[KR Digest] August 6 Market Digest: US Stocks Decline Amid Rate Cut Worries

US stocks slipped as rate cut hopes and tariff worries battled investor optimism, while AI sector and consumer earnings moved markets. Investors focused on results from Opendoor Technologies, Amazon, and leading homebuilders as fresh macro concerns pressured equities. Gold declined as stronger U.S. job data and a firmer dollar weighed on safe-haven demand.

  • Opendoor Technologies Stock Sinks 22% on Weak 2025 Outlook, Macro Uncertainty

Opendoor Technologies shares plunged 22% after it warned of ongoing macro headwinds in its 2025 outlook, sparking investor concern about slowing revenue growth despite ongoing demand for residential real estate. The loss highlights risk for digital-first realty firms as rates and tariffs reshape the market.

  • Amazon Leads Retail Surge as Lower Yields Boost Consumer Sector in 2025

Amazon and peers rose over 1% as falling Treasury yields lowered borrowing costs, driving optimism for retail sales in 2025. Strong sector movement signals resilient consumer demand, important for investors tracking macro-driven retail and e-commerce stocks amid shifting monetary expectations.

  • Lennar, KB Home Hit New Highs with Homebuilder Rally on Slumping Mortgage Rates

Lennar and KB Home shares touched their highest since January as homebuilder stocks rallied on plunging borrowing costs. The move marks renewed confidence in US housing demand and benefits investors positioned in construction and real estate shares sensitive to interest rates.

  • Fed Rate Cut Bets Hit 87% for September 2025 Amid Soft Jobs and Inflation Data

Futures trading signals an 87% chance of a September Fed cut as jobs and inflation data softened, with two to three cuts expected by year-end. Investors await central bank clarity to recalibrate positions in rate-sensitive sectors and adjust risk as policy direction wavers.

  • Consumer Giants Disney, McDonald’s Drive Market Focus as Earnings Season Peaks

Major consumer brands Disney and McDonald’s headline earnings, drawing investor attention for signals on US household spending. Their results influence sentiment on cyclical consumer sectors and offer crucial insights as retail trends shape broader equity market performance in 2025.

  • Big Tech Capital Expenditures Extend Market Rally as AI and Data Centers Boom

Ongoing robust AI-driven capital spending by big tech firms fuels market gains amid record S&P 500 runs. Investors see continued outperformance for technology and data center equities as spending surges, underpinning sector leadership in 2025.

  • CME FedWatch Tool Highlights Volatility as Monetary Policy Uncertainty Spikes

CME FedWatch Tool data points to rising investor anxiety about the Fed’s next moves, reinforcing volatility across bonds and equities. The uncertainty around policy cadence prompts reallocation by investors focused on rate differentials and risk management.

  • Home Depot, Lowe’s Ride Housing Optimism as DIY Retail Stocks Rebound Sharply

Shares in Home Depot and Lowe’s climbed over 1% as investors bet on persistent home improvement demand and supportive financing. The strong rebound matters for investors exposed to retail and consumer discretionary stocks linked to housing market momentum.

  • Tariff Fears and China Deadline Loom Over Markets, Prompting Strategic Positioning

With new US tariffs set to take effect and a China trade deadline approaching, institutional and retail investors brace for volatility. The outcome’s impact on supply chains and margins drives hedging and sector-based allocation moves across global portfolios.

  • Gold Price Analysis

Price Action: Spot gold dipped to $3,291.46 as of August 6, 2025, down 0.64% from the previous close as stronger US jobs data and a firm dollar curbed demand.

  • Key Drivers:
    • Robust labor market readings boost yield outlook.
    • Firming US dollar pressures gold prices.
    • Tariff and trade policy risks moderate safe-haven appeal.
  • Bullish Catalysts:
    • Lingering geopolitical tensions support defensive assets.
    • Central bank gold buying persists, maintaining underlying demand.
  • Bearish Catalysts:
    • Rate cut probability tempers but not assures policy easing.
    • Reduced inflation pressures limit gold’s hedge role in near term.