A cautious start after a pullback
The U.S. market arrives at the next trading session after the S&P 500 closed down 0.6% on Tuesday. That decline came against a backdrop of corporate news that offered both reason for optimism and fresh uncertainty. Traders will be parsing quarterly results, policy signals about semiconductor funding, and retail behavior that could inform expectations for consumer spending into the remainder of the year.
Home Depot provides a nuanced retail signal
Home improvement retailer Home Depot reported mixed quarterly results that are likely to be closely watched by investors and equity strategists this morning. The company said total customer transactions fell 0.9% year over year, but average ticket size increased by 1.2%. Of particular note, big ticket purchases, defined as transactions over $1,000, rose 2.6% on a comparable basis. Shares rose roughly 3% as traders focused on the improvement in ticket size and management commentary that suggested customers are deferring larger projects rather than abandoning them.
Executives framed the quarter as one in which persistent high interest rates continue to constrain large remodeling projects. At the same time contractors are reporting that customers are postponing rather than canceling jobs. Management left full year guidance intact and characterized the expected impact of tariffs as producing modest price increases in some categories while not being broad based. These signals matter for several market constituencies. For retailers and discretionary names, the increase in ticket size and the resilience of smaller project demand indicate steady underlying consumption in certain segments. For industrials and housing related suppliers the mixed housing data raises questions about the timing and extent of a recovery in larger construction and remodeling activity.
Housing data paints a mixed picture
Government data released the same day showed housing starts at the quickest pace in five months in July. That could be read as a positive early sign for construction activity. Building permits, however, fell almost 3%, which is a leading indicator that suggests future activity may not sustain the recent pickup. Market participants will be weighing whether the faster pace of starts is a temporary response to individual projects or the beginning of broader momentum in home building. The combination of mixed housing signals with Home Depot’s comments suggests that investors should treat improvement as gradual and uneven rather than broad and immediate.
Intel jumps on potential federal equity stake
Semiconductor stocks drew attention after Intel surged about 7% following confirmation that the White House would seek a U.S. equity stake in the company in exchange for CHIPS Act funds. The report cited Commerce Secretary Howard Lutnick as confirming the intent. That development could alter the calculus for investors in chips and equipment suppliers depending on how terms are structured, what governance or capital constraints are involved, and how the market perceives the durability of federal support. For the session ahead expect elevated trading in semiconductor names as investors price both the immediate capital relief for Intel and the precedent it might set for federal intervention in strategic industries.
Robinhood expands into prediction markets with regulatory risk
Robinhood announced it will add NFL and college football prediction markets, reflecting a push to broaden product lines and user engagement ahead of the fall sports season. The company first added prediction market access via Kalshi in March and today’s expansion positions Robinhood to capture demand in a category that is already popular among U.S. sports bettors. Regulatory questions remain central to the story. Kalshi has fought to keep sports markets alive through the Commodity Futures Trading Commission, and state level licensing requirements could complicate growth. Traders should expect Robinhood shares to be sensitive to updates about regulatory outcomes as well as early user adoption metrics for the new markets.
Media, tech and consumer crosscurrents
Other corporate headlines could add to intraday volatility. Meta is reported to be reorganizing its AI operations into four groups focused on research, superintelligence, infrastructure and product work. That kind of restructuring could influence investor views on capital allocation in AI related budgets across major tech platforms. Nexstar offered a big media consolidation story with its agreement to acquire Tegna for $6.2 billion. The deal would extend Nexstar’s reach if regulators do not force divestitures. Best Buy is expanding its e-commerce proposition by launching a third party marketplace, aligning its strategy more directly with platforms such as Amazon and Walmart.
Biotech watchers will also note that Viking Therapeutics reported disappointing results for an obesity pill. That news comes after recent weaker results from other companies investing in oral GLP-1 science. The biotech group may remain under pressure until there is clearer evidence that oral formulations can match the efficacy observed in injectable GLP-1 treatments.
Consumer collectible momentum and wider market implications
An unusual but notable consumer success story comes from Pop Mart International Group. The company’s popular Labubu plush toy helped drive sales up 204% and net income up 397% in the first half of 2025 according to Bloomberg coverage. While this is a niche phenomenon it does reflect the continued ability of branded collectibles and culture driven products to generate outsized growth in specific categories. Retail investors looking for thematic picks may take an interest in names connected to collectibles, licensing, and direct to consumer engagement.
What traders should watch today
Market participants should track a few key items through the session. First, movement in Home Depot and other home improvement related stocks will be important for gauging how investors view consumer durability in renovation spending. Second, semiconductors will likely be active as traders price the impact of a potential federal equity stake in Intel and consider the implications for CHIPS Act deployment. Third, Robinhood and fintech names could respond to adoption signals for new prediction markets and to regulatory headlines related to Kalshi’s legal battles. Fourth, any fresh detail on tariffs or management commentary about pricing will matter for retailers and supply chain exposed companies.
Finally, with the S&P 500 down the prior session, market sentiment will be sensitive to news flow that either reinforces recession risk or suggests pockets of resilience. Investors are likely to reward concrete signs that consumers are spending on mid size projects and that policy interventions are adding durable support to strategic industries. Conversely, news that undermines those narratives could extend the pullback.
Expect a day in which headline driven moves determine sector leadership. Stocks tied to semiconductors, home improvement and platform led commerce may see the most volume and price action. Traders who focus on those areas will want to monitor earnings commentary, housing data revisions, policy signals about CHIPS funding, and regulatory developments around prediction markets. These threads should set the tone for the session and influence positioning for the days ahead.
