If you were watching the tickers on Tuesday, you saw a bit of a split personality act from the indices. The stock market today August 19 2025 was basically a tale of two cities: a sleepy, resilient Dow and a Nasdaq that looked like it had seen a ghost. Honestly, if you’re heavily invested in tech, it was a rough afternoon.
The S&P 500 slipped 0.6% to 6,411.37. It’s the third straight day of losses for the benchmark, which feels a little weird considering we were just hitting record highs last week. Meanwhile, the tech-heavy Nasdaq Composite got absolutely hammered, dropping 1.5% to close at 21,314.95.
On the flip side, the Dow Jones Industrial Average actually managed to squeeze out a tiny gain of about 10 points. It touched an all-time high early in the session before people started getting nervous.
The AI Darling Palantir Takes a Massive Hit
You’ve probably seen the headlines about Palantir (PLTR) lately. It’s been the poster child for the AI mania, up 130% on the year heading into today. But the party came to a screeching halt.
Palantir shares tumbled over 9%.
Why? Basically, Citron Research’s Andrew Left came out and said the valuation has become totally disconnected from the actual business fundamentals. Short sellers are starting to swarm. S3 Partners data shows that bets against the stock are building up fast—only Meta has seen more short interest growth this year.
👉 See also: Why 425 Market Street San Francisco California 94105 Stays Relevant in a Remote World
It wasn't just Palantir, though. The "Big Tech" contagion was everywhere:
- Nvidia (NVDA) dropped 3.5%
- Broadcom (AVGO) fell 3.5%
- Meta Platforms (META) slid 2%
- Tesla (TSLA) gave up 2%
When the companies that have been carrying the entire market on their backs start to stumble, everyone notices.
Intel’s Surprising Lifeline
Amidst the sea of red in the chip sector, Intel (INTC) actually had a fantastic day. The stock jumped 7%.
SoftBank Group announced a $2 billion investment in the embattled U.S. chipmaker. This is huge because Intel has been struggling to find its footing while Nvidia and AMD ate its lunch.
There's also some weird political drama in the mix. U.S. Commerce Secretary Howard Lutnick hinted on CNBC that the Trump administration might even take an ownership stake in Intel to keep it competitive. It’s a wild move that would have been unthinkable a few years ago.
✨ Don't miss: Is Today a Holiday for the Stock Market? What You Need to Know Before the Opening Bell
What Really Happened With the Fed and Inflation?
Everyone is holding their breath for Fed Chair Jerome Powell’s speech at Jackson Hole later this week. The stock market today August 19 2025 reflected that "wait and see" anxiety.
Investors are desperate for a 25-basis-point rate cut in September. The latest July CPI data was actually pretty steady, which should give the Fed room to move. But there’s a catch.
The Producer Price Index (PPI) came in hotter than people expected. That means the cost of making stuff is going up, even if consumers aren't feeling the full brunt of it yet. Powell has been notoriously cautious, especially with the current administration's tariffs potentially complicating the inflation picture.
Treasury yields actually eased today. The 10-year Treasury yield fell to 4.30% from 4.34%. Usually, lower yields help tech stocks, but today the valuation fears were just too loud to ignore.
Notable Winners and Losers from Tuesday
- Viking Therapeutics (VKTX): Absolutely cratered 42.1% after trial results for their obesity pill didn't wow the market.
- Home Depot (HD): Gained 3.2% and was basically the only reason the Dow didn't finish in the red. They stayed firm on their full-year forecasts despite a slight miss in expectations.
- Prologis (PLD): Jumped 5% after Mizuho gave them an upgrade, betting they’ll benefit when rates finally do drop.
Crypto Gets Clipped
If you were hoping Bitcoin would stay steady, today wasn't your day. Bitcoin slid to about $113,100, down from $117,000 yesterday.
🔗 Read more: Olin Corporation Stock Price: What Most People Get Wrong
Naturally, the stocks tied to the crypto world followed suit. Coinbase (COIN) fell nearly 6%, and MicroStrategy (MSTR)—which is essentially a Bitcoin holding company at this point—plunged over 7%.
It’s a reminder that even in a "bull market," the volatility in this sector is enough to give you whiplash.
The Reality Check on Market Valuation
Let’s be real: markets have been on a tear since April. Many analysts are starting to wonder if we've reached the "too much, too fast" phase. When you see a company like Oracle (ORCL) lose 5.8% in a single day while they’re cutting jobs in their cloud division to fund more AI, you start to see the cracks.
There’s a reorganization happening. Companies are pivoting everything toward AI, but if the earnings don't justify the spend soon, the correction could be deeper than just a few days of red.
Actionable Steps for Investors
Moving forward, don't just chase the AI hype. The stock market today August 19 2025 proved that even the most loved stocks can get cut down quickly when valuations get stretched.
- Watch the Jackson Hole Symposium: Friday morning is the big one. If Powell sounds hawkish, expect more tech selling.
- Rebalance toward defensive sectors: Home Depot’s resilience today shows there is safety in retail and "old school" value stocks when tech gets shaky.
- Monitor the 10-year yield: If it stays around 4.30% or drops lower, it might provide a floor for the S&P 500.
- Diversify away from "Pure Play" AI: Look at the infrastructure winners like Prologis or even the turnaround story in Intel, rather than just high-multiple software plays like Palantir.
The market is currently in a "show me the money" phase regarding AI. Until the next round of retail earnings comes out later this week, expect things to remain choppy.