MARKET SNAPSHOT

U.S. stocks were mixed after a drop in big tech and communications services shares dragged the broader market lower. Treasury yields fell ahead of a focus on the Fed in the days to come. The dollar pared losses, while gold settled lower. Oil futures also lost ground, with U.S. efforts to end the Russia-Ukraine war reducing the likelihood of stepped up sanctions on Russian oil in the near term.

MARKET WRAPS

EQUITIES

U.S. stocks slipped thanks to a fall in tech shares, even while a majority of the other sectors were climbing.

The Dow Jones Industrial Average rose less than 0.1%, boosted by Home Depot, but the S&P 500 Index and tech-heavy Nasdaq Composite both fell by 0.6% and 1.5%, respectively. U.S. indexes are near all-time highs, but have notched only minor moves in recent days.

The S&P 500 was driven lower by sell-off in some of this summer's biggest winners, such as Palantir and Advanced Micro Devices. Investors were bidding up some of this year's less favored sectors, such as utilities and healthcare, instead. Nasdaq was dragged lower by declines in all Mangificent Seven names.

Stocks in Asia were largely down.

In China, stocks were flat. The Shanghai Composite Index held steady, while the Shenzhen Composite Index fell 0.1% and the ChiNext Price Index ended 0.2% lower.

Stocks in Hong Kong fell. The Hang Seng Index dropped 0.2%.

Japanese stocks slipped, with the Nikkei Stock Average falling 0.4%.

In Australia, stocks fell, as the S&P/ASX 200 Benchmark Index dropped 0.7%.

Stocks also fell in New Zealand. The S&P/NZX 50 Index slipping 0.3%.

COMMODITIES

Oil futures lost ground, with U.S. efforts to bring Russia's and Ukraine's leaders together to end their war reducing the likelihood of stepped up sanctions on Russian oil in the near term.

"We may not get peace in Ukraine, but the current developments offer some encouragement," Arlan Suderman of StoneX said.

"Peace in Ukraine could save a lot of lives, but it could also make the movement of commodities cheaper in global trade," he added. "Crude oil supplies could increase, while the cost of shipping wheat and corn out of the region could also decline, impacting global prices."

WTI for September settled down 1.7% at $62.35 a barrel ahead of tomorrow's expiration. October Brent fell 1.2% to $65.79.

Front month gold settled nearly 0.6% lower at $3313.40.

TODAY'S TOP HEADLINES

Housing Starts Climbed Unexpectedly in July

Home-building increased last month, contrasting with expectations that it would fall amid a fragile housing market. Here are the main takeaways from the Commerce Department's report released Tuesday:

Write to Ed Frankl at edward.frankl@wsj.com

Fed's Bowman Urges Less 'Cautious Mindset' on Crypto

The central bank's top banking watchdog is urging regulators to leave their "overly cautious mind-set" on cryptocurrency, blockchain, and artificial intelligence behind.

Speaking at the Wyoming Blockchain Symposium on Tuesday afternoon, Federal Reserve Governor Michelle Bowman said that she will work with financial institutions to quickly adapt to new technologies.

This marks a departure from previous regulators, whom she described as overly cautious. "Despite this past inertia, change is coming," Bowman said.

S&P Affirms U.S. Credit Rating as Tariff Revenue Expected to Plug Fiscal Leaks

S&P Global Ratings has affirmed the credit ratings of the U.S., saying it expects robust revenues from the Trump administration's newly instituted tariff regime to help offset the expected fiscal deterioration resulting from recent legislative changes.

The sovereign credit ratings were held at AA+/A-1+, with the outlook remaining stable.

"The stable outlook indicates our expectation that although fiscal deficit outcomes won't meaningfully improve, we don't project a persistent deterioration over the next several years," the ratings company said.

Activist Ancora Pressures Railroad Operator CSX to Explore Deal

Activist investor Ancora Holdings told railroad operator CSX it should pursue a deal with a rival or replace its chief executive if it doesn't, according to a letter reviewed by The Wall Street Journal. The hedge fund said it is prepared to launch a proxy fight for board seats later this year if CSX doesn't heed its advice.

The pressure comes just weeks after Union Pacific struck a $71.5 billion deal to acquire Norfolk Southern to create the first transcontinental railroad operator in the U.S.

Ancora had agitated at Norfolk Southern, landing four seats on its board, ahead of the tie-up. Following the deal announcement, industry watchers have zeroed in on what could come of CSX, which like Norfolk is a major East Coast carrier.

Google Offers to Tweak Play Store Terms to Stave Off EU Fine

Alphabet's Google has offered to change terms and conditions for developers using its Play Store in a bid to stave off a potential fine under European Union tech rules.

Google said in a blog post on Tuesday that it would alter fees it charges developers for app downloads and make it easier to lead users to deals and offers outside of its own app store.

However, at the same time, the company warned that links leading outside the Play Store can expose users to security threats.

Homeowners Are Doing Small Projects but Deferring Big Ones, Home Depot Says

Tariffs will soon start hitting some price tags at Home Depot.

The price increases will hit as shoppers are thinking carefully about their spending. Consumers are holding off on larger home-improvement projects because of higher interest rates and economic uncertainty, but they are moving ahead with smaller projects that they can pay for with cash, Chief Financial Officer Richard McPhail said in an interview.

The company's comparable same-store sales rose 1% in the latest quarter, though transactions fell 0.9%. Home Depot shares were up more than 3% Tuesday.

Flight Attendants Win Boarding Pay, Four-Year Deal, Ending Air Canada Strike

Union leaders for Air Canada's flight attendants said members would return to work after a deal was reached to end a three-day strike that grounded hundreds of flights, hitting around 500,000 customers.

The union said the tentative deal, reached after more than nine hours of talks with the help of a mediator, marked "transformational change" for its members after they disobeyed two federal return-to-work orders. "Unpaid work is over," the Canadian Union of Public Employees said in a statement, referencing the issue of boarding pay that stuck out as a significant obstacle toward an agreement.

"When our rights were taken away, we stood strong, we fought back-and we secured a tentative agreement that our members can vote on," said the union, also known as CUPE.

Expected Major Events for Wednesday

02:00/NZ: Reserve Bank of New Zealand Monetary Policy Statement

05:00/JPN: Jul Convenience Store Sales

06:30/INA: Aug Bank Indonesia Board of Governors meeting and decision

08:00/TAI: Jul Export Orders

08:20/TAI: 2Q Balance of Payments

09:59/CHN: Jul FDI Foreign Direct Investment

09:59/CHN: People's Bank of China loan prime rate (LPR) announcement

21:00/SKA: Jul PPI

22:45/NZ: Jul Overseas Merchandise Trade

23:00/AUS: Aug Australia Flash PMI

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(END) Dow Jones Newswires

August 19, 2025 16:50 ET (20:50 GMT)

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