability of a September rate cut, down from 98% last week, with 17% odds the Fed holds steady.
- President Trump pushed for renewed Ukraine negotiations, reportedly urging Russian President Vladimir Putin to meet with Volodymyr Zelensky. European leaders expressed support for Zelensky during his meeting with Trump on Monday, while markets paused amid uncertainty over Ukraine’s future.
Gold –
- Gold prices edged lower on Tuesday as the U.S. dollar firmed, while investors hunkered down for Federal Reserve Chair Jerome Powell’s speech at Jackson Hole later this week.
- Spot gold fell 0.4% to $3,317.71 per ounce by 1:42 a.m. ET (1742 GMT). The contract fell to its lowest level since August 1 earlier in the session.
- U.S. gold futures for December delivery settled 0.6% lower at $3,358.7.
Oil –
- Oil prices were down after the previous session’s 1% gain. Geopolitical risks have eased for oil this week.
- Brent crude futures fell 82 cents, or 1.23%, to $65.78 a barrel by 1054 GMT. U.S. West Texas Intermediate crude futures for September delivery, set to expire on Wednesday, fell 86 cents, or 1.36%, to $62.56 per barrel.
Crypto –
- Crypto-linked stocks tumbled Tuesday as Bitcoin dropped over 2%, with Bitcoin proxy Strategy and trading app Robinhood each falling about 6%.
- Miners Mara Holdings and Riot Platforms slipped more than 5% and 2%, respectively.
Loop Capital lifts Amazon price target, cites cloud growth potential
Loop Capital raised its price target on Amazon to $300 per share from $290, while reiterating its buy rating on the e-commerce giant in a Monday note. The new target suggests roughly 30% upside from Monday’s closing price of $231.49.
The firm highlighted Amazon’s cloud business, AWS, as a key driver for future growth. “AWS has yet to hit its generative AI inflection in revenue growth,” said analyst Rob Sanderson. “While delivering its second-best quarter ever for incremental margin and citing capacity constraints, its two competitors saw meaningful growth acceleration last quarter. We believe this is due to a longer capex cycle, customer concentration—OpenAI is an outsized contributor to Azure—and a somewhat later start in capacity expansion. That acceleration is expected in the second half of this year and into 2026.”
Amazon shares have risen about 6% so far in 2025.
Trump expands steel and aluminum tariffs to 407 additional products
The Trump administration has quietly broadened its 50% steel and aluminum tariffs to cover more than 400 additional product categories, including fire extinguishers, machinery, construction materials, and specialty chemicals containing or made from steel and aluminum. The expanded tariffs, which took effect Monday, significantly increase the reach of the president’s trade measures, raising concerns among economists about potential strains on U.S. consumers and the supply chain.
Top Gainers
Several stocks experienced significant gains. Some of the top gainers included:
- WW International (WW) +10.50%
- Premier, Inc. (PINC) +7.29%
- Intel Corp. (INTC) +6.97%
- NorthWestern Energy Group, Inc. (NEW) +6.34%
- LXP Industrial Trust (LXP) +6.27%
Top Losers
The top US stock losers today, based on percentage change included:
- Viking Therapeutics (VKTX) -42.12%
- Newegg Commerce (NEGG) -16.54%
- Fabrinet (FN) -12.81%
- Credo Technology (CRDO) -10.48%
- LanzaTech Global (LNZA) -10.40%
Notables
- Intel (INTC): Initially fell after reports the Trump administration could convert Chips Act grants into equity stakes, but rebounded after SoftBank announced a $2 billion investment.
- Meta Platforms (META): Slid following a Texas AG investigation into alleged deceptive AI-driven mental health services for children and fell nearly 3% after reports of its fourth AI operations restructuring in six months.
- Home Depot (HD): Edged higher despite missing earnings and revenue; investors reassured by reaffirmed guidance and a 1.4% year-over-year rise in same-store sales.
- Target (TGT): Gained after Evercore ISI added it to the tactical outperform list.
- Best Buy (BBY): Jumped after launching a digital marketplace that more than doubled its product assortment.
- Starbucks (SBUX): Will provide a modest 2% salary hike to all North American employees.
- Amazon (AMZN): Price target raised to $300 from $290 by Loop Capital, highlighting AWS’s untapped generative AI potential.
- Viking Therapeutics (VKTX): Tumbled 35% pre-market after Phase 2 trial results revealed a 28% patient dropout, despite participants losing 12.2% of body weight over 13 weeks.
- CVS Health (CVS): Rose after UBS upgraded the stock, citing early improvements in its healthcare benefits segment.
- UnitedHealth (UNH): Soared 12% last Friday after Berkshire Hathaway revealed a 5-million-share stake valued at ~$1.6 billion.
- Medtronic (MDT): Slipped despite beating expectations and raising guidance; shares also fell after two new independent board appointments amid activist investor Elliott Investment Management becoming a major shareholder.
- NorthWestern Energy: Jumped on its merger with Black Hills, creating a leading regional electric and natural gas utility.
- Caterpillar (CAT): Rose after an upgrade to Outperform from Evercore ISI, citing strong construction equipment margins and volume leverage.
- First Solar (FSLR): Surged after Treasury guidance extended the qualifying window for renewable project tax credits, boosting solar and wind stocks.
- MicroStrategy: Expanded Bitcoin holdings with a $51.4 million purchase.
- Tether: Appointed former White House cryptocurrency adviser Bo Hines.
- Duolingo (DUOL): Climbed following a KeyBanc upgrade to Overweight, citing multiple growth drivers.
- Tesla (TSLA): Slipped, extending a three-day losing streak amid light news flow.
- Nexstar Media Group (NXST): Set to acquire Tegna Inc. for $6.2 billion, forming the nation’s largest local TV station network.
- Dayforce (DAY): Surged after Bloomberg reported potential buyout interest in the HR software company.
- Opendoor Technologies (OPEN): Shares jumped 6% at Tuesday’s open before trimming gains amid ongoing CEO search.
What to Watch Ahead
August 20: FOMC minutes and expected earnings from TJX Companies (TJX), Lowe’s (LOW), Analog Devices (ADI), Target (TGT), Estee Lauder (EL), and Baidu (BIDU).
August 21: July existing home sales, July leading indicators, start of the Fed’s Jackson Hole Policy Symposium, and expected earnings from Walmart (WMT), Intuit (INTU), Workday (WDAY), and Ross Stores (ROST).
August 22: Expected earnings from BJ’s Wholesale Club (BJ).
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