U.S. equities are experiencing a day of mixed performance on Tuesday, August 5, 2025, as investors weigh a fresh batch of economic data and corporate earnings reports, while also keeping a close eye on lingering concerns over trade tariffs and the Federal Reserve's potential interest rate decisions. Following a strong rebound on Monday, which saw major indexes erase Friday's losses, today's trading reflects a cautious sentiment across Wall Street.
Major Index Performance
As of mid-day trading, the major U.S. market indexes are showing slight declines, indicating a period of digestion after Monday's significant gains. The S&P 500 (SPX) is down approximately 0.5% to around 6,299.19, pulling back from its recent highs. The Dow Jones Industrial Average (DJIA) has also slipped, down about 0.1% to 44,111.74 points. Meanwhile, the tech-heavy Nasdaq Composite (IXIC) is experiencing a more notable dip, falling around 0.7% to 20,916.55, as some technology stocks face profit-taking after a robust rally. This follows Monday's strong performance where the S&P 500 surged 1.5%, the Nasdaq Composite rose nearly 2%, and the Dow Jones gained about 585 points. The Russell 2000 index of smaller companies, however, bucked the trend, rising 0.6% to 2,225.67.
The slight downturn today comes after a weaker-than-expected report on activity for U.S. businesses in services industries, which has added to worries that President Donald Trump's tariffs may be impacting the economy. Despite this, increased hopes for upcoming interest rate cuts by the Federal Reserve, coupled with a stream of stronger-than-expected profit reports from some U.S. companies, are helping to temper the losses.
Upcoming Market Events
The economic calendar for the remainder of the week and early next week holds several key events that could influence market direction. Today, investors are closely monitoring the U.S. Trade Balance and the crucial July ISM Non-Manufacturing Composite Index, with the latter being particularly significant given the services sector's large contribution to the U.S. economy. The ISM Services PMI report, released earlier today, missed expectations, coming in at 50.1, just at the brink of contraction territory, which contributed to the market's retraction.
Looking ahead, the week will feature the Bank of England's interest rate decision on Thursday, where a 25-basis-point cut is anticipated. While this is an international event, global monetary policy shifts can impact investor sentiment worldwide. Domestically, market participants are keenly awaiting the July CPI report, expected later this week, which will provide crucial insights into inflationary pressures. Additionally, preliminary August consumer sentiment data and the release of the Federal Reserve's July meeting minutes next week will be closely scrutinized for clues on the central bank's future policy trajectory, especially after a weaker July jobs report intensified bets for a September rate cut.
Major Stock News and Earnings Recap
Corporate news continues to drive significant stock movements, with several companies making headlines.
Palantir Technologies (PLTR) shares soared, jumping over 5% in premarket trading and continuing to climb, after the company reported second-quarter revenue exceeding $1 billion—its first billion-dollar quarter—and adjusted earnings of $0.16 per share, both beating analyst estimates. The data analytics software provider also raised its full-year revenue forecast, citing the "astonishing impact of AI leverage" on its commercial and U.S. government businesses.
Advanced Micro Devices (AMD) is in focus today, with the chipmaker set to report its second-quarter results after the market close. Options pricing suggests traders anticipate a significant move, potentially over 7%, for the stock by the end of the week. AMD's shares have already outperformed the S&P 500 and Nvidia (NVDA) year-to-date, gaining over 45% in 2025. After the market close, AMD indeed reported a record $7.7 billion in second-quarter revenue, with diluted earnings per share of $0.54, though results were impacted by export controls on its MI308 data center GPU products.
Other companies reporting earnings after hours today include Snap Inc. (SNAP), Rivian Automotive (RIVN), and Yum! Brands (YUM). Investors will be looking for updates on their respective growth trajectories and outlooks.
In other company news:
- Hims & Hers Health (HIMS) saw its shares tumble, down 13% after reporting weak revenue and guidance for the second quarter, missing analyst estimates.
- Vertex Pharmaceuticals (VRTX) also experienced a significant decline, falling 14% despite beating earnings expectations, as the market reacted to news regarding its experimental drug development.
- Wayfair Inc. (W) surged 12.7% after reporting second-quarter 2025 earnings that surpassed analyst estimates.
- ON Semiconductor Corporation (ON) plummeted 15.6% after missing second-quarter earnings expectations.
- Tyson Foods, Inc. (TSN) gained 2.4% after beating third-quarter fiscal 2025 earnings estimates.
- Thomson Reuters Corporation (TRI) announced the launch of its next-generation AI solutions, including CoCounsel Legal and CoCounsel Tax, aimed at transforming corporate workflows. This move highlights the continued emphasis on AI integration across various industries.
- Core Natural Resources, Inc. (CNR) reported a net loss for Q2 2025 but highlighted strong operating cash flow and increased merger-related synergies.
- CVD Equipment Corporation (CVV) announced it will release its Q2 2025 financial results after market close on August 12, 2025.
The broader market continues to grapple with the dual forces of economic indicators, particularly those related to tariffs, and strong corporate earnings, especially from the technology sector. While some analysts warn of potentially lower long-term returns for the S&P 500 through 2035 due to high valuations and market concentration, the current environment suggests a continued focus on company-specific performance and the Federal Reserve's path forward.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.