U.S. stocks ended lower on Monday, August 19, with the S&P 500 retreating under pressure from tech giants, particularly Nvidia, while the Dow Jones managed to edge higher thanks to Home Depot.
At the close, the S&P 500 fell 0.59% to 6,411.37 points, while the Nasdaq Composite dropped 1.46% to 21,314.95 points. In contrast, the Dow Jones Industrial Average inched up 10.45 points (0.02%) to 44,922.27 points, touching a new intraday record as Home Depot lifted the blue-chip index.
Large-cap tech stocks and chipmakers weighed on the market:
Nvidia lost 3.5%
AMD tumbled 5.4%
Broadcom slipped 3.6%
Palantir plunged over 9%, becoming the worst performer in the S&P 500.
Other major tech names, including Tesla, Meta Platforms, and Netflix, also came under selling pressure.
Jayson Bronchetti, Chief Investment Officer at Lincoln Financial, commented: “The AI trade hasn’t broken down, but it may be catching its breath. After a 40% rally in the Nasdaq Composite since April 2025, it’s typical for the market to pause and reset in response to fresh economic data and the Federal Reserve’s policy outlook.”
He added that capital may rotate into a broader range of sectors, especially companies proving their ability to leverage AI for margin expansion and efficiency, potentially supporting more sustainable growth even if short-term pullbacks occur.
Home Depot shares rose 3% after the home improvement giant reaffirmed its full-year outlook, despite reporting weaker-than-expected Q2 2025 earnings.
Investors are now awaiting earnings from Lowe’s, Walmart, and Target later this week to gauge the strength of U.S. consumer spending amid mixed inflation signals and shifting trade policies.
Market attention is turning to the upcoming Federal Reserve symposium in Jackson Hole, Wyoming, where Fed Chair Jerome Powell is expected to provide insights on monetary policy for the remainder of 2025.
According to the CME FedWatch tool, traders are pricing in an 85% probability of a 0.25% rate cut at the September 2025 Fed meeting.
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