Stock Market Wrap – August 20, 2025

Stocks had a mixed day on Wednesday. Investors looked at uneven corporate earnings. They also prepared for important Federal Reserve minutes and speeches at this week’s Jackson Hole symposium.

The Dow Jones Industrial Average gained 10.45 points, closing at 44,922.27. The S&P 500 fell 0.6% to 6,411.37. The Nasdaq Composite dropped 1.5% to 21,314.95 due to a tech-led selloff.

Tech Shares Lead Losses

Investor caution before Fed Chair Jerome Powell’s remarks on Friday led to a drop in high-growth tech stocks. The Nasdaq-100 decreased by 1.5%. This is the largest drop in a single day since early August. Concerns about high AI-driven valuations are rising. NVIDIA and Meta both fell over 1%. Palantir dropped 9.4% due to new doubts about AI profitability.

Retail Earnings Highlight Divergent Results

Mixed results among major retailers offered further headwinds and tailwinds:

Target’s stock dropped 10%. This came after a 1.9% fall in comparable sales. They also announced COO Michael Fiddelke as the new CEO.
Lowe’s shares climbed over 3% after posting strong profits and raising its sales forecast. This gain was fueled by the $8.8 billion acquisition of Foundation Building Materials.
TJX Companies and Home Depot both had strong quarterly results. Their shares rose by 7% and 3%, respectively. Walmart is set to report on Thursday.

Looking Ahead

All attention is on the release of the July FOMC minutes today. Mr. Powell’s keynote address on Friday is also important. Together, they may reveal new details about the Fed’s rate path amid ongoing inflation and a strong job market.

Reuters, Zacks, TheStreet, TradingEconomics -