The U.S. stock market closed Friday, August 8, 2025, on a generally positive note, with technology stocks leading the charge and propelling the Nasdaq Composite to yet another record closing high. Despite persistent concerns surrounding new tariff policies and mixed economic signals, investor sentiment remained largely upbeat, driven by a strong rebound from last week's losses and a flurry of encouraging corporate earnings reports. The day's trading underscored the market's resilience, particularly in the tech sector, as it navigated a complex landscape of geopolitical uncertainties and monetary policy expectations.
Market Indexes: A Mixed but Upbeat Close
Major U.S. market indexes largely advanced by the close of trading on Friday, solidifying a week of gains. The tech-heavy Nasdaq Composite (IXIC) was a standout performer, adding 0.9% and closing at a new all-time high of 21,242.70 points, marking its 17th record close this year. This strong performance puts the Nasdaq on track for its best week since June, having tacked on nearly 3% since Thursday's close.
The S&P 500 (SPX) also saw significant gains, rising 0.8% to 6,396 points, placing it just 0.8% shy of its own record closing high achieved on July 31, 2025. The benchmark index is poised to recover most of its losses from a slide last week. In contrast, the Dow Jones Industrial Average (DJI) posted a more modest increase of 0.5%, closing at 43,968.64 points. All three major indexes are set to post weekly gains, rebounding from their biggest weekly losses in several months. The CBOE Volatility Index (VIX), a measure of market fear, eased further, closing at 16.57, reflecting calmer trading despite tariff headlines.
Key Market Drivers and Economic Landscape
The market's performance today was heavily influenced by a combination of strong corporate earnings, shifting expectations for Federal Reserve policy, and the ongoing impact of President Donald Trump's trade war. Hopes for a more dovish Federal Reserve board were fueled by President Trump's temporary pick of Stephen Miran to serve as a Federal Reserve governor, replacing Adriana Kugler. Miran, known for his critical stance on the Fed, is expected to advocate for easier monetary policy, reinforcing bets on a potential September rate cut. The CME FedWatch tool indicates traders see a 90% chance of the first rate cut of the year coming next month, with futures pointing to at least two cuts by year-end.
However, the shadow of new tariffs continued to loom over various sectors. President Trump began imposing higher import taxes on dozens of countries on Thursday, with a particular focus on semiconductor imports. While some chipmakers may sidestep these tariffs by increasing U.S. manufacturing, the broader economic impact remains a key concern. The unknown path of the economy amidst an unpredictable tariff policy has been a primary reason for the Fed to maintain its benchmark interest rate. Additionally, the Financial Times reported that U.S. imports of one-kilogram gold bullion bars are now subject to tariffs, causing COMEX gold futures to spike. In the bond market, Treasury yields edged higher, with the yield on the 10-year Treasury rising to 4.28% from 4.25% late Thursday.
Major Corporate News and Stock Movements
Friday saw several significant corporate announcements and stock movements:
Strong Earnings Reports:
- Gilead Sciences (GILD) jumped 8.4%, making one of the biggest gains on the market. The pharmaceutical company reported financial results that easily beat analysts' forecasts and raised its earnings forecast for the year.
- Expedia Group (EXPE) advanced 6.6% after also reporting encouraging financial results and raising its annual forecast for gross bookings and revenue growth.
- High Liner Foods (HLF) posted higher earnings, sales, and profit in its second quarter of 2025, with sales value increasing by 9.8% year-over-year.
- Plains All American Pipeline, L.P. (PAA) and Plains GP Holdings (PAGP) reported solid second-quarter 2025 results, with PAA's net income at $210 million. The company also announced agreements to divest substantially all of its NGL business for approximately $3.75 billion USD.
- The Wendy's Company (WEN) reported its second-quarter 2025 results, showing a 7.4% increase in diluted earnings per share to $0.29 and strong international systemwide sales growth of 8.7%. However, the company noted work is needed to improve U.S. business performance.
- TeraWulf Inc. (WULF) announced its second-quarter 2025 financial results, with revenue increasing 34% year-over-year to $47.6 million and BTC mining capacity growing 45.5%. The company expects to file its quarterly report after market close and has rescheduled its earnings conference call to early next week.
Other Notable Stock Movements:
- Mega-cap technology stocks were largely higher. Apple (AAPL) rose 4% for the third straight day, gaining 13% over that stretch, following its commitment to invest an additional $100 billion in U.S. manufacturing.
- Nvidia (NVDA) rose 0.8% and Microsoft (MSFT) rose 0.6%, with technology companies doing much of the heavy lifting for the market.
- Alphabet (GOOGL) climbed 2.5%, while Tesla (TSLA) and Meta Platforms (META) each tacked on more than 1%.
- Shares of embattled chipmaker Intel (INTC) were up 0.5% after sliding yesterday, despite President Trump's call for CEO Lip-Bu Tan's resignation.
- In contrast, social media platform Pinterest (PINS) dropped 9% and ad tech company The Trade Desk (TTD) plunged 38%, leading S&P 500 decliners, with The Trade Desk's CEO citing tariff impacts.
- Caterpillar Inc. (CAT) was a drag on the Dow, with its shares ending 2.5% lower after missing earnings estimates and citing tariffs as a major reason impacting its business.
Upcoming Market Events
Looking ahead, investors will be closely monitoring several key economic data releases and policy decisions that could significantly impact market direction:
- US CPI Data: The highly anticipated U.S. Consumer Price Index (CPI) data for July will be released next week, serving as a crucial inflation indicator. This release will be particularly scrutinized for signs of rising inflation in the wake of recent tariff developments.
- S&P Global Investment Manager Index: On Tuesday, the August S&P Global Investment Manager Index will provide insights into risk sentiment, expected returns, and sector preferences among money managers.
- Retail Sales and Industrial Production: Additional data on retail sales and industrial production will also be anticipated, following recent PMI data that showed a solid upturn in services activity.
- Reserve Bank of Australia (RBA) Meeting: The Reserve Bank of Australia will convene for its August meeting, with a potential rate cut on the table.
- Canadian Employment Report: The Canadian Employment Report for July is also due on Friday, August 8th.
The market remains in a delicate balance, with strong corporate performance and hopes for accommodative monetary policy battling against the uncertainties of trade policy. The coming week's economic data will provide further clarity on the health of the economy and could set the tone for market movements through August.
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.