Evening Market Recap

Sophia Reyes · August 20, 2025 7:17 PM

Market Snapshot for Wednesday August 20^th, 2025

S&P 500 – 6,395.78 (-0.24%)

Dow Jones – 44,938.31 (+0.036%)

NASDAQ – 21,172.86 (-0.67%)

Market Performance

The S&P 500 slipped 0.24% to 6,395.78 on Wednesday, logging its fourth straight decline, while the Nasdaq Composite fell 0.67% to 21,172.86 for a second losing session. Tech weakness weighed on both indexes as investors booked profits in high-flying semiconductor and mega-cap names. Nvidia closed slightly lower, AMD and Broadcom shed about 1% each, Palantir slipped 1%, and Intel tumbled 7%. Apple, Amazon, Alphabet and Meta also declined. By contrast, the Dow Jones eked out a 16-point gain to finish at 44,938.31.

Retail earnings painted a mixed picture: Target dropped 6% on another sales decline and a CEO transition, while Lowe’s edged higher after beating estimates.

Adding to market jitters, the Federal Reserve’s July meeting minutes highlighted concern over both inflation and employment risks. Although most policymakers backed holding rates steady, Governors Waller and Bowman dissented—the first dual dissent since 1993. Investors now await Fed Chair Jerome Powell’s Friday remarks for rate-cut signals, with futures pricing in an 80% chance of a September cut, according to CME FedWatch.

“After such a strong run, it’s not surprising to see profit-taking in tech,” said BMO Private Wealth strategist Carol Schleif, noting thin August trading volumes have amplified swings. “But if Powell strikes a hawkish tone, elevated rates could weigh further on the sector.”

Economic Takeaways –

• The VanEck Semiconductor ETF (SMH) fell for a second straight session on Wednesday, putting the fund on track for its worst week since May.
• Fed minutes this week revealed that this was the first time that multiple governors voted against a rate decision in more than 30 years.
• Trump has demanded the resignation of Governor Lisa Cook amid claims that she committed mortgage fraud regarding federal loans she received for properties in Georgia and Michigan.

Gold –

• The gold market continues to trade below initial resistance at $3,350 an ounce as the Federal Reserve tries to extend the clock, saying it needs more time to evaluate the health of the U.S. labor market and the trajectory of inflation, according to the minutes from the July monetary policy meeting.

Oil –

• Oil prices climbed about 2% on Wednesday 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.
• Brent crude futures were up $1.05, or 1.6%, to settle at $66.84 a barrel. U.S. West Texas Intermediate (WTI) crude futures rose 86 cents, or 1.4%, to settle at $63.21.
• The U.S. Energy Information Administration said energy firms pulled 6.0 million barrels of crude from inventories during the week ended August 15.

Crypto –

• Bitcoin slipped lower after the fed minutes and hovers around $114,000.
• Coinbase CEO Brian Armstrong has said that Bitcoin could reach $1M by 2030.

Morgan Stanley Cautions UnitedHealth Recovery Could Take Longer

UnitedHealth (UNH) has rallied more than 11% over the past week, fueled by reports that big-name investors including Warren Buffett’s Berkshire Hathaway have been buying shares. Still, the stock remains down about 40% year-to-date.

Despite renewed interest, Morgan Stanley analyst Erin Wright cut her estimates and lowered the firm’s price target on UnitedHealth to $325 from $342, citing a “more prolonged turnaround story” following second-quarter results. The new target implies roughly 12% upside from Tuesday’s close.

Wright noted that while UnitedHealth may ultimately beat expectations as its recovery unfolds, she is taking a more cautious stance for now. Key signs of improvement would include margin stabilization in the company’s Medicare Advantage and Optum Health segments.

Fed Minutes Highlight Inflation and Labor Market Concerns

Federal Reserve officials expressed unease about both inflation and employment at their July meeting, while most agreed it was still premature to cut rates, minutes released Wednesday showed.

