On August 5, 2025, the US stock market closed lower, influenced by tariff fears from President Trump's announcements and weaker-than-expected economic data, which heightened concerns about the economy's health.

Key indices performed as follows: The S&P 500 closed at 6,299.19, down 0.49% or 30.73 points; the Dow Jones Industrial Average ended at 44,106.54, declining 0.15% or 67 points; and the Nasdaq Composite finished at 20,916.55, dropping 0.65% or about 89 points.

Major movers included Palantir Technologies (PLTR), which surged approximately 5% following strong earnings results, while Caterpillar (CAT) saw declines due to falling profits amid weak equipment demand and tariff impacts. The technology sector showed mixed results, with chip stocks like Nvidia (NVDA) and AMD leading a partial rally in the sector.

Earnings releases highlighted Palantir's positive report, boosting its stock, whereas Caterpillar reported lower profits, contributing to broader market caution. No other major earnings were prominently noted for the day.

Key economic events centered around fresh data indicating softer economic conditions, combined with new tariff comments from President Trump, which weighed on investor sentiment and contributed to the day's downward price movements across major indices.

Price movement data reflected a pullback after an initial rebound attempt, with the broad market experiencing volatility driven by macroeconomic concerns and sector-specific news.