U.S. stock markets sag, Dow Jones drops 153 points

22 Aug 2025

NEW YORK, New York – Profit-taking continued to weigh on U.S. stock markets on Thursday with the technology sector again taking the most heat.

“It’s not a surprise to see some investors taking profits in tech stocks, which have had an incredibly strong run, with some up over 80 percent since the early April lows,” Carol Schleif, chief market strategist at BMO Private Wealth told CNBC Thursday. “Market volume in general is typically quite sparse in late August leading to wider swings than fundamentals would warrant,” she said.

The broad S&P 500 (^GSPC) led the decline, falling 25.61 points to close at 6,370.17, a decrease of 0.40 percent. The sell-off was widespread, affecting various sectors and signaling a cautious mood among investors.

The blue-chip Dow Jones Industrial Average (^DJI) also finished in the red, dropping 152.81 points to settle at 44,785.50, a loss of 0.34 percent. The tech-heavy NASDAQ Composite (^IXIC) mirrored the decline, shedding 72.54 points to end the day at 21,100.31, also down 0.34 percent.

The simultaneous decline across all three major U.S. indexes suggests a broad-based pullback, potentially driven by profit-taking after a strong run and positioning ahead of upcoming economic reports that could influence the Federal Reserve’s policy outlook.

Analysts suggest that market participants are in a holding pattern, carefully weighing resilient economic data against the path of interest rates. All eyes are now turned to Friday’s key jobs report for further direction on the health of the economy.

U.S. Dollar Strengthens Against Major Rivals on Thursday

The U.S. dollar flexed its muscles in foreign exchange markets on Thursday, posting broad gains against a basket of major currencies as market sentiment continued to favor the greenback.

The dollar’s strength was most pronounced against the Japanese yen. The USD/JPY pair surged to 148.39, a significant gain of 0.73 percent. This move underscores the widening policy divergence between the hawkish U.S. Federal Reserve and the Bank of Japan, which maintains its ultra-loose monetary stance despite commentary to the contrary.

The euro and British pound both softened against the resilient dollar. The EUR/USD pair was a notable decliner, falling 0.40 percent to trade at 1.1604. Similarly, the GBP/USD pair dropped 0.31 percent to 1.3414 as the markets continued to assess the UK’s economic outlook.

The dollar also advanced against its Canadian counterpart. The USD/CAD pair rose 0.24 percent to reach 1.3905, attributed to the dollar’s broader strength.

In a significant move, the U.S. dollar rallied sharply against the Swiss franc, a traditional safe-haven currency. The USD/CHF pair climbed 0.65 percent to 0.8090, signaling a strong risk-on appetite among investors who favored the yield-bearing dollar.

The commodity-linked Australian and New Zealand dollars continued to lose ground against the greenback, after Wednesday’s sharp falls, particularly by the kiwi. The AUD/USD pair fell 0.20 percent to 0.6420, while the NZD/USD pair saw a more modest decline of 0.11 percent to 0.5816.

The dollar’s broad-based rally is largely fueled by expectations that the U.S. Federal Reserve will keep interest rates higher for longer to combat inflation, making dollar-denominated assets more attractive to investors seeking yield. This dynamic has created a strong bullish trend for the currency, pressuring its major peers across the board.

Global Markets Deliver Mixed Bag; Asia-Pacific Shares Mostly Higher

World markets presented a fractured performance in Thursday’s trading, with strength in the Canadian, Asian and Pacific regions contrasting with a more subdued and mixed session across UK, European and other global bourses.

Canada’s S&P/TSX Composite Index (^GSPTSE) delivered a standout performance, climbing 176.67 points to finish at 28,055.43, a solid gain of 0.63 percent. The rally was likely fueled by strength in the energy and materials sectors

The UK’s FTSE 100 (^FTSE) edged up 21.06 points to 9,309.20, a gain of 0.23 percent.

In Germany the DAX (^GDAXI) saw a minimal increase, adding 16.37 points (0.07 percent) to close at 24,293.34. However, France’s CAC 40 (^FCHI) fell 34.74 points to 7,938.29, a decline of 0.44 percent.

The pan-European EURO STOXX 50 (^STOXX50E) dipped 0.19 percent. Belgium’s BEL 20 (^BFX) was a positive standout in the region, climbing 16.59 points to 4,835.48, up 0.34 percent.

The Asia-Pacific region was a pocket of strength. Australia’s S&P/ASX 200 (^AXJO) jumped 101.10 points, or 1.13 percent, to 9,019.10. The broader All Ordinaries index (^AORD) gained 106.80 points (1.16 percent) to 9,284.20. In New Zealand the S&P/NZX 50 (^NZ50) also posted a strong gain, rising 122.77 points to 13,194.07, up 0.94 percent.

South Korea’s KOSPI (^KS11) advanced 11.65 points (0.37 percent), while in Taiwan the TWSE Index (^TWII) was a top performer, surging 336.69 points, or 1.43 percent, to 23,962.13.

Other Asian markets were more muted Thursday. Hong Kong’s Hang Seng Index (^HSI) slipped 61.33 points (-0.24 percent).

In Japan the Nikkei 225 (^N225) retreated from recent highs, falling 278.38 points to 42,610.17, a loss of 0.65 percent. Indonesia’s IDX Composite (^JKSE) declined 53.11 points (-0.67 percent), while Malaysia’s FTSE Malaysia KLCI (^KLSE) gained a modest 4.66 points (0.29 percent). In India, the BSE Sensex (^BSESN) eked out a gain of 142.87 points (0.17 percent) to close above the 82,000 mark.

In the EMEA region, Israel’s TA-125 (^TA125.TA) advanced 20.93 points (0.69 percent). In Egypt the EGX 30 (^CASE30) went against the trend, falling 109.50 points to 35,622.30, down 0.31 percent.

South Africa’s Top 40 (^JN0U.JO) gained 35.73 points (0.63 percent).