“Participants generally pointed to risks to both sides of the Committee’s dual mandate, emphasizing upside risk to inflation and downside risk to employment,” the minutes said. While most viewed inflation as the bigger threat, a few policymakers flagged labor market weakness as the more pressing concern.

Top Gainers

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

Newegg Commerce (NEGG) +23.76%

LanzaTech Global, Inc. (LNZA) +18.05%

Scholar Rock Holding (SRRK) +14.26%

Stem, Inc. (STEM) +13.27%

Seres Therapeutics (MCRB) +10.40%

Top Losers

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

James Hardie Industries plc (JHX) -34.44%

Alcon, Inc. (ALC) -10.08%

Oscar Health, Inc. (OSCR) -8.18%

VEON Ltd. (VEON) -7.97%

Intel Corp. (INTC) -6.99%

Notables

• Shares of Novavax shed about 7.5% following a downgrade at Bank of America to underperform from neutral Wednesday.
• Palantir Technologies (PLTR) shares fell more than 2% Wednesday, putting the defense tech firm on track for a sixth straight loss, its longest losing streak since April 2024. Despite the pullback, the stock has more than doubled in 2025.
• Medtronic (MDT) jumped 4% after issuing stronger-than-expected guidance. For fiscal 2026, tariff impacts are now seen at about $185 million, down from a prior $200–$250 million estimate. Medtronic also raised its non-GAAP EPS outlook to $5.60–$5.66, topping both its earlier $5.50–$5.60 range and the FactSet consensus of $5.55.
• Avis Budget (CAR) shares slid 5% after Bank of America cut its rating to underperform from buy, citing weak fundamentals and macro headwinds. Analysts noted the stock’s June rally had outpaced broader market trends.
• Lowe’s (LOW) jumped 3% after topping EPS estimates and roughly matching revenue forecasts. The company raised full-year guidance, reported stronger same-store sales, and announced the acquisition of Foundation Building Materials to further its push into the professional renovation market.
• Target (TGT) sank nearly 10% despite beating on both EPS and revenue and reaffirming guidance. Weakness was attributed in part to the announcement that COO Michael Fiddelke will succeed CEO Brian Cornell next year—some investors had hoped for an external leader. Sales also fell from a year ago, and expectations heading into earnings were already low.
• Technology stocks broadly retreated, with Marvell Technology (MRVL) down 6%, AppLovin (APP) off nearly 6%, Super Micro Computer (SMCI) sliding 5.7%, and AMD (AMD) dropping 5.4%. Palantir (PLTR) extended its losing streak to five sessions, falling another 3% this morning. Analysts noted that while not yet a trend, the pullback may reflect investors rotating into other areas of the market.
• Crypto-linked names slumped as bitcoin dropped 2.7% to its weakest level since July 10. MicroStrategy (MSTR), Coinbase (COIN), and Circle Internet Group (CRCL) each fell more than 5%. The weakness followed concerns the Fed may keep policy tighter for longer. Bitcoin, however, edged up 0.6% in early Wednesday trading.
• Estee Lauder (EL) tumbled 9% after missing earnings expectations and issuing weak guidance.
• La-Z-Boy (LZB) collapsed 21.5% before the open on disappointing results and outlook.
• Analog Devices (ADI) gained 3.5% on an earnings beat.
• Snowflake (SNOW) rose 2.4% after Bank of America upgraded the stock to Buy from Neutral, citing strong momentum ahead of next week’s earnings report.
• TJX (TJX) climbed 3.8% on solid quarterly results and an upbeat fiscal 2026 outlook for earnings and same-store sales.
• Toll Brothers (TOL) slipped 1.6% despite reporting strong earnings and home sales, as delivery guidance underwhelmed investors.
• Hertz (HTZ) announced on Wednesday that it has partnered with Amazon Autos (AMZN) to sell a portion of its used car inventory through the online platform. The move is designed to simplify the process for customers looking to purchase vehicles from Hertz’s fleet.
• Baidu (BIDU) saw its shares slip 0.2% as second-quarter revenue declined. While its cloud services showed strong growth, weakness in the core advertising business offset the gains.

What to Watch Ahead

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).