Wednesday Afternoon Coffee - Markets Update - 20 Aug 2025 - Tech Rout Deepens on Wall Street; European Stocks Steady

The Trade Academy Team
Aug 20
2 min read

Markets Update: U.S. equities slipped Wednesday as a renewed selloff in technology shares weighed on markets, while European benchmarks held firm and the spotlight turned to this week’s Jackson Hole central banking symposium.

Global Markets Roundup: 2o Aug 2025

The S&P 500 fell 0.2% and the Nasdaq Composite dropped 0.7%, extending Tuesday’s steep losses, though both clawed back from heavier declines earlier in the day. The Dow Jones Industrial Average eked out a 0.04% gain.

Analysts pointed to stretched valuations, profit-taking, and a broad risk-off mood as drivers behind the downturn in tech.

Investor unease has also been stirred by U.S. President Donald Trump’s growing influence over the sector. Commerce Secretary Howard Lutnick is reviewing potential government equity stakes in Intel and other chipmakers, sources told Reuters. Washington has already struck revenue-sharing deals with Nvidia and AMD, a rare intervention in private industry.

The sector’s biggest names—Apple, Alphabet, and Amazon—each shed more than 1%.

Europe Advances as Tech Lags in U.S.

European markets were steadier. The pan-European STOXX 600 rose 0.25%, while Britain’s FTSE 100 surged 1.17% to a record high, lifted by consumer and healthcare stocks.

Dollar Softens, Bond Yields Steady

The U.S. dollar eased after Trump urged Federal Reserve Governor Lisa Cook to resign. The Dollar Index (DXY) dipped slightly, while Treasury yields held mostly unchanged: the 10-year yield at 3.29% and the 2-year down to 3.74%.

Attention is fixed on the Federal Reserve’s August 21–23 meeting in Jackson Hole, where Fed Chair Jerome Powell will deliver a key speech Friday. Traders are nearly fully pricing in a September rate cut.

Elsewhere, Sweden’s central bank held rates steady, while New Zealand’s cut its benchmark to a three-year low and signaled more easing, sending the kiwi down over 1%.

U.K. Inflation Surprises, Bonds Rally

Data showed British consumer prices rose 3.8% in July, the fastest pace among G7 economies. Sterling initially firmed but gains quickly faded. Gilts rallied as inflation came in below worst-case fears, with the 10-year gilt yield down 7 basis points to 4.68%.

Commodities: Oil Gains, Gold Hits $3,348

Oil climbed about 1% after U.S. inventories posted a sharper-than-expected draw, while sanctions on Russian crude remained in place amid Ukraine peace talks.

Spot gold rose 1% to $3,348.70 an ounce, extending its record-breaking run.

On agricultural markets, soybeans edged up 3½ cents to $10.37½ a bushel, corn added 2¼ cents to $4.05½, and wheat rose 8½ cents to $5.29¾.

Looking forward refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.

General news - Information source from multiple newswires.

The article and the data is for general information use only, not advice!

The Trade Academy Team