U.S. equities are demonstrating robust performance this Friday, August 8, 2025, with major indexes extending their weekly gains into afternoon trading. The market's positive momentum is largely attributed to a blend of encouraging corporate earnings reports, significant developments in the artificial intelligence (AI) sector, and a moderating sentiment around ongoing trade tariffs. Investors are closely watching key economic indicators and upcoming Federal Reserve discussions that could shape the market's trajectory in the coming weeks.
Major Market Indexes Show Strength
All three major U.S. stock indexes are trading higher this afternoon, signaling a strong close to the trading week. The S&P 500 (SPX) is up 0.7%, hovering just below its all-time record high, and is on track to recover most of its losses from a slide experienced last week. Similarly, the tech-heavy Nasdaq Composite (IXIC) has added 0.9%, building on the all-time high it set yesterday and reaching another record today. The Dow Jones Industrial Average (DJI) has also seen solid gains, rising 0.5% in early afternoon trading. For the week, the Nasdaq is pacing for its best performance since June, having tacked on nearly 3%, while the S&P 500 and Dow are both up more than 1%. This broad-market rebound comes after major indexes recorded their biggest weekly losses in several months last week, with concerns about tariffs and the economic outlook having subsided somewhat this week.
Afternoon Trading Activity and Sector Performance
The technology sector continues to be a primary driver of the market's upward movement, with many of the largest tech companies contributing significantly to the Nasdaq's record-setting run. Beyond tech, several companies are making headlines due to strong earnings. Gilead Sciences (GILD) jumped 8.8% after reporting financial results that easily surpassed analyst forecasts and raising its earnings outlook for the year. Expedia Group (EXPE) also saw a substantial gain, advancing 4.4% following its own encouraging financial results.
However, not all companies are participating in the rally. The Trade Desk (TTD) shares plunged nearly 40% today, making it one of the biggest decliners in the S&P 500 for 2025, after the advertising software provider warned that new U.S. tariffs are impacting advertising spending and announced a CFO change. Intel (INTC) also saw its shares down about 1% today, giving up early-session gains, following President Donald Trump's call for CEO Lip-Bu Tan's resignation yesterday, though Tan has stated he has the board's support. On Thursday, the Financials Select Sector SPDR (XLF) and Healthcare Select Sector SPDR (XLV) were among the worst performers, while utilities and consumer staples showed gains.
Upcoming Market Events to Watch
Looking ahead, investors will be keenly focused on several key economic data releases next week. The most anticipated will be the U.S. inflation data, including the Consumer Price Index (CPI) and Producer Price Index (PPI) for July, which are scheduled for release on August 12 and August 14, respectively. These figures will provide crucial insights into whether the White House's recent imposition of hefty tariffs on chip imports and other goods is translating into higher costs across sectors, a point of contention given that core goods, most sensitive to duties, comprise only a fifth of the CPI.
Beyond inflation, the minutes from the Federal Open Market Committee (FOMC) meeting will be released on August 20, offering further clues on the Federal Reserve's interest rate policy. The Fed's stance on interest rates remains a central theme, especially as the unknown path of the economy amid an unpredictable tariff policy has been cited as a key reason for the Fed to hold its benchmark interest steady. President Trump's recent nomination of Stephen Miran to the Fed's Board of Governors, who is expected to bring a dovish voice, could also influence future policy decisions. The annual Jackson Hole Symposium, a gathering of central bankers and economists, is also on the calendar for August and will be closely watched for any forward guidance.
Major Stock News and Developments
Apple (AAPL) shares have been a notable performer, rising 1.7% today following an analyst upgrade from Bank of America, which increased its price target to $250 from $240. The iPhone maker also saw its stock gain more than 4% today, extending a three-day rally, after committing to invest an additional $100 billion in U.S. manufacturing. Apple reported strong quarterly earnings of $1.57 per share, exceeding estimates, with revenue of $94.04 billion, a 9.6% increase year-over-year.
Nvidia (NVDA) continues its impressive run, rising 0.9% today. Goldman Sachs recently raised its price target for Nvidia to $200 from $185, maintaining a "buy" rating ahead of the company's upcoming second-quarter earnings announcement. Analysts anticipate Nvidia will exceed expectations, driven by robust AI chip demand and strong execution, with particular attention on updates regarding its Blackwell and Rubin chips, H20 chip compliance in China, and gross margins. Nvidia's stock has surged 34% year-to-date, outperforming most of the tech sector, and is seen as a major beneficiary of strong AI capital expenditures.
Tesla (TSLA) experienced a slight dip of less than 1% in after-hours trading following news of a significant shift in its AI hardware strategy. The company has reportedly dissolved its in-house Dojo supercomputer team, opting instead to partner with established technology companies like Samsung, Nvidia (NVDA), and AMD (AMD). This pivot includes a $16.5 billion agreement with Samsung to supply AI semiconductors through 2033. Despite this, retail sentiment around Tesla jumped to "extremely bullish" today after the EV giant was granted a rideshare license in Texas, with shares trading 3% higher at the time of writing.
Alphabet (GOOGL) shares climbed more than 2% today. The Google parent recently reported strong second-quarter results, with Search revenues increasing 11.7% year-over-year to $54.19 billion, surpassing consensus estimates. Google Cloud revenues also surged 31.7% to $13.62 billion, propelled by AI solutions and expanding partnerships. The company's AI Overviews are now reaching 2 billion users monthly, boosting engagement. Analysts maintain a "Moderate Buy" consensus rating on Alphabet, with an average target price of $211.53.
Amazon (AMZN) ticked lower today. Despite beating second-quarter earnings expectations, Amazon's stock fell 7% due to disappointing third-quarter operating income guidance. The company's Amazon Web Services (AWS) growth of 17% lagged behind competitors like Microsoft Azure's (MSFT) 39% and Google Cloud's (GOOGL) 32% expansion rates. Amazon plans to invest over $100 billion in capital expenditures in 2025, primarily for building AI infrastructure, which is expected to pressure near-term profits.
Other notable corporate news includes Eli Lilly (LLY), whose stock plunged 14% despite better-than-expected earnings, due to lackluster trial results for its much-anticipated oral GLP-1 pill. Caterpillar Inc. (CAT) was a drag on the Dow on Thursday, with its shares falling 2.5% after missing earnings estimates and citing tariffs as a major reason impacting its business. Salesforce (CRM) also saw a significant decline of 3.33% on Thursday, while Visa (V) fell 2.25%.
As Friday afternoon trading progresses, the market remains dynamic, with technology and AI-related developments continuing to capture investor attention, alongside ongoing assessments of economic data and policy decisions.
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.