On August 5, 2025, U.S. stock markets experienced a significant rebound, with all three major indices recording their largest daily percentage gains since May 27. The Dow Jones Industrial Average rose 1.3%, or 585.06 points, closing at 44,173.64 points. The S&P 500 increased by 1.5%, or 91.93 points, finishing at 6,329.94 points. The Nasdaq Composite advanced 2%, or 403.45 points, ending at 21,053.58 points. This recovery followed a sharp decline on August 4, when markets were affected by concerns over the economy's health and new tariffs announced by President Donald Trump. nasdaq.com
The rebound was driven by gains in sectors such as communication services, consumer discretionary, materials, and utilities. Notably, the Consumer Discretionary Select Sector SPDR (XLY) gained 1.2%, the Communication Services Select Sector SPDR (XLC) added 1.9%, the Materials Select Sector SPDR (XLB) rose 1.3%, and the Utilities Select Sector SPDR (XLU) gained 1.8%. The CBOE Volatility Index (VIX) decreased by 14.03% to 17.52, indicating reduced investor anxiety. Overall, advancers outnumbered decliners on the NYSE by a 4.48-to-1 ratio, and on the Nasdaq, a 3.2-to-1 ratio favored advancing issues. This positive momentum suggests that investors are regaining confidence, though it's essential to monitor ongoing trade policies and economic indicators for future market direction. nasdaq.com