U.S. equities experienced a mixed close on Thursday, August 7, 2025, as investors grappled with the implementation of new U.S. tariffs and continued to weigh hopes for future Federal Reserve interest rate cuts against mixed economic data. While major indexes saw fluctuating performance throughout the day, the session concluded with the S&P 500 and Dow Jones Industrial Average posting modest declines, while the Nasdaq Composite managed to eke out a gain, reaching a new all-time closing record.
Major Market Indexes Performance
The S&P 500 (SPX) edged down by 0.1% to close at 6328 points, after climbing earlier in the day to the edge of its record, set late last month. The index had been less than 1% away from a record closing high following a winning session on Wednesday. The Dow Jones Industrial Average (DJIA) was down 0.7% at the close, reflecting broader market cautiousness. Conversely, the tech-heavy Nasdaq Composite (IXIC) showed resilience, gaining 0.4% and closing at a new all-time high of 21,242.70. This marks a significant milestone for the Nasdaq, which has seen a rapid ascent since hitting a bottom in April, leading to some criticism about its valuation.
The market's mixed reaction came despite President Donald Trump's latest tariffs taking effect on dozens of countries, including an additional 25% duty on Indian goods, effectively doubling the total tariff to 50% for certain imports. There were also reports of a proposed 100% levy on semiconductor companies that do not build in the United States, though with significant exemptions for firms with U.S. production. Despite these trade tensions, optimism about potential Federal Reserve interest rate cuts, fueled by last week's weaker-than-expected job market report, helped to offset concerns and stabilize markets. The Bank of England also cut its main interest rate on Thursday, signaling a global trend towards monetary easing to bolster sluggish economies.
Upcoming Market Events
Looking ahead, investors will be closely monitoring a series of economic data releases and policy decisions. The Federal Reserve's stance on interest rates remains a key focus, with market expectations for a rate cut next month currently at 93%, significantly up from 38% a week ago. Upcoming economic data in August 2025 includes the release of the ISM Services Business Activity on August 5th, and crucial inflation data with the CPI ex-Food & Energy NSA Y/Y on August 12th, and PPI ex-Food & Energy NSA Y/Y on August 14th. The FOMC Minutes are also slated for release on August 20th, which will provide further insights into the central bank's thinking. Other notable releases include Productivity & Costs (Preliminary) and Wholesale Trade data on August 7th, and Survey of Consumer Expectations on the same day. The Jackson Hole Symposium later in August will also be a significant event for market watchers.
Major Stock News and Developments
Several major companies made headlines today with their corporate announcements and stock movements:
Apple (AAPL) saw its shares jump 3%, adding to yesterday's 5% surge, after CEO Tim Cook and President Trump announced that the iPhone maker would invest an additional $100 billion in U.S. manufacturing. This commitment follows previous investments and aims to mitigate the impact of tariffs.
Eli Lilly (LLY) experienced a significant plunge, with shares falling 13% after disappointing results from a trial of its oral weight-loss drug overshadowed an otherwise better-than-expected earnings report and boosted outlook. Despite reporting a 38% year-over-year revenue increase to $15.56 billion in Q2 2025, driven by strong sales of Zepbound and Mounjaro, and raising its full-year revenue guidance, the market reacted negatively to the drug trial news.
Intel (INTC) shares fell about 2% after President Donald Trump called for the resignation of new CEO Lip-Bu Tan, citing concerns over his alleged ties to Chinese companies. This comes amidst broader discussions about semiconductor tariffs.
In positive news, Duolingo (DUOL) shares soared nearly 25% in premarket trading after the language learning app reported strong second-quarter results, with earnings per share of $0.91 on revenue that jumped 41% year-over-year to $252.3 million, and raised its full-year outlook.
DoorDash (DASH) also saw its stock surge after setting several quarterly records, indicating robust performance in the food-delivery sector.
Other companies reporting earnings today included Block (SQ), Take-Two Interactive (TTWO), Sight Sciences (SGHT), Relmada Therapeutics (RLMD), Arhaus (ARHS), Warner Bros. Discovery (WBD), Walker & Dunlop (WD), Vistra (VST), Sempra (SRE), Intellia Therapeutics (NTLA), Marcus & Millichap (MMI), Maximus (MMS), Cheniere Energy (LNG), Martin Marietta Materials (MLM), mF International (MFI), Lifetime Brands (LCUT), KeyCorp (KEY), Hertz Global Holdings (HTZ), Vital Farms (VITL), US Foods Hldg (USFD), UWM Holdings (UWMC), Targa Resources (TRGP), Millicom Intl Cellular (TIGO, Zimmer Biomet Holdings, Inc. (ZBH), and Becton, Dickinson and Company (BDX). Zimmer Biomet reported a 7.0% increase in net sales for Q2 2025 and tightened its full-year revenue guidance while increasing adjusted earnings per share guidance. BD also announced strong Q3 fiscal 2025 results, with revenue increasing 10.4% and raised its full-year adjusted diluted EPS guidance.
In the cryptocurrency market, Bitcoin (BTCUSD) saw its price jump, trading at around $116,600, contributing to gains in crypto-related stocks like MicroStrategy (MSTR) and Coinbase Global (COIN).
The day's trading underscored the ongoing tension between geopolitical trade policies and underlying corporate performance, with investors closely watching for signs of economic stability and future monetary policy shifts.
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.