The stock market experienced a volatile week marked by early declines in tech-heavy indices amid concerns over interest rates and economic data, followed by a sharp rebound on Friday after Federal Reserve Chair Jerome Powell signaled potential rate cuts. Investors focused on retail earnings, labor market indicators, and Powell’s Jackson Hole speech, which boosted sentiment and led to record highs for the Dow. Overall, volatility was moderate, with the VIX fluctuating in the 14-16 range, reflecting uncertainty before the Fed’s comments. The Dow gained about 1.5% for the week, the S&P 500 rose approximately 0.3%, while the Nasdaq slipped around 0.6%, amid sector rotations away from tech.
Below is a day-by-day breakdown, including key index performances, notable news, and volatility analysis. Index data includes closing prices where available, with percentage changes calculated from the previous trading day’s close. Volumes are from Dow data as a proxy for market activity.
August 18, 2025 (Monday)
Indices Breakdown:
Dow Jones: Close 44,911.82, -0.34% (Slight decline amid cautious trading.)
S&P 500: Close 6,449.15, -0.31% (Hovered near flatline.)
Nasdaq: Close 21,629.77, -0.35% (Tech sector pressure.)
Key News: Stocks closed little changed as major indices hovered near record highs, with investors awaiting retail sector earnings and Federal Reserve Chair Jerome Powell’s speech at Jackson Hole. Consumer sentiment dipped slightly, but markets remained steady amid discussions on potential rate cuts.
Volatility Analysis: The VIX closed at 14.99, reflecting low anxiety. Daily ranges were narrow (e.g., Dow high-low spread ~0.29%), indicating stable conditions. Volume: 416,460,000 (moderate).
August 19, 2025 (Tuesday)
Indices Breakdown:
Dow Jones: Close 44,922.27, +0.02% (Minimal gain, touched intraday high.)
S&P 500: Close 6,411.37, -0.59% (Declined on tech weakness.)
Nasdaq: Close 21,314.95, -1.45% (Sharp drop led by tech tumble.)
Key News: S&P 500 and Nasdaq fell as tech stocks tumbled, while the Dow closed little changed after touching an all-time high. Investors braced for Powell’s speech, with unease over tariffs and economy lingering; Palantir and other AI firms provided some offset with strong outlooks.
Volatility Analysis: VIX rose to 15.57, signaling increased caution. Intraday volatility widened (Dow range ~0.63%), but no major instability. Volume: 466,010,000 (elevated amid sector shifts).
August 20, 2025 (Wednesday)
Indices Breakdown:
Dow Jones: Close 44,938.31, +0.04% (Slight uptick.)
S&P 500: Close 6,395.78, -0.24% (Fell for fourth straight day.)
Nasdaq: Close 21,172.86, -0.66% (Continued tech slump.)
Indices Breakdown: S&P 500 fell for the fourth consecutive day as tech stock slump continued, with investors bracing for Fed Chair Powell’s speech. Oil supply forecasts were lifted, but markets focused on potential rate adjustments.
Volatility Analysis: VIX edged up to 15.69, remaining in moderate territory. Daily fluctuations increased (Dow range ~0.25%), reflecting ongoing uncertainty. Volume: 512,550,000 (higher due to anticipation).
August 21, 2025 (Thursday)
Indices Breakdown:
Dow Jones: Close 44,785.50, -0.34% (Pulled back.)
S&P 500: Close 6,370.17, -0.40% (Lower for fifth straight day.)
Nasdaq: Close 21,100.31, -0.34% (Modest decline.)
Key News: S&P 500 closed lower for the fifth straight day ahead of Powell’s speech; Walmart stock slid after earnings, while insurers like Allstate reported catastrophe losses. Markets awaited clarity on rates amid cooling labor data.
Volatility Analysis: VIX climbed to 16.60, the week’s high, indicating rising tension. Intraday moves widened (Dow range ~0.69%), with some profit-taking. Volume: 407,540,000 (average).
August 22, 2025 (Friday)
Indices Breakdown:
Dow Jones: Close 45,631.74, +1.88% (Surged to record close.)
S&P 500: Close 6,466.91, +1.52% (Strong rebound near record.)
Nasdaq: Close 21,496.54, +1.87% (Rally led by broad gains.)
Key News: Stocks surged after Powell signaled possible rate cuts, with the Dow jumping 850 points to its first record close of 2025. Investors cheered the dovish comments, reversing weekly losses despite persistent inflation risks from tariffs.
Volatility Analysis: VIX dropped to 14.22, easing significantly. Intraday volatility was contained (Dow range ~0.18%), with bullish momentum dominating. Volume: 484,720,000 (elevated, end-of-week rally).