U.S. equities experienced a robust rally on Tuesday, August 12, 2025, with major indexes closing at or near record highs. The surge was primarily fueled by a Consumer Price Index (CPI) report that came in largely as expected, reinforcing market hopes for an imminent interest rate cut by the Federal Reserve. This positive inflation data overshadowed lingering concerns about global trade tensions and set a bullish tone for the day's trading.
Market Performance Recap
The benchmark S&P 500 (SPX) climbed 1.1% to close at 6,445.76, marking its first record high since late July. The tech-heavy Nasdaq Composite (IXIC) led the gains, jumping 1.4% to hit its third record close in four days, finishing at 21,681.90. The Dow Jones Industrial Average (DJI) also saw significant upward momentum, adding 1.1% to reach 44,458.61, putting it within striking distance of its own December record. The broader market also saw strength, with the Russell 2000 index of smaller companies rising a notable 3% to 2,282.78. This strong performance on Tuesday followed a slightly lower finish on Monday, where all three major indexes closed in negative territory.
The catalyst for today's market ascent was the release of the July CPI report. Annual inflation held steady at 2.7%, a figure slightly better than the 2.8% economists had anticipated. While core inflation, which excludes volatile food and energy prices, registered a slightly higher-than-expected increase of 0.3% month-over-month and 3.1% year-over-year, the overall reading was interpreted positively by investors. This data has intensified expectations for a Federal Reserve rate cut, with the market now pricing in a high probability (between 84.5% and 94%) of a 25-basis point reduction at the September FOMC meeting.
Upcoming Market Events
Looking ahead, market participants will closely monitor several key economic data releases and corporate earnings reports. The Producer Price Index (PPI) is scheduled for release on Thursday, which will provide further insights into inflationary pressures at the wholesale level. Beyond this week, the Federal Reserve's important Jackson Hole Symposium for Economic Policies, set for August 21-23, will be a critical event, likely setting the tone for the September FOMC meeting.
On the corporate earnings front, a busy week continues. Major companies slated to report their quarterly results in the coming days include Cisco Systems (CSCO), Alibaba Group (BABA), Applied Materials (AMAT), NetEase (NTES), and Deere & Company (DE), all expected between August 13-14. Additionally, PVH Corp. (PVH), the parent company of Calvin Klein and Tommy Hilfiger, announced it would release its second-quarter 2025 earnings results after the market closes on Tuesday, August 26, 2025.
Major Stock News and Company Spotlights
Several individual stocks made headlines today with significant price movements and corporate announcements:
Technology giants largely contributed to the market's upward trend. Meta Platforms (META) and Broadcom (AVGO) both climbed approximately 3%, while Microsoft (MSFT), Apple (AAPL), and Alphabet (GOOGL) each tacked on more than 1%. Nvidia (NVDA) and Amazon (AMZN) also saw modest gains, with Tesla (TSLA) inching higher.
Chipmaker Intel (INTC) was a standout performer, jumping 5.5% today, adding to a 3.5% gain from Monday. This positive momentum followed a meeting between CEO Lip-Bu Tan and President Donald Trump at the White House. The broader semiconductor sector remains in focus after Nvidia (NVDA) and Advanced Micro Devices (AMD) reportedly agreed to pay 15% of their China chip revenues to the U.S. government in exchange for export licenses, a development following President Trump's executive order extending China's tariff deadline by 90 days.
In other notable corporate news, Swiss sneaker maker On Holding (ONON) surged over 10% in pre-market trading after announcing better-than-expected second-quarter results and raising its guidance, driven by strong direct-to-consumer sales. Conversely, Cardinal Health (CAH) dropped 12.4% despite reporting stronger-than-expected profit for its latest quarter, as its revenue fell short of forecasts and market expectations were particularly high for the stock.
Chipotle Mexican Grill (CMG) saw its stock rise 3.3% in early trading following an upgrade to overweight by Piper Sandler, which sees potential for a 20% increase in share price as the company recovers. Meanwhile, advertising technology company PubMatic (PUBM) saw its shares fall more than 30% in pre-market trading after beating Q2 profit and sales expectations but issuing a cautious full-year revenue outlook. 3D printer-maker 3D Systems (DDD) experienced a slight pre-market uptick despite missing on both top and bottom lines for its Q2 earnings. Stablecoin issuer Circle Internet Group (CRCL) also saw its stock up over 12% pre-market, despite reporting a Q2 loss. AI software firm BigBear.ai (BBAI) plunged more than 30% in pre-market trading after missing revenue estimates and cutting its 2025 revenue outlook.
On Monday, TKO Group Holdings (TKO), owner of the Ultimate Fighting Championship, surged over 10% following the announcement of a seven-year, $7.7 billion exclusive UFC broadcasting rights deal with Paramount Skydance (PSKY).
Post-Market Earnings Announcements
Several companies reported earnings after the market close on Monday, August 11, 2025, or before the market open on Tuesday, August 12, 2025. Oklo Inc. (OKLO) reported its second-quarter 2025 results, with a consensus earnings per share forecast of $-0.12. Life360, Inc. (LIF) also reported its second-quarter earnings, with analysts expecting $0.02 per share. Plug Power, Inc. (PLUG) released its second-quarter results, with a consensus EPS forecast of $-0.15. BigBear.ai Holdings (BBAI) missed its first-quarter consensus earnings per share by a significant margin.
For Tuesday, August 12, 2025, several companies were slated to report earnings, including Venture Global (VG), which reported robust second-quarter results with revenue nearly tripling and increased liquefied natural gas (LNG) cargo exports. Online retailer Hour Loop (HOUR) also announced increased net income despite a slight revenue decline for its second quarter. Other companies expected to report today included US Energy (USEG), NeoGenomics (NEO), TechTarget (TTGT), Kopin (KOPN), Madison Square Garden (MSGS), Paysafe (PSFE), Rigetti Computing (RGTI), and CAVA Group, Inc. (CAVA).
The positive reaction to the CPI data today suggests that investors are increasingly confident in the Federal Reserve's path toward interest rate adjustments, providing a significant boost to market sentiment. However, ongoing geopolitical developments and upcoming economic data will continue to shape market direction in the days and weeks ahead.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.