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Wall Street closed lower on Friday, pulled down by tech and financial stocks. Investor mood remained subdued on falling chip stocks and weak consumer sentiment numbers. A Fed official remained cautious in his remarks about expected rate cuts. Two of the three benchmark indexes closed in the red, while one remained virtually unchanged.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) remained virtually unchanged, rising less than 0.1%, or 34.86 points, to close at 44,946.12. Seventeen components of the 30-stock index ended in negative territory, while 13 ended in positive.
The tech-heavy Nasdaq Composite fell 87.69 points, or 0.4%, to 21,622.98.
The S&P 500 lost 18.74 points, or 0.3%, to close at 6,449.80. Five of the 11 broad sectors of the benchmark index closed in the red. The Financials Select Sector SPDR (XLF), the Technology Select Sector SPDR (XLK) and the Industrials Select Sector SPDR (XLI) declined 1%, 0.8% and 0.5%, respectively, while the Health Care Select Sector SPDR (XLV) gained 1.7%.
The fear gauge CBOE Volatility Index (VIX) increased 1.8% to 15.09. A total of 16.3 billion shares were traded on Friday, lower than the last 20-session average of 18.2 billion. Decliners outnumbered advancers by a 1.30-to-1 ratio on the NYSE, and by a 1.36-to-1 ratio on the Nasdaq.
Chip Stocks Weigh on the Markets
On Friday, while the broader market awaited the results of the meeting between President Trump and President Putin in Alaska with bated breath, chip stocks ended lower on Wall Street as a mix of corporate and political pressures weighed heavily on the sector. The biggest catalyst was President Donald Trump floating the possibility of raising tariffs on imported semiconductors to as high as 300%. The prospect of such extreme trade barriers rattled investors, as it would disrupt supply chains, inflate costs and dampen global competitiveness for U.S. chipmakers. Shares of AMD, NVIDIA and Broadcom slipped over 1% each, as investors weighed the risks of escalating protectionism on an industry that relies heavily on international production and distribution.
One exception within the sector was Intel Corporation (INTC - Free Report) , which bucked the downward trend and gained nearly 3%. Reports suggested that the company could benefit from increased U.S. government support through CHIPS Act funding, a factor that temporarily insulated it from the wider selloff. Yet, the combination of weak earnings guidance, tariff threats and profit-taking left most chip stocks struggling, making semiconductors one of the day’s weakest corners of the market.
Chicago Fed President Austan Goolsbee left open the possibility of a rate cut in September or later this fall, but urged caution due to recent surges in services and producer inflation, calling them a potential “note of unease” that warrants more reassuring data before the Fed moves forward. His cautious tone, paired with unexpected inflation data, lifted Treasury yields while tempering Wall Street’s rate-cut expectations.
Weekly Roundup
Last week, Wall Street extended gains as all three major indexes advanced. The Dow Jones rose about 1.7%, the S&P 500 added roughly 0.9% and the Nasdaq gained 0.8%. The optimism was fueled by softer inflation data, which reinforced expectations for a potential Fed rate cut in September. A strong batch of corporate earnings further lifted sentiment, showing resilience despite lingering inflationary pressure. Though Friday ended with modest pullbacks, the week overall reflected confidence in economic stability and monetary policy support.
Economic Data
Per a Fed report, Industrial Production for July decreased 0.1% in July after rising 0.4% in June. The number for June was revised up from the previously reported 0.3% increase. Capacity Utilization decreased to 77.5% in July. The number for June was revised up to 77.7% from the previously reported 77.6%.
The U.S. Census Bureau reported that Retail Sales for July had increased 0.5%. The number for June was revised to a 0.9% increase from the previously reported 0.6%. Core retail sales increased 0.3% in July after increasing 0.8% in June.
Per the Census Bureau, Business Inventories for June increased 0.2% after remaining unchanged in May.
A New York Fed report suggested that the NY Empire State Index for August had come in at 11.9, after coming in at 5.5 in July.
Per a preliminary report by the University of Michigan, Consumer Sentiment for August had decreased to 58.6, after coming in at 61.7 in the month prior.
