Honestly, if you were looking for a relaxing Thursday on Wall Street, August 21, 2025, definitely wasn't the day for it. The vibes were heavy. Investors spent most of the session looking over their shoulders, nervously waiting for Jerome Powell to take the stage at Jackson Hole. It’s that classic "calm before the storm" feeling, except the "calm" involved the S&P 500 sliding for its fifth straight day.
Stock Market News August 21 2025: The Five-Day Slide
The S&P 500 closed down 0.4% at 6,370.17. It sounds like a small dip, but it’s the fifth consecutive day of red. Think about that. We haven’t seen a winning session since the index hit its all-time high last Thursday. The Dow Jones Industrial Average didn't fare much better, dropping about 152 points to end at 44,785.50. Even the tech-heavy Nasdaq, which usually has some fight in it, slipped 0.7% to 21,100.31.
Why the long face on Wall Street? Basically, it’s a mix of "Big Tech fatigue" and a sudden realization that interest rate cuts aren't a sure thing. A fresh report on U.S. business activity came out, and it was a bit too "good" for the market's liking. When the economy looks too strong, the Fed gets itchy about keeping rates high to fight inflation.
Walmart’s Rough Spring
Walmart (WMT) was basically the anchor dragging the Dow down today. Shares tumbled 4.5% after they dropped their earnings report. Even though they actually grew revenue by 5% and saw comparable store sales rise 4.3%, their operating income fell over 8%. Investors hated that. It’s kinda scary when the world’s biggest retailer struggles with profit margins, especially when they’ve already raised their outlook for the year. It makes you wonder if the "Goldilocks" consumer story is starting to fray at the edges.
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The Trump Factor and the Solar Sell-Off
Politics crashed the party in a big way today. First Solar (FSLR) shares absolutely cratered, plunging 7% to lead the S&P 500 losers. Why? President Trump made comments suggesting the U.S. might stop approving new solar and wind projects, blaming them for high electricity costs.
The ripple effect was brutal:
- Sunrun (RUN) and Enphase Energy (ENPH) both caught a chill and dropped significantly.
- SolarEdge (SEDG) also saw red as the renewable sector recalibrated for a much tougher regulatory environment.
On the flip side, some "boring" sectors actually had a decent day. Energy, health care, and consumer staples were mostly green. It’s a classic defensive rotation. When people get spooked by tech valuations and political headlines, they start buying things like oil and medicine.
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Nvidia and the AI Waiting Game
Everyone is obsessed with Nvidia (NVDA) right now, and for good reason. They are the sun that the rest of the tech world orbits. While the stock was down a bit today, it actually held steadier than some of its peers after a couple of days of wild swings.
We’re essentially in a holding pattern until they report earnings next week. Options traders are pricing in a massive move—some estimates suggest the S&P 500 could swing 0.9% just based on Nvidia’s results alone. That’s a lot of power for one company to hold over your retirement account.
Winners in a Sea of Red
It wasn't all bad news.
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- Paramount Skydance (PSKY): These guys were the stars of the day, surging nearly 15%. They’ve basically become a "meme stock" lately, especially after announcing they grabbed the programming rights for the UFC.
- Packaging Corp of America (PKG): Jumped over 6%. This was a weird one—International Paper (IP) announced plant closures, which basically means less supply in the market. Less supply usually means higher prices, so PKG and Smurfit WestRock (SW) both rode that wave up.
- Hewlett Packard Enterprise (HPE): Rose 3.7% after Morgan Stanley gave them a thumbs up, citing AI growth.
What This Means for Your Money
If you're looking at your portfolio tonight, don't panic, but do pay attention. The 10-year Treasury yield is sitting at 4.33%. That’s high. It means borrowing money is getting more expensive again, which is why those high-growth tech stocks are feeling the heat.
The dollar index is also up to 98.64. A strong dollar is great if you’re traveling to Europe, but it’s kind of a headache for big U.S. companies that sell stuff overseas. It makes their products more expensive for everyone else.
Actionable Steps for Investors
- Watch the Jackson Hole Keynote: Tomorrow is the big day. If Powell sounds "hawkish" (meaning he wants to keep rates high), expect more red. If he hints at a September cut, we might see a massive relief rally.
- Re-evaluate Solar Exposure: If you're heavy on renewables, the current administration's stance is a major headwind. It might be time to diversify into more traditional energy or infrastructure plays that have political tailwinds.
- Don't Chase the Meme: Paramount's 15% jump is exciting, but it's volatile. Unless you have a high risk tolerance, "meme-like" moves are often followed by sharp corrections.
- Focus on Quality Retail: Walmart's margin squeeze is a warning. Look for retail companies with better "pricing power"—the ones that can raise prices without losing customers.
The market is clearly nervous, but it's not a crash. It’s a recalibration. We’ve had a massive run-up in 2025 so far, and a 1.2% dip in the S&P over a week is healthy, even if it feels annoying. Keep your eyes on the Fed and Nvidia; they're the ones driving the bus right now.