Stock Market Summary – August 20, 2025

Palantir’s stock slides 20% into the longest losing streak since April 2024, bringing shares down 18% from recent highs. The stock drop follows a broader market sell-off and a short seller report from Citron Research declaring the company overvalued.

Market rotation is ongoing, with technology, high-multiple, and momentum stocks showing a downward trend. Shares of Broadcom, Apple, and Amazon performed worst on Wednesday, with TJX Companies, Palo Alto Networks, and Costco among the best performers. Honeywell announced the acquisition of three utility platforms from SparkMeter, signaling a move towards boosting growth before becoming an independent company.

Within the Federal Reserve, debates ensue on the state of the labor market and the potential threat of inflation. Governors Christopher Waller and Michelle Bowman have voted against the decision to hold rates steady, favoring a cut instead. The central bank’s key rate remains targeted between 4.25%-4.5%. Outside factors such as tariffs and job losses have been discussed as potential influences on future inflation and employment numbers.

Speculation about the future of the Federal Reserve has been high as the central bank’s annual symposium at Jackson Hole, Wyoming, begins. Serving through 2028, Fed Chair Jerome Powell is expected to indicate short-term and long-term policy directions. Michael Fiddelke is named as the next CEO of Target, beginning his term in February following Brian Cornell.

The tech market is struggling, with the Nasdaq Composite falling nearly 1.5% as cryptocurrencies also drop. This marks a tough turn for megacap tech stocks, including the “Magnificent Seven” index of tech giants which all reported losses. The US President expands his 50% tariffs on steel and aluminum to include more products, increasing the levies’ scope and impact.

Finally, robotics startup Field AI, backed by Bill Gates and Nvidia, raises $405 million in funding, hitting a valuation of $2 billion. Investors include Jeff Bezos’ family office and Nvidia’s venture capital arm.

Stocks witnessed significant premarket moves with companies like Target, Lowe’s, and Snowflake particularly mentioned. Target’s shares sank by 10.5% following the announcement of the replacement of CEO Brian Cornell with Chief Operating Officer Michael Fiddelke. In contrast, shares for Lowe’s increased by 3% after latest financial results exceeded expectations. Shares of Estée Lauder fell by 8% due to tariff-related profitability issues, while Hertz’s stocks jumped 9% following an announcement that it would start selling pre-owned vehicles on Amazon Autos.

U.S. President Donald Trump has bought over $100 million in bonds across local authorities, gas districts and major corporations since taking office. These purchases, outlined in documents filed with the U.S. Office of Government Ethics, involve large corporations such as T-Mobile U.S., United Health and Home Depot.

Financial services company, Jefferies, suggested investing in stocks with a market cap of over $10 billion that have consistently beat earnings estimates over the past four quarters, citing Microsoft and Apple as potentially viable options. Johnson & Johnson was also listed, with shares of the healthcare company soaring nearly 23% this year.

Intel is reportedly in talks with large investors to receive an equity infusion at a discounted price after its stocks slid nearly 7% on Wednesday, primarily due to an announcement of a $2 billion capital injection from SoftBank and reports of potential government involvement with the company.

Various analyst calls were made, notable among which were upgrades by JPMorgan of Upstart Holdings to overweight, and by Bank of America of Snowflake to buy. Additionally, Citi downgraded Gap to neutral, citing tariff pressures as a significant factor.
However, the Dow, S&P, and Nasdaq numbers along with details on main gainers and losers for the day were not provided in the news articles.