US stock markets fell yesterday amid tariff concerns & disappointing economic data

US indices fell yesterday, 5^th August, 2025,  erasing gains from Monday’s rally, as tariff concerns and disappointing economic data weighed on markets. Losses were broad-based, with growth sectors leading declines following weaker-than-expected data.

President Trump’s threats to impose new tariffs on India and pharmaceuticals, combined with broader trade policy uncertainty, unsettled investors. The ISM Services PMI missed forecasts at 50.1, raising fresh concerns about economic momentum.

Despite the economic slowdown signals and Wednesday’s decline, equity losses in US markets were limited by high market expectations of Federal Reserve rate cuts beginning in September.

The U.S. trade deficit narrowed in June on reduced consumer goods imports, with the trade gap with China hitting its lowest level in over 21 years.

Post-earnings movers were mixed: Palantir surged 7% on better-than-expected results, while AMD and Snap declined after missing revenue or profit targets. Housing and transportation stocks also saw notable strength on the day, while utilities and semiconductor stocks moved to the downside.

Nifty managed to close, yesterday, 6^th August, 2025, above its 100 DEMA, currently at 24595. The recent swing low of 24,535 is expected to serve as immediate support. On the upside, 24,785 and 24,950 are two key hurdles for Nifty.

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Source: HDFC Securities Prime Research