Stock Market Summary – August 08, 2025

As per President Donald Trump’s warning, the block on his tariff policy can have a significant negative impact on the stock market which may lead to severe economic downturn. Inspired by the “positive impact” of the tariff policy on the stock market, Trump continues to argue that the inability to pay back “massive sums of money and honor” in case of blockage could akin to “a GREAT DEPRESSION”.

Higher U.S. Tariffs are currently under investigation due to arguments that they may exceed emergency powers granted to the President by Congress in the 1970s. This comes as a result of Alan Wolff (from the Peterson Institute for International Economics) suggesting in a report that rejection of these levies would lead to a “massive amount of red tape” around which refunds would be earned.

In market news, the Dow Jones Industrial Average increased by more than 1%. The S&P 500 and tech-heavy Nasdaq Composite rallied more than 2% and 3% respectively. Apple stock surged 4%, due to its $100 billion additional investment commitment to U.S. manufacturing going successful. Apple’s success was enabled in part by the avoidance of Trump’s tariffs thanks to CEO Tim Cook’s diplomatic relation with the president.

In contrast, the Eli Lilly stock plunged by 14% due to disappointing data for its obesity pill. However, the stock has since increased by 1.7%. In tech, The Trade Desk shares tumbled almost 40% owing to rising competition from Amazon and the ad-tech company’s announcement of its CFO’s departure. Amazon’s ad business revenue increased 23% to $15.7 billion.

There’s strong buzz in the stock market for a potential stock sale in government-controlled mortgage giants Fannie Mae and Freddie Mac by Trump administration, which values the companies at around $500 billion or more. If this happens, it could be a historically large stock offering depending on the number of shares sold. The current record holder is Alibaba in 2014, which raised nearly $22 billion.

Today’s stock market saw a mixture of winners and losers. Among the largest midday movers were Gilead Sciences, Monster Beverage, MP Materials, Sweetgreen, and several other companies.

Trade Desk shares dropped by 37% after Bank of America and MoffettNathanson downgraded the stock amid warnings of slowing growth. In contrast, shares of Gen Digital rose 9% on strong demand for its cybersecurity products and upbeat revenue and profit forecast. MP Materials also jumped 2% while Live Nation Entertainment’s stock rose 2% due to optimistic perspectives on the summer concert season. Gilead Sciences saw a nearly 9% gain after reporting robust Q2 results. Under Armour stocks, however, tumbled 22% after missing Q1 estimates.

On another note, Goldman Sachs is reportedly expanding its sector focus, particularly on wealth management for affluent clients and institutions. Goldman Sachs has traditionally been involved in investment banking services like underwriting IPOs and M&A advisory. Marc Nachmann, the bank’s global head of asset and wealth management, shared plans to develop this business and gain competitive ground within a less saturated segment of Wall Street.

Apple CEO Tim Cook gifted President Trump an engraved glass disc during a meeting concerning funding for the tech company’s data center expansion. Intel CEO Lip-Bu Tan received a public condemnation from Trump regarding Tan’s alleged conflicts of interest and potential ties to Chinese businesses. This criticism comes amid a decrease in Intel’s sales and Tan was recently brought in to reverse this trend.

Crocs, the company behind the popular foam clog shoes, saw their stocks decrease by 29%, marking its worst trading day in 14 years due to an unexpected year-over-year revenue decline of 9 to 11% for the current quarter.

The overall S&P 500 and Dow Jones Industrial Average were significantly higher, as investors keep an eye on next week’s economic data regarding inflation. Eli Lilly’s stock saw another fall by 2.5% during trading despite positive statements from Wall Street analysts.