The U.S. stock market is extending its rally into midday trading on Wednesday, August 13, 2025, with major indexes reaching new all-time highs as investor optimism for a September interest rate cut by the Federal Reserve continues to build. The prevailing sentiment is a "Goldilocks" scenario, where inflation data is easing enough to warrant monetary policy loosening without signaling an immediate economic slowdown.
Midday Trading Patterns and Market Momentum
As of midday, the market exhibits strong positive momentum, largely driven by yesterday's less-than-expected July Consumer Price Index (CPI) report. This inflation data has significantly reinforced expectations that the Federal Reserve will initiate its first interest rate cut of the year at its upcoming September meeting. Futures tied to the major indexes were pointing to a higher open, and this momentum has largely carried through the morning. Treasury yields have eased, with the 10-year Treasury yield recently at 4.24%, down from yesterday's close, further supporting the equity rally by making borrowing costs more attractive for businesses and consumers. The U.S. dollar index is also trading at a two-week low, which can be favorable for multinational corporations.
The bullish mood is not confined to New York, with global markets also reflecting optimism. Tokyo's Nikkei, Frankfurt's DAX, and London's FTSE all closed higher, with several international indexes hitting multi-month or even record peaks, indicating a global wave of confidence stemming from potential Fed easing.
Major Market Indexes Performance
All three major U.S. stock indexes are trading in positive territory, building on Tuesday's strong gains. The Dow Jones Industrial Average (DJI) is up approximately 0.7% recently, holding onto its gains and nearing its all-time high recorded in December 2024. The S&P 500 (SPX) has risen about 0.1% in midday trading, after closing at a new record high yesterday for the first time since late July and hitting a new intraday record of 6,480.28 points today. The tech-heavy Nasdaq Composite (IXIC) also added 0.1% after setting its own record closing high for the third time in four days yesterday and reaching a new intraday high of 21,803.75 points today.
Sector-wise, technology and communication services continue to lead the charge, reflecting robust performance from big tech companies. The Technology Select Sector SPDR (XLK) and Communication Services Select Sector SPDR (XLC) rose 1.6% and 1.9% respectively in yesterday's session, contributing significantly to the broader market's ascent. Other sectors like Financials (XLF), Consumer Discretionary (XLY), Industrials (XLI), and Materials (XLB) also saw gains of over 1%.
Upcoming Market Events
The economic data calendar for today, August 13, 2025, is relatively light, following yesterday's crucial CPI report. However, market participants are keenly awaiting tomorrow's scheduled release of the Producer Price Index (PPI) data, which will offer further insights into wholesale inflation. Beyond this week, the market's focus will shift to the Federal Reserve's September FOMC meeting, where a rate cut is now almost entirely priced in by futures traders, with a nearly 94% probability for a 25-basis-point reduction. Additionally, the annual Jackson Hole Symposium later in August will be closely watched for any further signals on monetary policy direction from global central bankers.
Major Stock News and Developments
Several major public companies are making headlines today, driven by earnings reports, corporate announcements, and broader market sentiment.
Tech Giants and Growth Stocks Leading the Charge:
Tech megacaps such as Apple (AAPL), Nvidia (NVDA), and Tesla (TSLA) have been instrumental in the recent rally, each rising between 2% and 4% over the past two days, fueled by rate cut hopes. Microsoft (MSFT) also saw a gain of 1.7% yesterday, pushing its market capitalization near $3.6 trillion, while Amazon (AMZN) climbed 2.0% to a fresh all-time high.
Notable Earnings and Company News:
- Sea Limited (SE) shares jumped 19.1% after reporting better-than-expected second-quarter 2025 revenues of $5,361.64 million, surpassing analyst estimates.
- On Holding AG (ONON) climbed 9% following strong second-quarter 2025 revenues of $907.78 million, outpacing consensus estimates.
- NXP Semiconductors N.V. (NXPI) surged 7.3%, making it a major gainer within the Nasdaq Composite.
- CoreWeave (CRWV), an Nvidia-backed AI computing provider, saw its shares drop after reporting a larger-than-expected second-quarter loss, despite revenue soaring 207% year-over-year.
- CAVA Group (CAVA) stock collapsed by 22% yesterday and sank further today after reporting weak Q2 revenue growth and lowering its same-store sales guidance for fiscal 2025.
- Cardinal Health Inc. (CAH) shares tumbled 7.2% after missing fourth-quarter fiscal 2025 revenue estimates.
- FOXO Technologies Inc. (FOXO) announced that its common stock can be quoted and traded on the over-the-counter market from today, August 13, 2025, after being delisted from NYSE American due to low share price.
- In other significant corporate news, Amazon's announcement to offer fresh groceries with same-day delivery in over 1,000 cities led to declines for grocery stores like Kroger (KR), which fell 4.3%, and delivery companies like DoorDash (DASH), down 4.4%.
- Lowe's Companies, Inc. (LOW) announced it will host its Second Quarter 2025 Earnings Conference Call on Wednesday, August 20.
- More than 500 companies are scheduled to announce quarterly earnings today, including Bharat Petroleum Corporation (BPCL), Muthoot Finance, and Indian Railway Catering & Tourism Corp (IRCTC). Other companies expected to report today include Cisco Systems (CSCO), Tencent Holdings (TCEHY), Bath & Body Works (BBWI), and Lulu's Fashion Lounge (LVLU).
The market remains highly sensitive to inflation data and Federal Reserve commentary, with the current midday rally reflecting strong conviction in an imminent rate cut. Investors will continue to monitor economic indicators and corporate earnings for further direction as the trading day progresses.
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.