The U.S. stock market opened with a mixed performance on Friday, August 8, 2025, as investors weighed ongoing trade tensions and looked ahead to crucial economic data releases next week. While major indexes showed varied movements at the open, the underlying sentiment remains a complex interplay of corporate earnings, Federal Reserve policy expectations, and the impact of new tariffs.
Market Indexes: A Cautious Start
As trading commenced this morning, U.S. stock futures indicated a generally higher open, building on recent momentum. S&P 500 futures were up 0.3%, while Dow Jones Industrial Average futures gained 0.1% to 0.2%, and Nasdaq 100 futures saw a rise of 0.2% to 0.23%. This follows a mixed close on Thursday, August 7th, where the S&P 500 edged down 0.1% (or 0.08%), and the Dow Jones Industrial Average (DJIA) dipped 0.5% (or 224 points). In contrast, the Nasdaq Composite (IXIC) continued its impressive run, rising 0.3% (or 0.35%) to set another record high.
The Nasdaq's resilience is notable, having achieved 17 all-time closing highs so far in 2025, with the S&P 500 (SPX) also hitting 15 record closes this year. Year-to-date, the tech-heavy Nasdaq is up 10%, outperforming the S&P 500's 7.8% gain and the Dow's 3.4% increase, reflecting a continued investor preference for growth and technology sectors.
Upcoming Market Events: Inflation and Fed Focus
The market's attention is already shifting to next week's economic calendar, with inflation data taking center stage. The highly anticipated U.S. Consumer Price Index (CPI) data for July is scheduled for release on Tuesday, August 12th. This report will be closely scrutinized for signs of rising inflation, particularly in light of recent tariff developments. Further economic indicators expected next week include the Producer Price Index (PPI) on August 14th, and U.S. Retail Sales (MoM) and the Michigan Consumer Sentiment Index on Friday, August 15th.
Monetary policy remains a dominant theme, with the Federal Reserve's next moves heavily influencing market sentiment. The Fed kept its benchmark interest rate steady at 4.25-4.50% in July, but internal dissent within the Federal Open Market Committee (FOMC) has fueled expectations of potential easing. Traders are currently pricing in a significant probability, ranging from 60% to over 90%, of a 25-basis-point rate cut by the Fed in September, a sentiment bolstered by recent softening labor market data, including an increase in weekly jobless claims to 226,000. Adding to the complexity, President Donald Trump's nomination of Stephen Miran to the Federal Reserve board is seen as an attempt to exert more influence over the central bank's monetary policy, given Miran's past support for Trump's tariff policies and his downplaying of their inflationary impact.
Major Stock News and Corporate Developments
Several major companies are making headlines today, impacting individual stock performances:
Eli Lilly and Company (LLY) saw its stock drop after data from its oral weight loss drug disappointed, despite the pharmaceutical giant reporting strong second-quarter 2025 financial results on August 7th. The company announced a 38% year-over-year revenue increase, driven by robust sales of its popular drugs Zepbound and Mounjaro, and subsequently raised its full-year guidance.
Intel Corporation (INTC) experienced a 3.1% decline in its stock price after President Trump publicly called for the immediate resignation of its new CEO, Lip-Bu Tan, citing alleged "highly conflicted" ties to Chinese firms. This comes amidst broader discussions about the impact of tariffs on the semiconductor industry.
In contrast, Apple Inc. (AAPL) shares rose 3.2% as the company appeared largely exempt from President Trump's latest tariff threats, particularly the proposed 100% levy on chips and semiconductors, provided companies manufacture domestically or commit to doing so. Apple CEO Tim Cook further bolstered investor confidence by announcing an additional $100 billion investment in U.S. manufacturing over the next four years.
Other companies seeing significant movements include Expedia Group, Inc. (EXPE) and Gilead Sciences, Inc. (GILD), both of which rose sharply after reporting earnings that comfortably beat analysts' forecasts and raising their outlooks. Language-learning app Duolingo, Inc. (DUOL) also jumped 13.7% following strong second-quarter results, with subscription revenue surging 46%.
In the tech and payments sectors, SoundHound AI, Inc. (SOUN) saw its stock jump 14% in extended trading after reporting its strongest quarter ever. Similarly, Block, Inc. (SQ), the payments firm, saw its stock rise 8% after announcing strong gross profit growth in Q2. However, Pinterest, Inc. (PINS) faced a downturn, with its stock falling 10% after delivering mixed second-quarter financial results.
The broader market continues to grapple with the implications of new U.S. tariffs, which have been imposed on imports from various countries, including India, and have sparked concerns about a potential global trade war. Despite these headwinds, hopes for Federal Reserve rate cuts and a string of stronger-than-expected corporate earnings reports are currently helping to offset some of the economic uncertainties, keeping Wall Street in a dynamic state.
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.