Stock Market Update Tuesday August 5, 2025
- Aug 5, 2025
- 5 min read
Stock Market Update Tuesday August 5, 2025 Failed rally on soft data; small caps shine amid broader weakness Equity markets opened higher this morning on the back of softer-than-expected economic data, but the rally quickly lost steam, with major indices reversing and giving back much of Monday’s rebound. The S&P 500 (SPX) declined 0.5%, while the Nasdaq 100 (QQQ) slid 0.7%, pressured by weakness in large-cap growth. In contrast, small caps outperformed, with the Russell 2000 (IWM) gaining 0.6%, building on yesterday’s strength and showing early signs of rotation. The reversal underscores investor caution around macro uncertainty, especially with inflation data and Jackson Hole on the horizon. Leadership remains narrow, and the inability to sustain a bounce points to fragile market breadth heading into mid-August.
📊 Index Performance (August 5, 2025)
S&P 500 (SPX): -0.5%
Nasdaq 100 (QQQ): -0.7%
Russell 2000 (IWM): +0.6%
🌐 Away From Stocks: A Quiet Day for Global Macro
Activity outside of equities was muted. The 10-year U.S. Treasury yield (10Y) held steady, reflecting little change in rate expectations. Gold edged slightly higher amid safe-haven demand, while the U.S. Dollar Index (DXY) was unchanged on the day.
The notable mover was crude oil, which extended its recent slide:
WTI crude fell 1.8%, bringing the total decline to approximately 7% over the past week, driven by demand concerns and a stronger supply backdrop.
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