Market Overview – August 5, 2025
Yesterday’s markets delivered mixed results across the globe, as investors digested weak U.S. economic data, optimism around potential rate cuts, strong tech earnings, and renewed geopolitical friction over trade. Here’s the full breakdown of what moved the markets on August 5, 2025.
🇺🇸 U.S. Markets
- S&P 500: -0.3%
- Nasdaq: -0.5%
- Dow Jones: +0.1%
Markets reacted to a disappointing ISM Services Index, raising concerns about slowing economic momentum. However, dovish commentary from Federal Reserve officials raised hopes of a possible rate cut in September, cushioning losses. Palantir led tech gains with a 6% jump on strong earnings.
📉 Major U.S. ETFs Performance
| ETF | Price (USD) | Change | Volume |
|---|---|---|---|
| SPDR S&P 500 ETF (SPY) | 629.95 | -1.22 (-0.19%) | 44,252,211 |
| Invesco QQQ Trust (QQQ) | 562.68 | -1.42 (-0.25%) | 32,218,470 |
| SPDR Dow Jones ETF (DIA) | 441.76 | -0.05 (-0.01%) | 2,679,955 |
🌍 Global Markets
- FTSE 100 (UK): +0.49%
- Nikkei (Japan): +0.64%
- Shanghai Composite (China): +0.96%
- Stoxx 600 (EU): Slight gain
European markets rose on the back of strong corporate earnings from firms like BP and Diageo. Asian stocks rallied as risk appetite improved, though trade tensions loomed. The U.S. announced potential new tariffs on India and Switzerland, rattling emerging market sentiment.
🇮🇳 Indian Markets
- SENSEX: -308 points
- Nifty50: Fell below 24,700
Indian equities dropped after the U.S. hinted at imposing tariffs on India over its continued Russian oil imports. Heavy foreign institutional outflows (FII) also contributed to the decline.
📊 Key Drivers
- Fed Outlook: Signs of labor market cooling supported expectations of a rate cut in September.
- Earnings Highlights: Palantir surged, Vertex Pharmaceuticals plunged ~14% after halting a pain treatment program.
- Trade Risks: Rising U.S. tariff threats, especially toward India and Switzerland, weighed on investor sentiment.
📈 Summary Table
| Region | Index | Movement | Key Drivers |
|---|---|---|---|
| U.S. | S&P 500, Nasdaq, Dow | Mixed | Weak ISM data, Palantir earnings |
| Europe | FTSE 100, Stoxx 600 | Up ~0.5% | Positive earnings, energy rebound |
| Asia | Nikkei, Shanghai | Up ~0.6–1% | Improved risk appetite |
| India | SENSEX, Nifty50 | Down ~1% | Tariff threat, FII outflows |
🔍 Final Thoughts
Despite mixed economic data, global equities showed resilience. While the tech sector (led by AI optimism) continues to shine, geopolitical risks and tariff uncertainty could limit upside momentum in the near term. Investors now await more earnings and the next major Fed decision.
Note: All data as of market close, August 5, 2025.
