Tech Weakness Drags Down U.S. Averages for the Fifth Session In a Row

Barry Adams
21 Aug, 2025
New York City

The U.S. benchmark indexes extended losses to the fifth session in a row, driven by a sell-off in tech stocks. 

The S&P 500 index declined 0.2%, and the tech-heavy Nasdaq Composite decreased 0.3%, as investors booked profit in high-flying tech stocks. 

The leading technology stocks have rebounded as much as 80% from the lows reached on April 21, after worries of a global trade war receded. 

Despite the sharp rebound, tariff uncertainty looms, and the de minimis exemption of $800 per day is set to expire today. 

 

U.S. EU Shed More Light on Tariff Details, High Auto Duties to Stay for Now 

The U.S. and the European Union announced more details about the trade framework agreed upon in July. 

The U.S. is committed to “apply the higher of either the U.S. Most Favored Nation (MFN) tariff rate or a tariff rate of 15%, comprised of the MFN tariff and a reciprocal tariff, on originating goods of the European Union.” 

Most goods shipped from the European Union will attract 15% tariffs, including lumber, pharmaceuticals, and semiconductors. 

The U.S. tariffs on vehicles shipped from the European Union could drop to 15% from 25% once the EU introduces legislation to remove all tariffs on U.S. industrial goods. 

In addition, the European Union will eliminate tariffs on all U.S. industrial goods and provide "preferential market access" to a wider range of U.S. agricultural products and seafood.

 

Continuing Jobless Claims Near Two Million Mark

Initial jobless  claims for the week ending on August 16 advanced to 235,000, an increase of 11,000 from the previous week, according to the U.S. Department of Labor. 

Continuing claims, which lags by one week, rose by 30,000 to 1.97 million, and reached the highest level since November 6, 2021. 

The jobless claims report provides another data point to policymakers, and confirms the muted hiring activity amid a slowdown in the labor market as businesses struggle with uncertainty stemming from the constantly changing U.S. trade policy. 

 

U.S. Stock Movers 

Coty Inc. dropped 21% to $3.85, and the cosmetic company reported weaker-than-expected fiscal first-quarter results.

In addition, the retailer said sales and earnings in the first half are likely to remain depressed before they recover in the second half. 

Walmart Inc. decreased 3.2% to $99.36, and the retailer's fiscal second-quarter earnings fell short of market expectations.