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Stock Market News for Aug 19, 2025

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Wall Street closed flat on Monday, pulled down by energy and real estate stocks. Investor mood remained muted and cautious as they eagerly await Fed Chair Jerome Powell’s comments at the Jackson Hole symposium. All three benchmark indexes closed virtually flat.

How Did the Benchmarks Perform?

The Dow Jones Industrial Average (DJI) remained virtually unchanged, falling less than 0.1%, or 34.30 points, to close at 44,911.82. Fourteen components of the 30-stock index ended in negative territory, while 16 ended in positive.

The tech-heavy Nasdaq Composite gained 6.80 points, remaining virtually unchanged at 21,629.77.

The S&P 500 lost 0.65 points, remaining flat at 6,449.15. Seven of the 11 broad sectors of the benchmark index closed in the red. The Real Estate Select Sector SPDR (XLRE), the Communication Services Select Sector SPDR (XLC) and the Energy Select Sector SPDR (XLE) declined 0.9%, 0.6% and 0.6%, respectively, while the Consumer Discretionary Select Sector SPDR (XLY) gained 0.4%.

The fear gauge CBOE Volatility Index (VIX) decreased 0.7% to 14.99. Advancers outnumbered decliners by a 1.16-to-1 ratio on the NYSE.

Markets Await Powell’s Speech at Jackson Hole

Investors are closely watching the Fed’s annual Jackson Hole symposium, which begins later this week, for fresh guidance on the central bank’s monetary policy path. The gathering often serves as a platform for Fed officials to signal future policy shifts, and this year the spotlight is squarely on Chair Jerome Powell’s speech. Markets expect Powell to reinforce the Fed’s commitment to a cautious and data-dependent approach as inflation continues to moderate but remains above target. While recent consumer price data show progress, policymakers remain wary of declaring victory too soon, and the symposium could clarify whether rate cuts are likely before year-end or if the Fed intends to wait longer to ensure inflation is firmly on track toward the 2% target. Investors are particularly sensitive to any indication that Powell might lean hawkish, warning against premature easing, or conversely, if he signals confidence that conditions are aligning for policy relaxation.

Ahead of the event, Wall Street displayed a tentative mood on Monday, with major indexes fluctuating as traders weighed the potential implications of the Fed’s message. Investors largely refrained from making aggressive bets, preferring to stay defensive until Powell provides clarity. Bond yields ticked higher, reflecting some caution that the Fed may not be as dovish as markets hope, while rate-sensitive sectors like technology faced selling pressure. At the same time, modest gains in defensive shares suggested a rotation toward safety. Overall, sentiment remained cautious but not deeply negative, as market participants recognized that the symposium could set the tone for the next leg of monetary policy and market direction. The wait-and-see stance underscored how pivotal the Fed’s messaging remains in shaping expectations for growth, inflation and interest rates going into the final months of the year.

Consequently, shares of SBA Communications Corporation (SBAC - Free Report) and Coterra Energy Inc. (CTRA - Free Report) fell 2.2% and 3.3%, respectively. Both currently carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Trump-Zelenskyy Meeting Helps Allay Investor Concerns

The Trump-Zelenskyy meeting on Monday added a note of cautious optimism to Wall Street, with investors interpreting the dialogue as a step toward easing geopolitical risks tied to the war in Ukraine. While the meeting did not produce concrete policy changes, the constructive tone reduced immediate fears of escalating conflict, helping stabilize sentiment. U.S. equities saw modest support, particularly in cyclical and industrial stocks linked to global trade. However, gains were restrained as traders remained focused on the Fed’s upcoming Jackson Hole symposium for clearer signals on monetary policy.

No economic data was released on Monday.


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