Wall Street volatility continues, Dow Jones drops 224 points

Lola Evans
08 Aug 2025, 01:43 GMT+10

NASDAQ Composite: Outperforming its peers, the tech-heavy index climbed 73.27 points, or 0.35 percent, to 21,242.70.
Dow Jones Industrial Average: The blue-chip gauge fell 224.48 points, or 0.51 percent, to 43,968.64.
Standard and Poor's 500: The benchmark index slipped 5.06 points, or 0.08 percent, to close at 6,340.00.

NEW YORK, New York - U.S. stocks fell Thursday, a day after recording strong gains. It has been a volatile week for U.S. stock markets as sentiment has shifted from positive to negative on a daily basis., particularl;y this week as President Donald Trump's new tariff world took shape, although he is still hiking new tariffs on selected goods and countries.

"There's a lot to digest around tariffs and trade right now, and usually when you see a lot of complication around a macro environment that's not immediately negative to the economy or profits, the market … puts it to the side," Anthony Saglimbene, Ameriprise chief market strategist told CNBC Thursday. "The market is just kind of concentrating on what it can discount right now, which is still a firm economic backdrop and strong earnings."

The firm economic backdrop took a slight dent on Thursday with the latest jobless claim figures. "In the week ending August 2, the advance figure for seasonally adjusted initial claims was 226,000, an increase of 7,000 from the previous week's revised level. The previous week's level was revised up by 1,000 from 218,000 to 219,000. The 4-week moving average was 220,750, a decrease of 500 from the previous week's revised average. The pre vious week's average was revised up by 250 from 221,000 to 221,250," the U.S. Department of Labor reported Thursday.

U.S. Stocks Mixed as Tech Lifts Nasdaq While Dow, S&P 500 Dip

In the end, Wall Street delivered a split performance on Thursday, with the Nasdaq Composite notching gains on tech strength while the Dow and S&P 500 edged lower amid lingering economic uncertainty.

Key Index Performances

Standard and Poor's 500: The benchmark index slipped 5.06 points, or 0.08 percent, to close at 6,340.00, with trading volume reaching 3.104 billion shares.
Dow Jones Industrial Average: The blue-chip gauge fell 224.48 points, or 0.51 percent, to 43,968.64, as losses in financial and industrial stocks weighed. Volume totaled 487.791 million shares.
NASDAQ Composite: Outperforming its peers, the tech-heavy index climbed 73.27 points, or 0.35 percent, to 21,242.70, buoyed by gains in megacap tech stocks. Volume hit 7.87 billion shares.

Market Drivers

The Nasdaq's resilience reflected investor optimism around artificial intelligence and semiconductor stocks, while the Dow's drop signaled caution ahead of Friday's key U.S. jobs report. Mixed economic data—including softer-than-expected services sector activity—kept broader market gains in check.

On Foreign Exchange Markets Thursday, Pound and Commodity Currencies Gain, Euro Slips

The U.S. dollar showed mixed performance in foreign exchange markets on Thursday, with gains against the euro and the yen but losses against the British pound and some commodity-linked currencies.

Key Moves in Major Currency Pairs

EUR/USD (Euro / US Dollar): The euro weakened slightly, falling 0.08 percent to 1.1649, as traders weighed European economic data.
USD/JPY (US Dollar / Japanese Yen): The dollar dipped 0.14 percent against the yen, trading at 147.14, as markets remained cautious ahead of key Japanese inflation figures.
GBP/USD (British Pound / US Dollar): Sterling was a standout performer, jumping 0.64 percent to 1.3432, supported by a 25 basis points clip in official interest rates by the Bank of England, in a 5 to 4 vote. .
USD/CAD (US Dollar / Canadian Dollar): The greenback edged up 0.08 percent to 1.3750.
USD/CHF (US Dollar / Swiss Franc): The dollar gained 0.11 percent against the Swiss franc, reaching 0.8066, as risk sentiment improved slightly.

Commodity Currencies Strengthen

The Australian and New Zealand dollars both advanced, with:

AUD/USD (Australian Dollar / US Dollar) rising 0.16 percent to 0.6512.
NZD/USD (New Zealand Dollar / US Dollar) climbing 0.48 percent to 0.5953, its highest level in over a week.

Market Outlook

Analysts attributed the dollar's mixed performance to shifting expectations on interest rate policies, with the Federal Reserve maintaining a cautious stance while other central banks signal potential shifts. The pound's rally reflected renewed confidence in the UK economy, while the euro remained under pressure amid concerns over Eurozone growth.

World Focus: European stock markets surge, Asian stocks edge up, on Thursday

Global stock markets delivered a mixed performance on Thursday, with some indices posting gains while others retreated amid varying economic signals.

North of the U.S. border, Canada's S&P/TSX Composite declined 159.60 points, or 0.57 percent, to 27,761.27, with energy and materials stocks dragging the index lower. Trading volume reached 220.113 million shares.

In Europe, the DAX (Germany) surged 268.14 points, or 1.12 percent, closing at 24,192.50, leading regional gains. France's CAC 40 rose 74.29 points, or 0.97 percent, to 7,709.32, while the EURO STOXX 50 climbed 68.78 points, or 1.31 percent, settling at 5,332.07. The BEL 20 (Belgium) also saw strength, adding 54.11 points, or 1.16 percent, to 4,711.34.

However, the UK's FTSE 100 bucked the trend, slipping 63.54 points, or 0.69 percent, to 9,100.77.

In Asia, Taiwan's TWSE Index was the standout performer, soaring 556.41 points, or 2.37 percent, to 24,003.77. South Korea's KOSPI advanced 29.54 points, or 0.92 percent, to 3,227.68, while in Hong Kong, the Hang Seng gained 171.00 points, or 0.69 percent, closing at 25,081.63.

Singapore's STI Index rose 30.45 points, or 0.72 percent, to 4,258.15.

In Japan the Nikkei 225 edged up 264.29 points, or 0.65 percent, to 41,059.15, while China's Shanghai Composite inched higher by 5.67 points, or 0.16 percent, to 3,639.67. However, in Indonesia, the IDX Composite dipped 13.57 points, or 0.18 percent, to 7,490.18.

Elsewhere, India's S&P BSE Sensex rose 79.27 points, or 0.10 percent, to 80,623.26, while Malaysia's KLSE gained 7.63 points, or 0.49 percent, to 1,549.11.

In the Oceania region, Australia's S&P/ASX 200 declined 12.30 points, or 0.14 percent, to 8,831.40, while the All Ordinaries slipped 9.10 points, or 0.10 percent, to 9,102.00.

In New Zealand the NZX 50 saw marginal gains, adding 6.94 points, or 0.05 percent, to 12,887.10.

In the Middle EastEgypt'sEGX 30jumped329.20 points, or0.93 percent, to35,809.40,. Israel'sTA125saw a modest increase of2.35 points, or0.08 percent, closing at2,978.76.