After a powerful rally on Monday, August 4, market breadth moderated slightly on Tuesday, August 5. While short-term participation dipped, there was no major deterioration in medium- or long-term trends. The market remains in a holding pattern with signs of underlying strength.
A strategist said he favors growth over value, large caps over small caps, and the communication services and financials sectors as the market navigates through tariff headwinds.
Investors have pulled out a record $80 billion from small-cap stocks so far in 2025, setting the stage for what could be the largest annual outflow in the history of this segment.
Stocks slipped Tuesday as fresh economic data reignited stagflation fears on Wall Street, overshadowing a blowout quarter from Palantir Technologies Inc.
After a week of deteriorating breadth, August 4, 2025, delivered a decisive reversal as over 80% of stocks advanced, with strong participation across key moving averages.
President Donald Trump’s tariffs continue to remain an overhang, with the market eyeing the Aug. 7 timeline when the revised tariff rates announced last week would take effect.
It's a rough start to the new month for Wall Street, as major U.S. stock indices plunged by midday Friday, setting the stage for a negative weekly close.
On Thursday, stocks succumbed to concerns about tariffs and macroeconomic worries, which offset the optimism generated by solid quarterly results from Meta and Microsoft.
Applied Digital’s Q4 revenue jumped 41% year-on-year to $38 million, beating the analysts’ consensus estimate of $37.12 million, as per Fiscal AI data.
On Wednesday, the major averages closed on a mixed note, as traders were left unimpressed by the Fed's decision and Chair Powell’s comments at the press conference that followed the meeting.
Federal Reserve Chair Jerome Powell held firm on monetary policy, calling the central bank's current stance “modestly restrictive” and reiterating that no decision has been made about a rate cut in September.
Risk appetite took a breather Tuesday, with major U.S. stock indices retreating modestly from record highs as investors braced for a pivotal stretch of earnings and macro events.
In the upcoming session, the spotlight is likely to be on the Federal Open Market Committee meeting that gets underway, the results of the Job Openings And Labor Turnover Survey, and the Conference Board’s July consumer confidence data.
Wall Street opened the week slightly higher, led by gains in energy stocks, while the U.S. dollar posted its strongest performance in over two months, as markets reacted to the U.S.-EU trade deal struck over the weekend.
The week’s economic news flow is headlined by key catalysts, including the Federal Reserve rate-setting meeting, July non-farm payrolls report, and the June personal income and spending report.
