Midday Market Update: Mixed Performance as S&P 500 and Nasdaq Pull Back
Major U.S. stock indexes showed mixed performance in midday trading Friday, August 15th, 2025, as investors digested fresh economic data and significant corporate news. The Dow Jones Industrial Average reached a milestone, hitting its first record high since December, while the S&P 500 and Nasdaq took a breather after their recent rally.
The Dow Jones was up 0.3% at midday, powered by an impressive 11% surge in UnitedHealth Group (UNH) following news that Warren Buffett’s Berkshire Hathaway had taken a significant stake in the health insurer. Meanwhile, the benchmark S&P 500 dipped 0.3% after closing at record highs for three consecutive sessions, and the tech-heavy Nasdaq Composite declined 0.5%.
Economic Data Shows Mixed Signals
Today’s economic releases painted a somewhat mixed picture of the U.S. economy. July retail sales rose 0.5% month-over-month to a seasonally adjusted $726.1 billion, slightly below expectations of 0.6% but still indicating consumer resilience. The report showed a 3.9% year-over-year increase, and June’s figures were revised upward significantly from 0.6% to 0.9%, suggesting stronger consumer spending than initially reported.
However, the University of Michigan’s preliminary August consumer sentiment index fell by 3.1 points to 58.6, considerably weaker than expectations for a slight increase to 62.0. The survey revealed that consumer expectations for inflation rose to 4.9% over the next year and 3.9% for the next 5-10 years, with 58% of consumers planning to cut spending due to inflation concerns.
In other economic news, July industrial production declined 0.1% month-over-month, slightly below expectations of unchanged, though June’s figure was revised upward to 0.4% from 0.3%. Manufacturing production remained flat in July, matching market expectations.
Major Stock Movers and Corporate News
UnitedHealth Leads Healthcare Rally
UnitedHealth Group (UNH) was the standout performer, soaring more than 11% after regulatory filings revealed that Warren Buffett’s Berkshire Hathaway had acquired a stake in the company during the second quarter. The news also lifted other health insurance stocks, with Centene Corp. (CNC) up 5.5% and Molina Healthcare (MOH) and Elevance Health (ELV) each gaining about 4%.
Tech and Semiconductor Stocks Under Pressure
Major technology stocks showed mixed performance. Nvidia (NVDA) and Broadcom (AVGO) both declined about 2%, while Tesla (TSLA) fell 1%. Apple (AAPL) and Amazon (AMZN) edged lower, while Microsoft (MSFT), Alphabet (GOOG), and Meta Platforms (META) each gained less than 1%.
The semiconductor sector faced significant pressure, with Applied Materials (AMAT) plunging 13% after issuing disappointing guidance. KLA Corp. (KLAC) and Lam Research (LRCX) each dropped about 8%, dragging down the VanEck Semiconductor ETF (SMH) by more than 2%.
However, Intel (INTC) bucked the trend, jumping 5% following reports that the Trump administration is considering taking a stake in the chipmaker using U.S. Chips Act funds.
Upcoming Market Events and Earnings
Investors are closely watching several key events that could impact markets in the coming days. The Trump-Putin summit scheduled for today at approximately 3 PM ET could have significant implications for tariffs, oil prices, and European security.
Next week’s economic calendar includes:
– August 18: Expected earnings from Palo Alto Networks (PANW)
– August 19: July housing starts and building permits; earnings from Home Depot (HD) and Medtronic (MDT)
– August 20: FOMC minutes release; earnings from TJX Companies (TJX), Lowe’s (LOW), Analog Devices (ADI), Target (TGT), Estee Lauder (EL), and Baidu (BIDU)
Fed Rate Cut Expectations and Inflation Outlook
Markets continue to adjust to the inflation outlook following Thursday’s Producer Price Index (PPI) report, which came in hotter than expected and tempered expectations for interest rate cuts by the Federal Reserve. The July final-demand PPI surged to 3.3% year-over-year (nominal) and 3.7% year-over-year (core), suggesting companies are passing through tariffs at the wholesale level at a higher pace than previously thought.
Despite this, the chances of a rate cut at next month’s Fed meeting remain high at 93%, though expectations for a larger 50-basis-point cut have been erased. Chicago Fed President Austan Goolsbee delivered mildly hawkish remarks today, stating he would like to see at least one more inflation report to ensure persistent inflation pressures aren’t emerging.
Market Outlook
As the trading week draws to a close, the major indexes remain on track to post weekly gains for the second consecutive week, despite today’s mixed performance. The market’s recent rally has been driven by optimism about potential interest rate cuts and generally positive corporate earnings.
However, concerns about inflation, particularly in light of the recent PPI data, and uncertainty surrounding tariff policies continue to create some headwinds. President Trump has indicated he’ll be setting tariffs next week on steel and semiconductors, though he recently extended the tariff truce with China for another 90 days until November.
With the consumer sentiment report showing increased inflation expectations and plans to reduce spending, investors will be closely monitoring upcoming economic data for signs of how the economy is responding to these various pressures.
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.