Honestly, if you were looking at your portfolio today, you probably felt that familiar sting of the "AI hangover." It's been a weird Tuesday on Wall Street. We’ve spent most of the summer watching tech stocks climb a mountain that seemingly had no peak, but today, the air got a little thin.
Stock market news today august 19 2025 is dominated by one clear theme: the stars of the artificial intelligence boom are finally starting to dim. The S&P 500 slipped 0.6%, closing at 6,411.37. That doesn’t sound like a crash—and it isn’t—but it marks the third straight day of losses. Meanwhile, the Nasdaq Composite, which is basically the home turf for the "AI mania," took a much harder punch, sinking 1.5% to finish at 21,314.95.
Why the AI Darlings are Drowning
It’s kinda wild how fast sentiment shifts. Just a week ago, names like Nvidia and Palantir were untouchable. Today? Not so much. Nvidia, the literal engine of the AI movement, dropped 3.5%. But the real headline-grabber was Palantir Technologies.
Palantir (PLTR) absolutely tumbled, falling 9.4% in a single session. This wasn't just random volatility. It turns out short sellers are smelling blood in the water. Andrew Left of Citron Research came out swinging, basically saying the stock’s valuation has completely detached from reality. When you're the most "shorted" stock in the S&P 500 besides Meta, people notice. Speaking of Meta, Mark Zuckerberg’s empire didn't escape the carnage either, sliding 2.1%.
The Big Numbers from the Closing Bell
- S&P 500: Down 37.78 points (0.6%) to 6,411.37
- Nasdaq: Down 314.82 points (1.5%) to 21,314.95
- Dow Jones: Up 10.45 points (less than 0.1%) to 44,922.27
- Russell 2000: Down 17.86 points (0.8%) to 2,276.61
You'll notice the Dow actually stayed green. Barely. It’s like the tortoise in a race where the hares are all tripping over their own feet. Home Depot was a big reason for that, jumping 3.2% after sticking to its profit forecasts despite a shaky housing market.
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The Intel Surprise and the SoftBank Lifeline
While everyone was panic-selling their AI chips, Intel found a weird way to win. It’s no secret Intel has been struggling to keep up with the cool kids, but today they got a $2 billion shot in the arm from Japan’s SoftBank Group.
Intel shares jumped 7% on the news. There’s also some chatter coming out of Washington. U.S. Commerce Secretary Howard Lutnick hinted in a CNBC interview that the Trump administration might actually take an ownership stake in Intel to keep it competitive. It’s a bit of a "hail mary," but for Intel investors, it's the first good news they've had in a minute.
Bitcoin and the "Rate Cut" Anxiety
If you're into crypto, today was a bit of a bloodbath. Bitcoin slid to around $113,100, a far cry from the $124,500 record we saw just last Thursday.
Why the sudden cold feet? Basically, everyone is terrified of what Jerome Powell is going to say at the Jackson Hole symposium later this week. The market is desperate for a 25-basis-point rate cut in September. But Powell has been playing hard to get, constantly citing "tariff-induced inflation" as a reason to keep rates steady.
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Strategists at Bank of America are already warning that the Fed might not be as "dovish" as we hope. If Powell comes out on Friday and says "more pain ahead," today's 0.6% dip will look like a walk in the park.
Stocks That Actually Made Moves
It wasn't all red screens and misery today. A few companies managed to swim against the current.
Palo Alto Networks (PANW) rose 3.1% because they actually proved they can make money. Their earnings beat expectations, and their "platformization" strategy—basically being a one-stop-shop for cybersecurity—seems to be working.
On the flip side, Viking Therapeutics had a day they’d probably like to forget. Their stock cratered 42.1% after some clinical trial data for an obesity drug didn't live up to the hype. It’s a brutal reminder that in the biotech world, you’re only as good as your last lab report.
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What You Should Actually Do Now
Look, stock market news today august 19 2025 might feel stressful, but it’s mostly just the market blowing off steam after a massive run-up. We’ve seen this movie before. High valuations meet a "wait-and-see" Fed, and things get choppy.
If you’re wondering how to play this, here’s the smart move:
- Check your tech exposure. If 80% of your portfolio is in AI chips, you're basically gambling on Jerome Powell's mood. Diversify into some of those "boring" Dow stocks that held up today.
- Watch the $110,000 level on Bitcoin. If it breaks below that, the next support level is a long way down.
- Keep an eye on the 10-year Treasury yield. It fell to 4.30% today. If it keeps dropping, it means the bond market is betting on a recession, which is a whole different ballgame.
- Don't FOMO into Intel. Yes, the SoftBank deal is cool, but Intel still has massive structural issues to fix before it's a "safe" long-term bet.
The real show starts Friday when Powell takes the mic. Until then, expect more of this "drift lower" energy as the big players move their chips off the table.
Keep your eye on the retail earnings coming out tomorrow. If the consumer is still spending, we might see a relief rally. If not, well, keep that seatbelt fastened.