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Stocks Close Lower on Weak Services Sector Data, Tariff Concerns

Stocks Close Lower on Weak Services Sector Data, Tariff Concerns

Update: 2025-08-05
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United States stocks closed lower today, with the Standard and Poor’s five hundred index falling thirty and three-quarters points, or zero point five percent, to close at six thousand two hundred ninety-nine point one nine United States dollars. The Dow Jones Industrial Average dipped by sixty-one point nine points, or zero point one percent, to finish at forty-four thousand one hundred eleven point seven four United States dollars. The NASDAQ Composite lost one hundred thirty-seven point zero three points, down zero point seven percent, ending at twenty thousand nine hundred sixteen point five five United States dollars, according to SFGate and broader financial media reports. A weaker-than-expected report on United States services sector activity was a key driver, stoking ongoing concerns about the health of the economy and amplifying anxiety over fresh tariff impacts tied to President Donald Trump’s latest round of measures. However, optimism for future interest rate cuts by the Federal Reserve, together with continued corporate profit surprises, helped limit deeper losses.

Among sectors, communication services, consumer discretionary, materials, and utilities had led gains earlier this week, but today’s declines were broad, signaling that investor appetite was fading across most categories. The Consumer Discretionary and Communication Services sectors had performed better than most, while companies tied to manufacturing and global trade faced outsized headwinds due to tariff concerns and weaker economic data.

Actively traded names included mega-cap technology stocks such as Apple, Microsoft, and Nvidia, which remained market leaders. Materials and industrials companies saw steeper declines, partly reflecting tariff exposure and margin pressures. While no single company dominated headlines for outsized percentage moves, pockets of the market seeing largest losses today were often tied to global trade dynamics and policy headlines. There were no major economic data releases today, but investors remain vigilant ahead of expected readings on the trade deficit and new purchasing manager data due tomorrow, which will be closely watched for clues on economic momentum and possible policy shifts.

Looking to tomorrow, pre-market index futures were indicating muted to slightly negative movement, suggesting continued caution. The focus remains on a handful of upcoming earnings releases, particularly from consumer and technology leaders. Broader market watchers will also be attuned to Federal Reserve communications and any additional trade policy news, with ongoing negotiations—especially with countries like China and India—potentially setting the tone for equity performance through the rest of the week.

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Stocks Close Lower on Weak Services Sector Data, Tariff Concerns

Stocks Close Lower on Weak Services Sector Data, Tariff Concerns

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