US Stocks Experience Mixed Performance Amid Tech Weakness and Upcoming Retail Earnings

Market Overview

On August 19, 2025, U.S. stocks exhibited mixed results as investors grappled with weakness in the Big Tech sector while anticipating key retail earnings reports. The Dow Jones Industrial Average ( ^DJI ) remained just above the flat line, closing slightly up, while the S&P 500 ( ^GSPC ) experienced a drop of around 0.6%. The Nasdaq Composite ( ^IXIC ) faced a sharper decline of approximately 1.5%, continuing its muted start to the week.

The downturn in the tech-heavy index was primarily driven by notable losses in major technology stocks. Palantir ( PLTR ) saw a staggering plunge of 9%, and AMD ( AMD ) followed with a more than 5% decline. Additionally, chip giant Nvidia ( NVDA ) lost about 3.5%. These losses reflect ongoing volatility in the semiconductor and AI-driven sectors.

Sector Rotation Trends

While losses were pronounced in the tech sector, market observations indicate a potential shift in leadership, with more economically sensitive sectors gaining traction. The Health Care ( XLV ), Homebuilders ( XHB ), and small- and mid-cap stocks have begun to play a more prominent role, contributing to this summer's robust market performance. Notably, defensive sectors such as Real Estate ( XLRE ) and Consumer Staples ( XLP ) marked significant gains, illustrating the market's inclination towards safety amid uncertainty.

Retail Earnings and Consumer Sentiment

Retail earnings reports are set to dominate the week, with Home Depot ( HD ) posting its second-quarter results on Tuesday. While the company slightly missed Wall Street's estimates, it still managed to close up 3% after demonstrating a return to consistent same-store sales growth in the U.S. Signs that the housing market is starting to improve could bolster consumer confidence moving forward. Earnings from Target ( TGT ) on Wednesday and Walmart ( WMT ) on Thursday are also anticipated, which will provide further insights into consumer sentiment and spending trends amidst the current economic landscape.

Geopolitical Developments and Market Impact

Geopolitical issues are another factor influencing market sentiment. President Trump has reportedly urged further discussions on the Ukraine conflict, adding another layer of uncertainty to market movements. This has led investors to adopt a cautious stance, particularly as they await Fed Chair Jerome Powell's important speech at the Jackson Hole symposium later this week, which could significantly influence the monetary policy outlook.

Tech Developments and Corporate News

In the tech sector, Intel ( INTC ) shares experienced a notable uptick as SoftBank announced a $2 billion investment in the chipmaker, providing much-needed support amid its ongoing turnaround efforts. This news, coupled with reports that the Trump administration is considering a 10% stake in Intel, has rallied investor interest. Meanwhile, Viking Therapeutics ( VKTX ) stock plummeted 35% following disappointing results from a phase 2 trial of its weight-loss drug, highlighting the risks associated with biotech investments.

As the market heads into a crucial week filled with earnings announcements and geopolitical discussions, investors are advised to remain vigilant, keeping an eye on both sector rotations and the broader economic indicators that could influence market trajectories.