Weekly Stock Market Update | Dow, S&P 500, NASDAQ News – August 17, 2025 at 07:01 AM

Over the last week, traders experienced some volatility in the US stock market. On Friday, the S&P 500 saw a slight decrease of 0.29% after hitting a record high, settling at 6,449.80. The Nasdaq Composite dropped by 0.40% to end the day at 21,622.98. The Dow Jones Industrial Average however, grew by 34.86 points, rising by 0.08% and closing at 44,946.12, due in part to a 12% jump in UnitedHealth.

Consumer sentiment uncertainty and a drop in chip stocks were influential factors in the market’s performance. Applied Materials dropped by 14%, leading the VanEck Semiconductor ETF down by 2%, and Nvidia lost around 1%. Despite these dips, for the week overall, the Dow gained 1.74%, while the S&P 500 and Nasdaq grew by 0.94% and 0.81% respectively.

UnitedHealth was one of the key accomplishments of the week, with its stock hitting a high after Warren Buffett’s company, Berkshire Hathaway, purchased five million shares. Intel also saw a boost following a report about potential investment from the Trump administration. Conversely, Applied Materials experience a negative turn, with stocks dipping about 14% due to weak fourth-quarter predictions associated with tepid demand in China.

Meanwhile, cryptocurrency exchange operator Bullish rose by 10%, while AMD and Apple recorded gains of 5.4% and 1.6% respectively. Paramount Skydance shares also performed exceptionally well, rising by 36.7% over the week.

Economists continue to watch the market closely, as contradictory sentiments persist – while there are signs of an economic slowdown, the stock market continues to show strength. With consumer sentiment showing signs of depression and inflation likely to increase from 2.7% to around 4.5%, investor optimism is being tested.

Despite these challenges, the market continues to forge ahead, with the Dow Jones gaining 463.66 points or 1.04%, closing at 44,922.27 on Wednesday. The S&P 500 also grew by 0.32% to 6,466.58 and the Nasdaq Composite finished up 0.14% at 21,713.14 over the week. The continued expectation of lower Federal Reserve rates is supporting market confidence, with near 100% trader confidence in a rate cut in September.

This week, inflation concerns and expected Federal Reserve interest rate cuts were the focus for investors. The S&P 500 rose 2.5% for the week, while the Nasdaq Composite rose nearly 4%, both ending with fresh record closes. The Dow Jones Industrial Average also saw a growth of 1.4%.

Apple’s $100 billion US investment played a significant role in moving the tech trade higher. Investor speculation is high for several interest rate cuts from the Federal Reserve this year, spurred by fears of a slowing labor market. The nomination of Stephen Miran, current chair of the president’s Council of Economic Advisers, to replace Federal Reserve Governor Adriana Kugler has further ignited these expectations.

The release of the July Consumer Price Index (CPI) will be the week’s most significant economic news, offering an insight into how tariffs are impacting inflation. Economists predict that headline inflation rose 2.8% annually in July, up from 2.7% in June.

Wednesday saw a significant increase in US stocks, with the Dow Jones Industrial Average closing up over 1%, or more than 450 points. The record highs of the S&P 500 and Nasdaq were credited to near-unanimous investor bets on a Federal Reserve rate cut at its next meeting following the latest inflation data.

Treasury Secretary Scott Bessent called on the Fed to lower rates by 150 to 175 basis points, predicting a series of rate cuts starting in September. Traders fully priced in a September cut, with bets rising on a potential “jumbo” cut of 50 basis points.

However, stocks such as Circle and Cava performed poorly, the former announcing the sale of 10 million shares following its first earnings report since public debut, and the latter issuing its first annual sales growth target cut.

In spite of a concerning wholesale inflation report, stocks recovered from earlier lows on Thursday, with the S&P 500 marking its third consecutive record close. Meanwhile, the Nasdaq Composite and Dow Jones Industrial Average saw marginal decreases. Despite the July producer price index reading suggesting that a Federal Reserve rate cut is far from guaranteed, the chances of a rate cut in September remained high at around 93%.

Overall, it was a week of highs and lows, with inflation concerns and interest rate cut anticipation driving market activity. The week’s main gainers included companies such as Apple, while Circle and Cava faced notable losses.