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Stocks Teeter on the Edge as Economic Slowdown Looms
2 Aug
Summary
- Major U.S. indexes tumbled on fears of economic slowdown
- Microsoft, Northrop Grumman among most overbought stocks
- Centene, Molina Healthcare among oversold healthcare stocks
On August 2nd, 2025, the stock market experienced significant volatility, with major U.S. indexes tumbling due to concerns about a potential economic slowdown. The S&P 500 lost around 2.4%, the tech-heavy Nasdaq Composite fell 2.2%, and the Dow Jones Industrial Average shed 2.9% this past week.
The sell-off was triggered by weaker-than-expected July jobs data and President Donald Trump's modified tariff rates. According to a technical indicator, stocks that have seen gains in recent days could be at risk of sliding in the near future.
Among the most overbought stocks, Microsoft stands out. The software giant's shares jumped after it reported strong earnings and revenue for the fiscal fourth quarter, briefly pushing its market capitalization above $4 trillion. Northrop Grumman, a defense and aerospace company, also made the overbought list, with its shares reaching an all-time high and advancing nearly 25% so far in 2025.
On the other hand, healthcare giants Centene and Molina Healthcare are among the most oversold stocks this week, with their shares losing 8.7% and 6%, respectively. These companies could see potential upside in the coming days.
