Dow Hits Records as Tech Stocks Falter Ahead of Powell, Zelensky Visits

On August 19th, 2025, the U.S. stock market is displaying a clear divide, with the Dow Jones Industrial Average reaching new record highs while the S&P 500 and Nasdaq Composite indexes pull back as big tech stocks come under pressure.

The Dow's latest strength is attributed to gains in industrials, healthcare, and other non-tech sectors, with UnitedHealth's surge on Berkshire Hathaway's increased stake contributing to the index's performance. Meanwhile, the Nasdaq's decline is linked to cooling momentum in mega-cap tech stocks like Amazon and Nvidia, as investors rotate away from growth names into more defensive plays.

Investors are closely watching two key events this week that could shape the market's trajectory. First, Ukrainian President Volodymyr Zelensky is set to visit the White House, accompanied by European leaders, to discuss conflict resolution and security commitments. This geopolitical development could have ripple effects on defense, energy, and currency markets.

Secondly, Federal Reserve Chair Jerome Powell is scheduled to deliver his final address at the Jackson Hole Economic Symposium. His remarks on the future of labor markets and policy direction could provide critical signals on whether the Fed is preparing to ease its stance or maintain a higher-for-longer interest rate environment.

As the market navigates these pivotal events, the resilience of the recent rally will be tested. While the Dow's record highs and the overall market's strong performance year-to-date underscore investor confidence, the fragile balance between geopolitical uncertainty, shifting central bank policy, and risk appetite will be closely monitored.