| Name | Price | Change | % Chg |
|---|---|---|---|
| Dow | 44,111.74 | -61.9 | -0.14% |
| S&P 500 | 6,299.19 | -30.75 | -0.49% |
| Nasdaq | 20,916.55 | -137.03 | -0.65% |
| VIX | 17.85 | 0.33 | 1.88% |
| Gold | 3,436.80 | 2.1 | 0.06% |
| Oil | 65.29 | 0.13 | 0.20% |
OVERVIEW OF THE US MARKET
US Stocks wiped out gains after data showed weakening US services amid sticky price pressures, raising concern about the Federal Reserve’s policy challenges.
Following a rally that put S&P 500 on the brink of all-time highs, the benchmark lost steam. A gauge of chipmakers slid more than 1%. In late hours, Advanced Micro Devices Inc. gave a stronger-than-expected sales forecast but warned that its access to the crucial China market remains uncertain. Super Micro Computer Inc. tumbled after its results missed expectations.
The S&P 500 edged slightly lower today, declining 0.5% as softer-than-expected U.S. economic data pushed sentiment downward.
However, robust corporate earnings helped cushion losses. Palantir jumped 7.8% on better‑than‑expected results and stronger guidance, fueled by AI demand, while Axon Enterprise surged over 16% thanks to strong profit growth.
Pfizer rose about 5% on upbeat results, while DuPont gained 2.4% for delivering solid earnings and a shareholder buyback plan. Axon Enterprise rocketed 16% after strong profit growth and improved guidance linked to its AI-based tools.
Overall earnings sentiment remains optimistic, especially among tech and AI leaders like Nvidia and Microsoft.
Today’s sector rotation favored defensive and commodity-linked sectors like Utilities, Energy, and Real Estate while economically-sensitive areas like Health Care, Information Technology, and Industrials lagged amid macroeconomic uncertainty and rising costs.
A chorus of stock market prognosticators at some of Wall Street’s biggest firms is warning clients to prepare for a pullback as sky-high equity valuations slam into souring economic data.
On Monday, Morgan Stanley, Deutsche Bank AG and Evercore ISI all cautioned that the S&P 500 Index is due for a near-term drop in the weeks and months ahead. The predictions come after a furious rally from April’s lows that propelled the gauge to levels it has never seen before.
Morgan Stanley strategist Mike Wilson sees a correction of up to 10% this quarter as tariffs hit consumers and corporate balance sheets. Evercore’s Julian Emanuel is expecting a more substantial decline of as much as 15%. And a team at Deutsche Bank led by Parag Thatte notes that a small drawdown in equities is overdue considering they’ve been on a tear for over three months.
At Jefferies, Andrew Greenebaum says the Fed could be poised to trigger a stock-market regime change that sees smaller companies perform better than megacap tech. Data going back to 1990 show that the S&P 500 Equal Weighted Index outperformed the traditional market-cap weighted version of the benchmark when the Fed is reducing rates
The calls are coming amid mounting concerns about the US economy after data last week showed an uptick in inflation as well as weakening job growth and consumer spending. In addition, stocks are entering what’s usually their weakest time of the year. Over the past three decades, the S&P 500 has performed the worst in August and September, losing 0.7% on average in each month, compared with a 1.1% gain on average across other months, according to data compiled by Bloomberg.
OVERVIEW OF THE AUSTRALIAN MARKET
The Australian share market soared to a record high on August 5, 2025, shrugging off global economic jitters. The S&P/ASX 200 index surged 106.7 points, or 1.23%, to close at 8,770.4, surpassing its previous record close of 8,757.2. The broader All Ordinaries index climbed 106.8 points, or 1.20%, to 9,028.8, reflecting broad-based strength. Advancers dominated decliners in the S&P/ASX 300, with a decisive 245-to-42 ratio, signaling robust investor confidence.
Consumer discretionary stocks led the charge, rallying 1.81%, driven by standout performances from Wesfarmers (+2.83% to $87.52) and JB Hi-Fi (+1.8% to $115.80). Financials followed closely, up 1.49%, with all big four banks posting gains of 1.4% or more, NAB being the strongest at +1.6% to $38.80. Real estate (+1.42%) and information technology (+1.27%) sectors also benefited, buoyed by optimism around potential US and Australian interest rate cuts. Miners saw a second day of gains, with BHP, Rio Tinto, and Fortescue up 0.4% to 0.5%, supported by resilient iron ore prices. Gold producers like Newmont Corporation (+4.1%) and Ramelius Resources (+3.9%) shone despite a slight dip in gold prices. Iluka Resources was the top performer, surging 8.7% after government signals of a price floor for rare earths, while Austal jumped 7.9% on defense contract wins and strategic asset designation.
The rally was underpinned by strong demand for Australian shares, outstripping supply and pushing prices higher. Despite global concerns, including a weak US jobs report and tariff uncertainties, Australia’s stable banking sector and diversified economy positioned it as a safe haven, as noted by Pepperstone’s Chris Weston. Investors appeared unfazed by risks heading into earnings season, with market sentiment bolstered by a global tech rally sparked by US AI stocks like Palantir and NVIDIA.
