Market Wrap | U.S. Stock Market Sees Mixed Performance Amid Fed's AI and Crypto Stance

On August 19, 2025, the U.S. stock market saw mixed performance with the S&P 500 index falling 0.59%, the Dow Jones Industrial Average rising 0.02%, and the Nasdaq Composite dropping 1.46%. The Federal Reserve's evolving stance on AI and cryptocurrencies, which may influence future regulatory approaches and market dynamics, is the most relevant macroeconomic news for the U.S. stock market today. Additionally, Deutsche Bank's critique of U.S. Treasury Secretary Scott Besant's interest rate views suggests ongoing debate about appropriate monetary policy levels, potentially impacting investor sentiment and market volatility.

The technology sector underperformed the broader S&P 500 index, while the utilities, healthcare, consumer staples, energy, materials, industrials, real estate, and financial sectors all saw gains.

The Home Depot shares rose 3.17% today, driven by improved same-store sales growth throughout the second quarter. The company's strong performance in retail sales has bolstered investor confidence, leading to a significant increase in its stock price.

Gaxos shares surged over 87%, driven by the launch of Art-Gen.AI, an advanced AI image and video creation platform. PainReform's stock rose nearly 77%, following the acceptance of DeepSolar into the NVIDIA Connect Program, which has boosted investor confidence due to potential advancements in AI-driven solar forecasting. Lm Funding America's stock dropped over 42%, as the company's heavy reliance on capital raises has raised concerns about its financial stability. Viking Therapeutics' shares fell over 42%, as concerns over the drug's 20% discontinuation rate overshadowed promising results.

The U.S. Department of Commerce is advancing the acquisition of a 10% stake in Intel, with Secretary Lutnick working on finalizing the details. This move involves converting approved federal subsidies into equity. Meanwhile, SoftBank announced a $2 billion equity investment in Intel, causing Intel's stock to rise by 10%. Additionally, Federal Reserve Governor Michelle Bowman emphasized the need for banks and regulators to embrace AI and cryptocurrencies to maintain their economic roles. S&P Global Ratings reported that U.S. public pension funds are expected to outperform typical investment returns due to strong market performance, with pension yields projected between 11% and 12%, driven by a surge in stock prices.