The U.S. stock market concluded Thursday, August 7, 2025, with a mixed performance, as investors weighed the immediate impact of new tariffs against persistent hopes for Federal Reserve interest rate cuts and a wave of stronger-than-expected corporate earnings reports. While the tech-heavy Nasdaq Composite (IXIC) soared to a new record high, the broader S&P 500 (SPX) and the Dow Jones Industrial Average (DJIA) finished slightly lower, reflecting ongoing uncertainty in the global trade landscape.
Major Market Indexes Recap
The trading day saw Wall Street grappling with President Donald Trump's latest tariffs, which officially took effect on dozens of countries. Despite initial concerns, the market's reaction was relatively muted, with some sectors showing resilience. The S&P 500 (SPX) edged down 5.06 points, or 0.1%, to close at 6,340.00. This slight dip came after the index had briefly touched the cusp of its all-time record high earlier in the morning session.
The Dow Jones Industrial Average (DJIA) experienced a more significant decline, shedding 224.48 points, or 0.5%, to settle at 43,968.64. This marked a retreat from its earlier gains. In contrast, the Nasdaq Composite (IXIC) proved to be the day's standout performer, rallying in the final hour of trading to close at a record high of 21,242.70, up 73.27 points or 0.3%. The Russell 2000 (RUT) index, representing smaller companies, also saw a modest decline, falling 6.57 points, or 0.3%, to 2,214.72.
The mixed finish underscored the prevailing sentiment on Wall Street: a cautious optimism tempered by geopolitical and economic concerns. Hopes for upcoming interest rate cuts by the Federal Reserve, bolstered by last week's weaker-than-expected job market report, continued to provide a floor for market sentiment.
Key Stock News and Corporate Announcements
Several major companies made headlines today with their earnings reports and corporate developments, driving significant stock movements.
Technology and semiconductor stocks were particularly active following President Trump's announcement of a 100% tariff on imported semiconductor chips, coupled with crucial exemptions for companies manufacturing chips in the U.S. This policy shift positively impacted chipmakers like Nvidia (NVDA) and Advanced Micro Devices (AMD), with Goldman Sachs notably raising its price target for Nvidia (NVDA) to $200 from $185, maintaining a "buy" rating. Conversely, Intel (INTC) shares slipped after President Trump publicly called for the resignation of its CEO, Lip-Bu Tan, citing alleged conflicts of interest with Chinese companies.
Apple (AAPL) also saw a pre-market boost, rising approximately 2.6% after announcing a substantial commitment to invest an additional $100 billion in U.S. companies and suppliers over the next four years. This new pledge builds upon an earlier $500 billion commitment, signaling a significant push towards domestic manufacturing.
In the earnings spotlight, Eli Lilly (LLY) experienced a notable drop of 14.7% despite reporting stronger-than-expected profits for its latest quarter. The decline was attributed to disappointing results from its oral weight-loss drug, orforglipron, where approximately 10% of patients discontinued treatment due to side effects in a Phase 3 trial.
On the brighter side, Duolingo (DUOL) soared by 28.9% after the language-learning platform significantly surpassed Wall Street's profit and revenue expectations. The company reported a robust 46% growth in subscription revenue and a 41% increase in total bookings, leading to a raised full-year outlook. DoorDash (DASH) also climbed 4.8% as the delivery app exceeded profit expectations, driven by new customer acquisition and an increase in total orders.
However, not all positive earnings were met with market enthusiasm. Warner Bros. Discovery (WBD) reported a surprise profit of $0.63 per share for its second quarter, outperforming analyst forecasts that predicted a loss. Despite the strong beat, the stock curiously declined by more than 6%. Similarly, footwear maker Crocs (CROX) tumbled 27.1% even after reporting a stronger second-quarter profit than analysts anticipated. The company cited "continued uncertainty from evolving global trade policy and related pressures around the consumer," projecting a revenue decline of up to 11% in the current quarter due to tariff impacts on profitability.
Other companies reporting today included Baker Hughes (BKR), which announced the completion of its $540 million acquisition of Continental Disc Corporation, a move expected to be immediately accretive to earnings and cash flow. Peloton Interactive (PTON) released its fourth-quarter and fiscal year 2025 financial results, while BD (Becton, Dickinson and Company) (BDX) reported strong third-quarter fiscal 2025 results, raising its full-year adjusted diluted EPS guidance. Zimmer Biomet Holdings (ZBH) also delivered solid second-quarter 2025 results, with increased net sales and adjusted EPS guidance. In the AI infrastructure space, Nebius Group N.V. (NBIS) announced exceptional second-quarter 2025 results, with revenue surging 625% year-on-year and a raised annualized run-rate revenue (ARR) guidance for 2025 to $900 million to $1.1 billion.
Upcoming Market Events
Looking ahead, investors will closely monitor several key events that could significantly influence market direction.
The Federal Reserve remains a central focus, with growing expectations for interest rate cuts. Following the July 30, 2025, Federal Open Market Committee (FOMC) meeting, two dissenting votes for an immediate 25-basis-point rate cut underscored the internal debate within the central bank. Market participants are now pricing in a high probability (91.2%) of a September rate cut, especially after last week's weaker job report. The next FOMC meeting associated with a Summary of Economic Projections is scheduled for September 16-17, 2025.
On the economic data front, the coming days and weeks will bring several important releases:
- Friday, August 8, 2025: Canada's Employment Report.
- Tuesday, August 12, 2025: U.S. Consumer Price Index (CPI) and Treasury Statement.
- Thursday, August 14, 2025: U.S. Producer Price Index (PPI).
- Friday, August 15, 2025: U.S. Retail Sales, Empire State Manufacturing Index, Industrial Production, and Business Inventories.
These economic indicators will provide crucial insights into inflation trends, consumer spending, and manufacturing activity, all of which could influence the Federal Reserve's policy decisions.
In terms of upcoming corporate earnings, Salesforce (CRM) is slated to release its second-quarter fiscal 2026 results after market close on Wednesday, September 3, 2025. Nvidia (NVDA) is also expected to report its fiscal second-quarter results towards the end of August.
Geopolitical developments also remain on the radar, with optimism rising for a potential truce between Moscow and Kyiv as President Trump and Vladimir Putin are reportedly set to meet soon. These broader global events, alongside domestic economic data and corporate performance, will continue to shape the narrative for the U.S. stock market in the weeks to come.
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.