Market Recap – Thursday, August 7, 2025
Big Tech gains offset broader market weakness amid rising tariff concerns and bond market pressure
US stocks ended Thursday mostly lower, with the Dow falling 0.5% and the S&P 500 down slightly. The Nasdaq bucked the trend, rising 0.35%, helped by strength in tech stocks like Apple. Small caps also slipped. Despite the dip, major indexes remain on track for weekly gains.
Big tech continued to perform well, while software, pharma, agriculture, and transportation stocks weighed on the broader market. Standouts included semiconductors, consumer staples, and homebuilders. Meanwhile, Treasury yields climbed after another weak bond auction, and crude oil fell for the sixth straight day. Gold and Bitcoin both moved higher.
The market continues to grapple with uncertainty around Trump’s newly implemented global tariffs — now the highest in nearly a century. While chipmakers like Apple and TSMC rallied on news of exemptions, confusion remains about how the tariffs will actually be enforced. Trade policy is now seen as a key risk for investment and hiring decisions going forward.
The Fed also stayed in focus. Reports suggest Governor Chris Waller is emerging as the top pick to replace Jerome Powell as Fed Chair, a shift that could tilt policy more dovish. However, recent weak jobs data and another poor bond auction are fueling concerns about both the economy and the government’s growing debt load. The July CPI report next Tuesday is the next major data release to watch.
On the earnings front, results remain broadly positive, though not all beats are being rewarded. Big gainers included SunRun (+32%), Dutch Bros (+22%), and Celsius (+17%), while steep losses were seen in Crocs (–29%), Fortinet (–22%), and Eli Lilly (–14%) due to mixed results or guidance disappointments.
Here’s Our Take
Markets remain resilient but increasingly skittish as macro and policy risks grow. Positive tech momentum and strong Q2 earnings are being partially offset by concerns around tariffs, softening labor market data, and rising Treasury yields. The Fed’s leadership transition and the July inflation report will be key in shaping investor expectations over the next few weeks. While the rally has legs, rising uncertainty suggests a bumpier road ahead — making selectivity and a balanced approach more important than ever.
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