Market key events overview, August 21, 2025

📊 Markets August 21, 2025: balance between defensive stocks, Jackson Hole, and retailers’ reports

Yesterday, U.S. stock indexes continued to show mixed dynamics, reflecting investors’ caution amid expectations of key economic events and corporate earnings.

Indexes

• Nasdaq fell 0.7%, partially recovering from a morning drop of 1.9%, closing slightly below the 21-day moving average, indicating temporary pressure on the tech sector.

• S&P 500 lost 0.24% but held support, showing the resilience of the broader market despite some weak spots.
  
• Dow Jones added 0.04%, posting symbolic growth and holding near record highs. This index remains a benchmark for assessing the overall strength of the U.S. economy.

Sectors under pressure

The technology and retail sectors remain key sources of pressure on the market:

• Target fell more than 6% after weak revenue results and the announcement of a CEO change, raising concerns about the state of the retail segment.
• Walmart, whose report is due today, shows relative resilience, acting as a barometer of U.S. consumer spending. Analysts will closely watch the company’s profit and revenue growth forecasts and its comments on demand amid labor market cooling and inflationary pressure.

Impact of Walmart’s supply chain – Sustainability: environmental consequences of the Walmart effect.

Leaders of the day

• Gold and mining companies: Agnico Eagle, AngloGold, and Kinross rose over 2%, indicating rising demand for safe-haven assets amid market uncertainty.
• Defensive sectors: Boston Scientific (+2%) and Cencora (+3%) broke key technical levels, showing resilience in healthcare technologies and drug distribution.
• Biotechnology: Tarsus and Mirum held positions after earnings reports, reflecting steady investor interest in promising medical and scientific companies.

Upcoming events

• The Fed’s Jackson Hole symposium begins today. Tomorrow, Fed Chair Jerome Powell’s key speech is expected, which may set the tone for monetary policy in the coming months. Markets price in about an 80% chance of a rate cut in September.
• Key indicators for the Fed will be U.S. labor market data and weekly jobless claims, which will signal the strength of consumer demand and the overall economy.
• Walmart report: profit is forecast to grow 11% year-over-year and revenue by 4%. Investors will follow the company’s comments on demand against the backdrop of slowing inflation and a cooling labor market.
  

• Meta (META) announced a hiring freeze in its AI division after record $72 billion spending in 2025, increasing doubts among investors about the profitability of AI projects.
• The oil market maintains moderate growth. Brent gained +0.3% to settle at $67.3 per barrel, while WTI rose +0.8% to $63.2 per barrel. Prices were supported by lower U.S. inventories and stronger domestic demand. Investors are also watching global economic forecasts and OPEC+ decisions, which may guide price dynamics in the second half of the year.

⚖️ Conclusions and strategy
The market shows caution as investors seek balance between safe-haven assets and growth opportunities. Amid uncertainty and anticipation of Fed signals, the focus shifts toward gold, healthcare technologies, and drug distributors.

The key strategy is balancing defensive stocks with selective entry into growth leaders, paying close attention to corporate earnings and macroeconomic data. Risk management and portfolio diversification remain crucial.