Stock Market Summary – August 21, 2025

Despite some bright spots in pharma stocks, the S&P 500 is heading for a fifth day of declines. UnitedHealth Group saw a surge following news that Berkshire Hathaway bought a stake in the managed care giant, giving healthcare sector a lift. European Union-United States trade agreement changes mean branded pharmaceuticals from the EU will face a 15% tariff rate, lessening previous concerns over Section 232 sectoral tariffs. Stocks of Bristol Myers Squibb and Eli Lilly are noted as gainers as investors digest the tariff developments.

On the negative side, shares of Cracker Barrel Old Country Store plummeted roughly 10% following the company’s new logo and larger brand refresh. The announcement has led to significant backlash on social media, particularly from conservative circles.

The performance of the S&P 500, which rallied more than 8% in 2025, is being skewed by the dominance of megacap technology names such as Nvidia, Microsoft, and Meta Platforms, making up about one-third of the benchmark’s total market valuation. This concentration is diluting the S&P 500’s capabilities as a leading economic indicator. The majority of S&P 500 members remain below their 50-day moving averages, a short-term momentum indicator, despite the benchmark trading near record levels.

Lastly, the new ESPN streaming service by Disney aims to increase profits, though some investors have taken issue with the company’s decision not to disclose subscriber numbers for the new service. Disney CEO Bob Iger made it clear that the company would rather focus on long-term financial success. The streaming service, providing access to all of ESPN’s channels along with some additional personalization features, costs $29.99 a month.

Jefferies analysts pointed out companies with high buyback yields in the S&P 500, which is up more than 8% in 2025. Major firms like Apple and Uber have major buyback plans, with the former looking to repurchase $100 billion of its shares, while the latter plans to buy back $20 billion of its own shares. UnitedHealth placed into Goldman Sachs’ “Hedge Fund VIP” basket, which has outperformed the S&P 500 with a 15% gain this year. Other new additions to the list include Skechers USA, Insmed, SharkNinja, and Advanced Micro Devices.

In midday trading updates, the beauty retailer Coty shares dropped more than 20% after results showed a per-share earnings loss of 5 cents, which was worse than the 2 cents analysts expected. Paramount Skydance’s shares rose 15%, Chinese electric car company Xpeng’s US shares also increased by over 14%, but Walmart’s stocks fell by over 4% even after beating revenue estimates.

Market analyst LPL Financial noted a market divergence that could spell potential trouble for Wall Street. Approximately 65% of stocks in the S&P 500 are trading above their 200-day moving average, which is less than the 74% average seen when the benchmark is within 3% of all-time highs.

Sales of pre-owned homes increased by 2% in July compared to June, reaching 4.01 million units, as per the National Association of Realtors. The average rate on the 30-year fixed mortgage was in decline during the same period. The median price rose by 0.2%, hitting a record high for July at $422,400.