US Closing Bell | Dow ekes out gain as chip stocks sink Nasdaq

US Closing Bell
2 hours ago

Market

August 25, U.S. stocks closed mixed, with the Dow Jones Industrial Average rising 0.26% while the S&P 500 slipped 0.28% and the tech-heavy Nasdaq Composite fell 0.76%. A sharp pullback in semiconductor names offset modest strength in several megacaps, leaving the broader market narrowly lower. Higher Treasury yields and lingering rate-cut uncertainty prompted profit-taking in growth shares, although defensive buying in industrial and financial blue-chips helped the Dow nudge higher.

Chip rout leads decliners; inverse funds shine. Applied Optoelectronics fell 13.77% after a disappointing guidance update, while Direxion Semiconductor Bull 3x Shares dropped 7.83% and Silicon Motion sank 5.88% on demand worries. Micron Technology lost 5.83% and Advanced Micro Devices retreated 3.49% as investors rotated out of memory and AI-hardware plays; NVIDIA slid 2.91%. Tesla shed 3.81% amid fresh price-cut chatter. Offsetting some weakness, inverse play Direxion Semiconductor Bear 3x Shares jumped 7.91%, Meta Platforms added 1.66% on continued AI enthusiasm, and Apple edged up 0.32% as iPhone 18 supply chain reports signaled resilient demand.

Chinese EVs skid; crypto and foundry shares buck the trend. XPeng tumbled 8.53% and NIO fell 6.05% after a soft monthly delivery outlook, while PDD Holdings slipped 1.48% and Alibaba eased 0.73% amid ongoing China growth concerns. In semis, Taiwan Semiconductor declined 2.11%, but rival United Microelectronics gained 3.87% on upbeat quarterly revenue. Bitcoin proxy MicroStrategy climbed 2.83% as the cryptocurrency flirted with recent highs.

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