As Thursday, August 14, 2025, unfolds, the U.S. stock market is navigating a complex landscape of premarket adjustments, recent record highs, and fresh inflation data. Following a robust performance on Wednesday, where major indexes closed at or near all-time peaks, investors are closely scrutinizing new economic indicators that could sway the Federal Reserve's monetary policy trajectory. The market remains open, with trading activity expected to reflect a cautious sentiment as participants digest the latest figures.
Market Indexes: Riding the Wave of Optimism
Wednesday's trading session saw a significant surge, with the S&P 500 (SPX) climbing 0.3% to close at a new record high of 6,466.58, and even touching an intraday high of 6,480.28. The tech-heavy Nasdaq Composite (IXIC) also marked a fresh closing high, advancing 0.1% to 21,713.14, after reaching an intraday peak of 21,803.75. The Dow Jones Industrial Average (DJI) demonstrated strong momentum, surging 1.04% and adding 463.66 points to finish at 44,922.27, now just 0.4% shy of its all-time high. This rally was largely fueled by a cooler-than-expected Consumer Price Index (CPI) report earlier in the week, which ignited optimism among investors regarding a potential interest rate cut by the Federal Reserve as early as September.
Futures Point to Mixed Open Amid Inflation Concerns
Premarket trading on Thursday indicates a mixed to slightly negative start for the major U.S. indexes, particularly after the release of the latest Producer Price Index (PPI) data. Dow Jones futures (YM=F) initially steadied, showing a slight uptick of 14 points, but later, along with S&P 500 futures (ES=F) and Nasdaq 100 futures (NQ=F), turned sharply downwards. S&P 500 futures were down 0.8% at one point, trading near 6,450, while Nasdaq 100 futures declined 0.8% to around 23,900. Later reports showed S&P 500 futures down 0.1% and Nasdaq futures down 0.1%, with Dow futures down three points. This cautious sentiment in futures markets reflects traders' reaction to the hotter-than-expected PPI report, which could influence the Federal Reserve's policy outlook. Despite the slight premarket dip, major technology stocks, which exert significant influence on the broader market, were mostly higher, albeit with small movements. This includes giants like Nvidia (NVDA), Microsoft (MSFT), Apple (AAPL), Alphabet (GOOG), Amazon (AMZN), and Tesla (TSLA), all rising less than 0.5%. Conversely, Meta Platforms (META) and Broadcom (AVGO) showed slight declines in premarket trading.
Key Economic Data and Federal Reserve Outlook
Today's economic calendar is highlighted by the release of the U.S. Producer Price Index (PPI) for July and weekly Initial Jobless Claims. The July PPI data came in hotter than anticipated, rising 0.9% month-over-month, significantly surpassing the consensus expectation of a 0.2% increase. On a year-over-year basis, wholesale inflation accelerated to +3.3%, well above the +2.5% consensus. Core PPI, excluding volatile food and energy components, also jumped 0.9% sequentially in July. This unexpected surge in wholesale inflation has introduced a new layer of complexity to the market's "easing expectation mode" that followed the cooler CPI report.
In contrast, weekly Initial Jobless Claims for the week ended August 9 showed a slight improvement, decreasing by 3,000 to 224,000, which was slightly below the 225,000 consensus. This data point suggests a still-resilient, albeit cooling, labor market. Looking ahead, the Federal Open Market Committee (FOMC) meeting minutes from July are scheduled for release next week, specifically on August 20. These minutes will provide further insights into the Fed's discussions and potential future policy decisions. Additionally, the annual Jackson Hole Economic Policy Symposium is set to begin next week, where Fed Chair Jerome Powell's address will be closely watched for any signals regarding the future path of interest rates.
Corporate Earnings in Focus
The earnings season continues to deliver a mixed bag of results, influencing individual stock movements. Several companies reported their second-quarter 2025 earnings today. Applied Materials (AMAT) was expected to report solid figures, while Dillard's (DDS), NetEase (NTES), Nu Holdings (NU), Tapestry (TPR), and Welltower (WELL) also had their results anticipated.
Among the notable movers based on earnings and corporate news:
- Cisco Systems (CSCO) saw its shares little changed after reporting earnings that narrowly beat expectations, supported by growth in AI-related segments, with an 8% year-over-year revenue increase.
- Deere & Co. (DE) shares dropped over 6% in premarket trading after providing weaker-than-expected full-year guidance, projecting net income below prior estimates.
- Ibotta (IBTA) plunged 23% after missing its earnings targets.
- Coherent (COHR) fell 18% despite beating estimates, a decline attributed to the sale of its defense division.
- Brinker International Inc. (EAT) saw its shares rise 1.6% after its revenues surpassed consensus estimates.
- Arcos Dorados Holdings Inc. (ARCO) jumped 9.8% after posting stronger-than-expected second-quarter revenues.
- Conversely, CAVA Group Inc. (CAVA) plummeted 16.6% after missing revenue estimates, and CoreWeave Inc. (CRWV) fell 20.8% after reporting a wider-than-expected loss.
- Adyen (ADYEN), the global payments platform, announced its H1 2025 financial results, reporting a 20% year-over-year increase in net revenue.
- Protalix BioTherapeutics (PLX) reported a 16% increase in revenues from selling goods for Q2 2025 and achieved a net income.
Major Company News and Sector Highlights
Beyond earnings, several companies made headlines with strategic developments. Infosys (INFY) announced a joint venture with Australia's Telstra to deliver AI-powered cloud and digital solutions, expanding its presence in the Asia-Pacific region. Notably, Infosys also partnered with Google Cloud (GOOGL) for advanced AI solutions, a collaboration also undertaken by Wipro (WIPRO). HDFC Bank (HDB) received approval from the Reserve Bank of India (RBI) to utilize its share premium account for issuing bonus shares, a move that could enhance shareholder value. Shilpa Medicare (SHILMED) also approved a 1:1 bonus share issuance, aiming to boost liquidity and investor sentiment.
In the broader market, cryptocurrencies continued their impressive rally, with Bitcoin (BTCUSD) touching an all-time high of $123,693, and Ether (ETHUSD) climbing closer to its 2021 peak. The strong performance in the digital asset space was further highlighted by the crypto exchange Bullish (BLSH), whose shares nearly doubled on their first trading day after its IPO. This surge reflects growing institutional adoption and increasing regulatory clarity in the crypto market.
In summary, while the U.S. stock market entered Thursday with the momentum of recent record highs, the hotter-than-expected PPI data has introduced a note of caution, leading to a mixed premarket for futures. Investors will continue to monitor economic data and corporate announcements closely, as the interplay between inflation, interest rate expectations, and company performance shapes the day's trading.
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.