U.S. equity markets concluded Thursday, August 21, 2025, largely in negative territory, extending a cautious trend as investors digested a mixed bag of corporate earnings and braced for key economic insights from the Federal Reserve's annual Jackson Hole Economic Policy Symposium. The benchmark S&P 500 (SPX) marked its fifth consecutive session of modest losses, a streak not seen since early January, while the Dow Jones Industrial Average (DJI) and Nasdaq Composite (IXIC) also finished lower.
Market Index Performance
As the trading day drew to a close, the S&P 500 (SPX) dipped approximately 0.3% to 0.4%, continuing its retreat from the all-time high set just last week. The Dow Jones Industrial Average (DJI) also faced headwinds, closing down around 0.4% to 0.5%, translating to a loss of roughly 195 to 236 points. Meanwhile, the tech-heavy Nasdaq Composite (IXIC) saw a decline of about 0.1% to 0.4%, reflecting ongoing pressure on growth stocks. This broad market weakness was largely attributed to a cautious sentiment driven by corporate earnings misses and anticipation surrounding central bank policy.
Major Stock News and Movers
A significant drag on the market today was Walmart (WMT), whose shares plummeted between 4% and 5% after the retail giant reported weaker-than-expected profit for its spring quarter. Despite delivering encouraging revenue growth and raising its full-year profit forecast, analysts noted that market expectations were exceptionally high coming into the report, leading to the sharp sell-off. Walmart's performance capped a busy week of retail earnings, with investors closely monitoring shifts in consumer spending patterns.
Another notable decliner was beauty products company Coty (COTY), which saw its stock tumble by over 20% following a surprise loss for the latest quarter. Analysts had anticipated a slight profit, but the company cited uncertainty related to tariffs and the broader economy as factors making retailers cautious in their orders.
In the technology sector, the "AI boom" poster child, Nvidia (NVDA), experienced a slight slip of 0.2% to 0.4%, holding relatively steadier after two days of more significant swings. Other major tech players also faced pressure, with Amazon (AMZN), Meta Platforms (META), Broadcom (AVGO), Apple (AAPL), and Tesla (TSLA) all losing ground. Conversely, Microsoft (MSFT) and Alphabet (GOOGL) managed to tick higher. Palantir Technologies (PLTR) also saw a modest slip of 0.2% to 0.4%, stabilizing after a six-day losing streak.
On the brighter side, Nordson (NDSN) surged by 5.4% to 7.4% after the company reported stronger-than-expected profit and revenue for its latest quarter and announced a new $500 million share buyback program. Hewlett Packard Enterprise (HPE) also saw gains, rising about 3% following an upgrade from Morgan Stanley, which highlighted increased corporate spending on AI and other products. Chinese electric vehicle maker XPeng (XPEV) jumped 10% after its Chairman and CEO increased his stake, signaling confidence in the company's future.
After the market close, Workday Inc. (WDAY) was scheduled to host a conference call to discuss its Q2 2026 earnings results, which were reported after the closing bell. These post-market announcements will be closely watched by investors for their potential impact on Friday's trading.
Upcoming Market Events and Economic Data
The overarching theme for the markets this week, and heading into tomorrow, is the Federal Reserve's annual Jackson Hole Economic Policy Symposium, which commenced today. While several Fed officials spoke on Thursday, the market's primary focus remains on the highly anticipated speech by Federal Reserve Chair Jerome Powell, slated for tomorrow, Friday, August 22. Investors will be dissecting Powell's remarks for any clues regarding the outlook for the economy and the trajectory of interest rates, particularly as expectations for a September rate cut remain high among Wall Street traders.
Economic data released today also contributed to the cautious sentiment. Reports indicated an increase in U.S. workers applying for unemployment benefits last week, suggesting a potential rise in layoffs. Additionally, manufacturing activity in the mid-Atlantic region unexpectedly contracted. These weaker-than-expected economic indicators, coupled with a rise in Treasury yields (the 10-year Treasury yield climbed to 4.33% and the two-year Treasury yield rose to 3.79%), have led some to scale back hopes for imminent interest rate cuts, with some data even historically aligning with a potential rate hike.
Looking ahead to next week, key economic data releases include the U.S. Core PCE Price Index, the Federal Reserve's preferred gauge of inflation, and the second estimate for Q2 U.S. GDP. These reports will provide further insights into the health of the economy and could influence the Federal Reserve's future monetary policy decisions. The minutes from the Fed's July meeting, released on Wednesday, already indicated that while progress has been made on inflation, concerns linger over the uncertain impact of tariffs and the risk of persistent inflationary pressures, tempering expectations for swift monetary easing.
Overall, Thursday's trading reflected a market grappling with mixed corporate performance, evolving economic data, and the looming presence of central bank policy discussions, setting the stage for a potentially volatile end to the trading week.
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.