Trade Secrets

WTF Dailies August 21, 2025

Stock futures mostly fell as investors digested another difficult day for tech stocks and persistent uncertainty on Federal Reserve policy.

Sage Kakkat

20 Aug 2025 — 5 min read

Stock futures mostly fell as investors digested another difficult day for tech stocks and persistent uncertainty on Federal Reserve policy.
Stocks mostly slid Wednesday as a tech route deepened, with the Nasdaq falling 0.7%. Investors are flocking to other sectors amid mounting fatigue with Big Tech over concerns on AI spending.
Meanwhile, minutes from the Federal Reserve's last meeting showed most officials were primarily focused on persistent inflation even as the labor market showed signs of weakness. The release also indicated broad support for holding rates steady in July, despite two officials dissenting from the move.
Walmart (WMT) earnings on Thursday will cap a week of results from retail giants, and investors have high expectations. Earlier this week, Home Depot (HD) and Target (TGT) also reported earnings.
Wall Street is counting down to Friday, when Federal Reserve Chair Jerome Powell is set to deliver a speech at the Jackson Hole symposium in Wyoming. Economic data this month revealed policymakers face a tough choice on rate cuts in light of a faltering labor market and sticky inflation, so any clues as to what may come next will be in high focus.
Most Asian stocks advanced on Thursday as technology shares steadied from a recent rout, with Australian markets reaching record highs on positive business activity data for August.
Chinese shares also advanced, hitting multi-year highs amid growing optimism over an economic recovery and stimulus. Japanese markets lagged, as data showed a sustained, albeit narrowing contraction in the manufacturing sector.
Regional markets shrugged off middling overnight cues from Wall Street, as sustained selling in tech pressured Wall Street. Markets were also spooked by somewhat hawkish signals from the minutes of the Federal Reserve’s July meeting, which reiterated the bank’s wait-and-see approach on interest rate cuts.
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose 0.9% and 0.7%, respectively. The CSI 300 reached its highest level since October 2025, while the SSEC reclaimed an over nine-year peak.
Chinese markets were on a tear in August amid growing expectations that Beijing will dole out more economic support, especially as economic prints for July painted a dour picture.
South Korea’s KOSPI surged 1%, rebounding sharply from three days of steep losses as local technology stocks appeared to have found a bottom.
The KOSPI hit a 1-½ month low on Wednesday as local tech stocks traced a rout in their global peers, which was sparked by increasing doubts over the profitability of artificial intelligence.
Australia’s ASX 200 was among the better performers in Asia on Thursday, rising 1% to breach 9,000 points for the first time ever.
Australian markets were boosted by investors pivoting out of tech and into more economically sensitive sectors such as financials and commodities, which are the two biggest sectors in the ASX.
Positive purchasing managers index data also aided local stocks. Australia’s manufacturing and services sectors both grew at a faster pace in August from the prior month.
Hong Kong’s Hang Seng index was flat as losses in internet giant Baidu Inc (HK:9888) largely offset gains in other sectors.
Baidu (NASDAQ:BIDU) fell as much as 3% after logging underwhelming second-quarter earnings, as returns from its AI investments only partially offset a sustained decline in its core advertising business.
Beyond Baidu, several more major HK-listed Chinese firms are set to report earnings in the coming days. China Resources Power Holding (HK:0836) and Li Ning Co Ltd (HK:2331) are set to report later on Thursday, while China Petroleum (OTC:SNPTY) & Chemical Corp (HK:0386), also known as Sinopec (OTC:SHIIY), will report on Friday.
Among broader Asian markets, Japan’s Nikkei 225 and TOPIX indexes fell around 0.5% each, extending their fall from record highs hit earlier in the week.
PMI data showed Japan’s manufacturing sector shrank again in August, albeit at a smaller-than-expected pace. Service sector growth slowed.
India’s Nifty 50 index rose 0.3%, remaining above 25,000 points after retaking the level for the first time in over a month on Wednesday. Indian stocks, at least for now, appeared to have brushed off concerns over increased U.S. trade tariffs, as the government announced a host of reforms aimed at supporting the economy.
PMI data showed India’s manufacturing and services sectors grew more than expected in August, highlighting continued resilience in the economy as it grapples with increased U.S. trade tariffs and potential disruptions in its oil supplies.
Singapore’s Straits Times index was flat.

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