The U.S. stock market experienced a slight pullback on Thursday, August 14, 2025, as a hotter-than-expected Producer Price Index (PPI) report for July dampened investor enthusiasm for aggressive interest rate cuts by the Federal Reserve. After a period of record-setting highs, major indexes concluded the trading day in negative territory, reflecting a cautious sentiment across Wall Street.
Market Performance Overview
The S&P 500 (SPX) was fractionally lower in late trading, closing at 6,449.74, a retreat from its new all-time high of 6,480.28 reached during intraday trading and its record close on Wednesday. Similarly, the tech-heavy Nasdaq Composite (IXIC) also finished the day fractionally lower, settling at 21,690.45. The Dow Jones Industrial Average (DJI) slipped 0.1% to 44,757.98, moving further from its December 2024 all-time high. This broad market decline followed a significant rise in the Producer Price Index, which surged 0.9% month-over-month in July and 3.3% annually, far exceeding economists' expectations. The unexpected inflation data led traders to temper their expectations for Fed rate cuts, though a quarter-percentage-point reduction in September remains largely priced in by the market.
Sector performance on Thursday was largely negative, with nine of the 11 S&P 500 sectors declining. Materials (XLB) led the losses, falling 1.2%, while rate-sensitive small-caps and housing stocks also saw declines of over 1%. This shift underscores investor sensitivity to inflation signals and their potential impact on monetary policy.
Upcoming Market Events and Economic Indicators
Looking ahead, the economic calendar for August 2025 holds several key events that could influence market direction. Investors will be closely watching for the release of the FOMC Meeting Minutes later in the month, which will provide deeper insights into the Federal Reserve's latest policy discussions and their stance on future rate adjustments. The upcoming Consumer Price Index (CPI) year-over-year data for the U.S. will also be a critical release, as it directly impacts inflation expectations and, consequently, the Fed's monetary policy decisions.
Other notable economic data releases include weekly Unemployment Claims and the Flash Manufacturing PMI & Flash Services PMI for the Eurozone, UK, and US, which offer snapshots of economic health and manufacturing activity. The annual Jackson Hole Symposium, a gathering of central bankers, finance ministers, academics, and financial market participants from around the world, is also scheduled for August and could provide significant forward guidance on global monetary policy. Remarks from Federal Reserve officials, such as St. Louis Fed President Alberto Musalem, who is a voting member of the Federal Open Market Committee this year, will continue to be scrutinized for any hints on the Fed's path forward.
Major Stock News and Corporate Announcements
Thursday saw a flurry of corporate news, with several companies reporting earnings or making significant announcements.
Deere & Co. (DE) experienced a notable drop, with its shares falling 6.5% after the farm-equipment maker reported a lower-than-expected quarterly profit and tightened its annual profit forecast. The company cited a "challenging" economic environment and the impact of tariffs on its business, which contributed to its Production & Precision Agriculture unit sales sinking 16%.
Luxury accessories company Tapestry (TPR), parent of Coach, saw its stock plunge 17.6% after it issued an annual profit forecast that fell below market estimates. Like Deere, Tapestry also highlighted the negative effects of tariffs on its operations.
In other earnings news, Brinker International Inc. (EAT), the parent company of Chili's and Maggiano's, saw its shares rise 1.6% after reporting fiscal fourth-quarter 2025 revenues that surpassed analyst estimates. Arcos Dorados Holdings Inc. (ARCO), the largest McDonald's franchisee in Latin America, also jumped 9.8% following a strong second-quarter 2025 revenue report that exceeded expectations. Conversely, CAVA Group Inc. (CAVA) shares plunged 16.6% after the Mediterranean fast-casual chain missed its second-quarter 2025 revenue estimates. CoreWeave Inc. (CRWV) also saw a significant decline of 20.8% after its second-quarter 2025 adjusted loss per share was wider than anticipated.
After the market close, several companies were slated to release their quarterly results. Applied Materials (AMAT), a key player in the semiconductor equipment industry, was set to report its fiscal third-quarter 2025 earnings. Wall Street analysts were anticipating earnings per share of $2.34 on revenues of $7.21 billion, with high expectations driven by strong demand in AI and high-bandwidth memory (HBM). AmpliTech Group, Inc. (AMPG), a designer and manufacturer of signal processing components, also announced its second-quarter 2025 earnings report after market closing today, with an investor conference call scheduled for 5:00 PM ET.
Earlier in the day, Cellebrite (CLBT), a global leader in digital investigative solutions, announced its second-quarter 2025 financial results, reporting a 21% increase in Annual Recurring Revenue (ARR) and an 18% rise in overall revenue. The company also announced the appointment of Thomas E. Hogan as its new CEO. Chinese e-commerce giant JD.com, Inc. (JD) released its unaudited financial results for the second quarter of 2025, showing a 22.4% increase in net revenues year-over-year, though net income attributable to ordinary shareholders saw a decrease. Shipping company TORM plc (TRMD) also reported strong second-quarter 2025 results and raised its full-year guidance, approving an interim dividend of $0.40 per share.
Among the major technology companies, Amazon (AMZN) shares were up 3%, while Nvidia (NVDA), Microsoft (MSFT), Alphabet (GOOG), Meta Platforms (META), and Broadcom (AVGO) all saw slight gains. However, Tesla (TSLA) and Apple (AAPL) ticked lower by the close.
Today's market performance underscores the ongoing tug-of-war between strong corporate earnings and persistent inflationary pressures, with the latter currently taking precedence in shaping investor sentiment. The focus now shifts to upcoming economic data and the Federal Reserve's continued communication on its monetary policy trajectory.
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.