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Stock Market News for Aug 18, 2025
Wall Street closed lower on Friday, pulled down by tech and financial stocks. Investor mood remained subdued on falling chip stocks and weak consumer sentiment numbers. A Fed official remained cautious in his remarks about expected rate cuts. Two of the three benchmark indexes closed in the red, while one remained virtually unchanged.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) remained virtually unchanged, rising less than 0.1%, or 34.86 points, to close at 44,946.12. Seventeen components of the 30-stock index ended in negative territory, while 13 ended in positive.
The tech-heavy Nasdaq Composite fell 87.69 points, or 0.4%, to 21,622.98.
The S&P 500 lost 18.74 points, or 0.3%, to close at 6,449.80. Five of the 11 broad sectors of the benchmark index closed in the red. The Financials Select Sector SPDR (XLF), the Technology Select Sector SPDR (XLK) and the Industrials Select Sector SPDR (XLI) declined 1%, 0.8% and 0.5%, respectively, while the Health Care Select Sector SPDR (XLV) gained 1.7%.
The fear gauge CBOE Volatility Index (VIX) increased 1.8% to 15.09. A total of 16.3 billion shares were traded on Friday, lower than the last 20-session average of 18.2 billion. Decliners outnumbered advancers by a 1.30-to-1 ratio on the NYSE, and by a 1.36-to-1 ratio on the Nasdaq.
Chip Stocks Weigh on the Markets
On Friday, while the broader market awaited the results of the meeting between President Trump and President Putin in Alaska with bated breath, chip stocks ended lower on Wall Street as a mix of corporate and political pressures weighed heavily on the sector. The biggest catalyst was President Donald Trump floating the possibility of raising tariffs on imported semiconductors to as high as 300%. The prospect of such extreme trade barriers rattled investors, as it would disrupt supply chains, inflate costs and dampen global competitiveness for U.S. chipmakers. Shares of AMD, NVIDIA and Broadcom slipped over 1% each, as investors weighed the risks of escalating protectionism on an industry that relies heavily on international production and distribution.
One exception within the sector was Intel Corporation (INTC - Free Report) , which bucked the downward trend and gained nearly 3%. Reports suggested that the company could benefit from increased U.S. government support through CHIPS Act funding, a factor that temporarily insulated it from the wider selloff. Yet, the combination of weak earnings guidance, tariff threats and profit-taking left most chip stocks struggling, making semiconductors one of the day’s weakest corners of the market.
Consequently, shares of Advanced Micro Devices, Inc. (AMD - Free Report) and Broadcom Inc. (AVGO - Free Report) fell 1.9% and 1.6%, respectively. While AMD currently carries a Zacks Rank #3 (Hold), AVGO carries a Zacks Rank of 2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Goolsbee’s Cautious Inflation Warning Tempers Rate-Cut Hopes
Chicago Fed President Austan Goolsbee left open the possibility of a rate cut in September or later this fall, but urged caution due to recent surges in services and producer inflation, calling them a potential “note of unease” that warrants more reassuring data before the Fed moves forward. His cautious tone, paired with unexpected inflation data, lifted Treasury yields while tempering Wall Street’s rate-cut expectations.
Weekly Roundup
Last week, Wall Street extended gains as all three major indexes advanced. The Dow Jones rose about 1.7%, the S&P 500 added roughly 0.9% and the Nasdaq gained 0.8%. The optimism was fueled by softer inflation data, which reinforced expectations for a potential Fed rate cut in September. A strong batch of corporate earnings further lifted sentiment, showing resilience despite lingering inflationary pressure. Though Friday ended with modest pullbacks, the week overall reflected confidence in economic stability and monetary policy support.
Economic Data
Per a Fed report, Industrial Production for July decreased 0.1% in July after rising 0.4% in June. The number for June was revised up from the previously reported 0.3% increase. Capacity Utilization decreased to 77.5% in July. The number for June was revised up to 77.7% from the previously reported 77.6%.
The U.S. Census Bureau reported that Retail Sales for July had increased 0.5%. The number for June was revised to a 0.9% increase from the previously reported 0.6%. Core retail sales increased 0.3% in July after increasing 0.8% in June.
Per the Census Bureau, Business Inventories for June increased 0.2% after remaining unchanged in May.
A New York Fed report suggested that the NY Empire State Index for August had come in at 11.9, after coming in at 5.5 in July.
Per a preliminary report by the University of Michigan, Consumer Sentiment for August had decreased to 58.6, after coming in at 61.7 in the month prior.