Honestly, if you looked at your 401(k) on Friday, you probably wanted to throw your phone into a lake. But today? Total 180. The stock market news August 4 2025 is basically a massive sigh of relief as Wall Street tries to forget that Friday ever happened. We’re seeing a classic "relief rally," but don't let the green screens fool you—there’s a lot of weirdness bubbling under the surface.
The Monday Rebound: Erasing the "Friday Fright"
The major indexes aren't just up; they're charging back. After the S&P 500 had its absolute worst day since May last Friday, investors decided to go bargain hunting this morning.
Here’s the raw scoreboard from the closing bell:
- The S&P 500 climbed 1.5%, finishing at 6,329.94.
- The Dow Jones Industrial Average jumped nearly 600 points (1.3%) to hit 44,173.64.
- The Nasdaq Composite led the pack, surging 2% to 21,053.58.
- Even the Russell 2000 small-cap index got in on the action, rising 2.1%.
It's a bit of a head-scratcher when you think about it. Just 72 hours ago, everyone was panicked because the July jobs report was a total disaster—only 73,000 jobs added and massive downward revisions to May and June. Plus, those new tariffs from the White House didn't exactly scream "buy stocks." So why the change of heart?
Basically, the market is betting that the bad news is actually good news for interest rates. The logic? The economy looks just "broken" enough that the Federal Reserve almost has to cut rates in September. According to the CME FedWatch Tool, the odds of a 25-basis-point cut have skyrocketed to over 86%. Investors love cheap money more than they fear a slow economy, apparently.
Tech is Back, and IDEXX is Winning at... Ears?
If you want to know who drove the bus today, look at the chips. Nvidia (NVDA) took a 4% leap, and Broadcom followed close behind. It’s like the AI fever broke for a second on Friday and then came back even stronger today.
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But the real shocker of the day wasn't a tech giant. It was IDEXX Laboratories (IDXX). Their stock exploded by 27% today. Why? They reported earnings that crushed expectations, largely thanks to a new diagnostic tool for animal ears. I’m serious. Analysts at William Blair are pointing out that the "pandemic pet" era has left us with an aging population of dogs and cats that need more medical care. It turns out veterinary diagnostics are recession-proof—or at least tariff-proof.
On the flip side, ON Semiconductor (ON) had a brutal session, cratering 16%. They met their profit numbers, but their outlook for the auto market was grim. They’re seeing a lot of "cautious behavior" from customers in Europe and North America. It’s a stark reminder that while the "Magnificent Seven" tech stocks are partying, the companies actually making the parts for your future electric car are feeling the squeeze.
The "Warren Buffett" Problem
One thing everyone is whispering about today is Berkshire Hathaway. While the rest of the market rallied, Berkshire was a bit of a drag. They’ve been sitting on a record-breaking mountain of cash—over $300 billion.
When the world’s most famous investor stops buying and starts hoarding cash, it usually means he thinks everything is too expensive. It’s the elephant in the room. You’ve got the Nasdaq hitting new highs while the "Oracle of Omaha" is effectively stuffing money under his mattress. It makes you wonder if this rally has legs or if we’re just whistling past the graveyard.
Bitcoin and the New Reserve Asset Conversation
We also saw some interesting movement in the crypto space. Bitcoin (IBIT) had a rough weekend, dipping toward $114,000, but companies like Matador Technologies are doubling down. They just announced they’ve grown their Bitcoin treasury sevenfold in less than a year.
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What’s wild is the shift in tone. We’re no longer just talking about Bitcoin as a "digital gold" for hobbyists. There are now routine conversations at the sovereign level about digital-asset reserves. It’s becoming a foundational part of the capital markets, even if the volatility still gives traditional bankers heart palpitations.
What You Should Actually Do Now
So, the stock market news August 4 2025 looks great on paper, but how do you play it? Honestly, the market is kind of in a "wait and see" mode for the rest of the week.
Watch the Yield Curve
Keep a close eye on the 10-year Treasury yield. It hit its lowest level since April recently. If yields keep falling, it means the bond market is genuinely scared of a recession, no matter what the stock market says.
Earnings Aren't Over
We have Palantir (PLTR) and Vertex Pharmaceuticals (VRTX) reporting after the bell. If Palantir misses, that AI rally we saw today could evaporate by tomorrow morning.
Don't Chase the Rebound
It’s tempting to jump into the stocks that went up 2% today, but remember that we’re entering August and September—historically the most volatile months for the S&P 500.
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The smartest move right now? Check your exposure to "defensive" sectors. Utilities were the only winners during last week’s bloodbath for a reason. Companies like PG&E are actually showing some resilience because, at the end of the day, people still need to turn the lights on, regardless of what the Fed does with interest rates.
Stay disciplined. This market is fickle, and today’s hero is often tomorrow’s cautionary tale.
Actionable Insights for the Week:
- Rebalance towards defense: Look at Utilities (XLU) or Healthcare if you’re heavy on Tech.
- Monitor the Fed Speak: Several Fed officials are scheduled to talk this week. Any hint that they won't cut in September will send stocks back into a tailspin.
- Check your "Pet" exposure: Seriously, the IDEXX move shows that the "humanization of pets" trend is a massive economic force that's currently decoupled from broader trade wars.
Keep your head on a swivel. Tomorrow is a new day, and in this 2025 economy, that usually means a new set of surprises.
Next Steps for You:
- Review your portfolio's concentration in semiconductor stocks following the divergent performance of Nvidia and ON Semi.
- Compare the Q2 earnings results of your holdings against the S&P 500 average net profit margin of 12.3% to see which of your stocks are underperforming the broader market.