U.S. stock futures are broadly higher on Wednesday, August 13, 2025, signaling a continuation of the bullish momentum that propelled major indexes to record highs yesterday. This upbeat sentiment is primarily driven by mounting expectations that the Federal Reserve will initiate interest rate cuts as early as September, following a milder-than-expected July Consumer Price Index (CPI) report.
Premarket Activity and Futures Movements
As the trading day commences, premarket activity indicates a strong opening for Wall Street. S&P 500 futures (SPX) are up approximately 0.2% to 0.3%, hovering near fresh record highs, reflecting investor confidence. Similarly, Nasdaq 100 futures (NDX) are showing comparable gains of 0.2% to 0.3%, largely fueled by the continued strength in technology shares. Dow Jones Industrial Average futures (DJIA) are also trading higher by around 0.2% to 0.3%, supported by rate-sensitive sectors and industrial names. This widespread positive movement in futures underscores a "risk-on" sentiment across global markets, bolstered by the prospect of a more accommodative monetary policy from the Federal Reserve.
Major Market Indexes: A Look Back at Tuesday's Record Rally
Tuesday's trading session saw a significant rally across all major U.S. stock indexes. The benchmark S&P 500 (SPX) closed at a new record high of 6,445.76, marking a 1.1% gain. The tech-heavy Nasdaq Composite (IXIC) also achieved a new closing high, surging 1.4% to finish at 21,681.90. Not to be outdone, the Dow Jones Industrial Average (DJIA) advanced 1.1% to close at 44,458.61. This robust performance was a direct response to the July Consumer Price Index (CPI) data, which came in lower than expected, easing inflation concerns and solidifying market bets on an imminent Fed rate cut.
Upcoming Market Events and Economic Outlook
The economic calendar for Wednesday, August 13, is relatively light, with no major U.S. economic reports scheduled for release. However, investors are keenly awaiting Thursday's Producer Price Index (PPI) data, which will offer further insights into wholesale inflation trends. Beyond this week, market participants will continue to monitor upcoming data releases on consumer spending, employment, and industrial production, all of which will influence the Federal Reserve's policy decisions. The highly anticipated Jackson Hole Symposium later in August also remains a key event that could shape market sentiment.
The primary focus remains on the Federal Reserve, with the market now pricing in a high probability—nearly 94% to 98% according to various sources—of a 25-basis-point interest rate cut in September. This expectation stems from the recent tame inflation figures and signs of a softening labor market, which could provide the Fed with the necessary room to ease monetary policy. Investors will be paying close attention to any comments from Fed officials scheduled to speak today for further clues on the central bank's stance.
Major Company News and Stock Movements
Several companies are making headlines with their latest corporate announcements and earnings reports:
- Cava Group (CAVA) saw its stock collapse by 22% in premarket trading after reporting weak second-quarter revenue growth and lowering its same-store sales guidance for fiscal 2025.
- Similarly, CoreWeave (CRWV), an AI cloud computing company, plunged 10.3% in premarket after missing Q2 earnings estimates and reporting a wider-than-expected loss, despite exceeding sales expectations.
- Rigetti Computing (RGTI) also experienced a drop in its stock price after missing both Q2 sales and earnings expectations.
- Cardinal Health Inc. (CAH) shares tumbled 7.2% following a miss on its fourth-quarter fiscal 2025 revenue estimates.
- On the positive side, Sea Limited (SE) shares jumped 19.1% after the company reported strong second-quarter revenues that surpassed analyst estimates.
- Circle Internet Group (CRCL) saw its shares rise 1.3% after posting second-quarter revenues that exceeded expectations.
- On Holding AG (ONON) climbed 9% after outpacing its second-quarter revenue estimates.
- Elbit Systems (ESLT) reported robust second-quarter 2025 results, with revenues increasing to $1,972.7 million from $1,626.2 million year-over-year, alongside an increase in net income. The defense company also announced new contracts.
- GE Appliances, owned by Haier, announced plans to invest over $3 billion over five years in its U.S. operations and workforce, aiming to create 1,000 jobs, a move influenced by U.S. President Donald Trump's tariff policies.
- In corporate M&A news, Hanesbrands (HBI) has reportedly agreed to a $4.4 billion deal with Canada's Gildan Activewear (GIL).
- Air Canada (AC.TO) is set to begin cancelling flights ahead of a potential work stoppage by its flight attendants.
- NXP Semiconductors N.V. (NXPI) was a notable gainer on Tuesday, with its stock price surging 7.3%.
- Cryptocurrency trading company Bullish is set to go public after pricing its IPO at $37 per share, raising $1.1 billion.
- Insmed (INSM) shares jumped 8.1% on Tuesday after U.S. regulators cleared its new drug, Brinsupri, for non-cystic fibrosis bronchiectasis (NCFB).
- Intapp (INTA) soared 26% after its earnings beat estimates and the company announced a stock buyback.
- Lumentum Holdings (LITE) shares rose 2.5% after swinging to a profit in its fiscal fourth quarter.
Looking ahead to today's earnings reports, Cisco Systems (CSCO) is expected to release its Q4 2025 results after the market closes. Other companies anticipated to report today include Tencent Holdings (TCEHY), Bath & Body Works (BBWI), and Lulu's Fashion Lounge (LVLU). Further into August, Lowe's Companies (LOW) will host its Q2 2025 earnings call on August 20, and PVH Corp. (PVH) is scheduled to release its Q2 2025 earnings on August 26, with a conference call on August 27. The overall market sentiment remains one of cautious optimism, with investors betting on continued strength fueled by potential Fed easing and a relatively calm geopolitical backdrop.
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.