U.S. equity markets presented a mixed picture in afternoon trading on Friday, August 15, 2025, as investors navigated a landscape of fresh economic data, corporate earnings, and significant geopolitical developments. While the Dow Jones Industrial Average (DJIA) once again touched a new intraday record, the broader S&P 500 (SPX) and the tech-heavy Nasdaq Composite (IXIC) showed signs of cooling, reflecting a cautious sentiment after a strong rally.
The Dow Jones Industrial Average (DJIA) was a notable outperformer, recently up 0.3%, after surging to its first record high since December in the session's opening minutes. It hit an all-time intraday record of 45,203.52 before paring some gains as the afternoon progressed. This upward momentum was largely fueled by a significant surge in healthcare stocks. In contrast, the benchmark S&P 500 (SPX) was down 0.2% in recent trading, following three consecutive record-setting closes. The tech-heavy Nasdaq Composite (IXIC) also experienced a decline, down 0.4%, as technology stocks faced profit-taking pressures. This divergence highlights a rotation within the market, with certain sectors gaining favor while growth-oriented technology stocks take a breather.
Sector performance underscored this mixed sentiment. The healthcare sector was a standout, propelled by substantial news from UnitedHealth Group Inc. (UNH). Conversely, the technology sector, particularly semiconductor companies, showed weakness. Applied Materials (AMAT) tumbled significantly, contributing to the Nasdaq's decline. On Thursday, eight out of the 11 broad sectors of the S&P 500 ended in negative territory, with the Materials Select Sector SPDR (XLB), Industrials Select Sector SPDR (XLI), and Consumer Staples Select Sector SPDR (XLP) all registering declines.
Looking ahead, several key market events are on investors' radar. Next week, market participants will be closely watching the annual economic symposium at Jackson Hole, Wyoming, where Federal Reserve Chair Jerome Powell's remarks will be scrutinized for any clues on future monetary policy. The August flash Purchasing Managers' Index (PMI) data, due next Thursday, will provide early insights into economic conditions across major developed economies, especially concerning the impact of recent tariff implementations. Additionally, the week of August 18th will bring further economic data, including U.S. existing home sales and various housing data, alongside earnings reports from some of the largest U.S. retailers.
Today's economic calendar saw the release of July retail sales data, which rose by a solid 0.5%, meeting analysts' expectations and indicating continued consumer spending. However, the University of Michigan's preliminary August Consumer Sentiment index dropped to 58.6 from 61.7, suggesting growing inflation concerns among consumers. This follows yesterday's hotter-than-expected Producer Price Index (PPI) for July, which jumped 0.9%, tempering expectations for near-term interest rate cuts by the Federal Reserve. The Atlanta Fed's GDPNow model estimate for real GDP growth in the third quarter of 2025 remained at 2.5% as of August 15, with its next update scheduled for Tuesday, August 19.
In major corporate news, UnitedHealth Group Inc. (UNH) shares soared over 11% in afternoon trading. This significant jump followed the disclosure late Thursday that Warren Buffett's Berkshire Hathaway (BRK.B, BRK.A) had taken a substantial $1.57 billion stake in the healthcare conglomerate, signaling renewed confidence in the sector.
On the other hand, semiconductor equipment manufacturer Applied Materials (AMAT) saw its shares plunge by approximately 13-14%. Despite reporting better-than-expected earnings per share for the third quarter, the company issued a cautious outlook, forecasting lower-than-expected revenue for the current quarter due to "digestion of capacity in China and non-linear demand from leading-edge customers."
Intel (INTC) also made headlines, with its stock jumping over 4% in Thursday's after-market hours. This move came after a Bloomberg report indicated that the Trump administration is considering taking a government stake in the chipmaker to support its efforts to expand U.S. production. Other notable corporate movements included Deere & Co. (DE) shares tumbling 6.8% after the company reduced its fiscal 2025 profit guidance, and Amcor plc (AMCR) plunging 11.9% after missing earnings estimates. Conversely, DLocal Limited (DLO) surged 31.3% and Cellebrite DI Ltd. (CLBT) jumped 9.3% after both companies reported stronger-than-expected second-quarter earnings.
Beyond earnings, Faraday Future Intelligent Electric Inc. (FFAI) reminded the public about a major strategy upgrade announcement scheduled for Saturday, August 16th, at Pebble Beach. Lyft (LYFT) announced that its co-founders, Logan Green and John Zimmer, are stepping down from their board roles. Even Apple (AAPL) saw news, with its Apple Watch regaining the blood oxygen feature after a patent case resolution. Investment firms Soros and Appaloosa also reportedly boosted their stake in Nvidia (NVDA).
In the broader market, the U.S. dollar index was down 0.4% at 97.84, trading at its lowest level in three weeks. The yield on the 10-year Treasury rose to 4.33% from 4.29% yesterday, reflecting the impact of the wholesale inflation report. Crude oil prices also saw a dip, with West Texas Intermediate (WTI) futures slipping 1.1% to $63.25 per barrel, reaching their lowest levels since early June. Geopolitical developments also captured attention, with President Trump's meeting with Russian President Vladimir Putin in Alaska today to discuss the Ukraine conflict, a meeting that investors are cautiously optimistic could influence global markets.
Overall, Friday's afternoon trading session showcased a market grappling with conflicting signals. While the Dow's record-setting performance offered a bullish highlight, the broader market's mixed performance and the tech sector's struggles indicated underlying caution. Investors remain keenly focused on upcoming economic data and central bank commentary, particularly regarding inflation and interest rate expectations, as they navigate the remainder of 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.