As Tuesday, August 12, 2025, unfolds, the U.S. stock market is showing a cautious optimism in premarket trading, with futures contracts indicating a slightly positive open. Investors are keenly awaiting the release of key inflation data later in the week, which is expected to significantly influence the Federal Reserve's monetary policy outlook. The broader market remains sensitive to economic indicators and corporate developments, particularly after a mixed performance in the previous session.
Premarket Activity and Futures Movements
U.S. stock futures are holding steady this morning as market participants brace for the highly anticipated Consumer Price Index (CPI) data. Dow Jones Industrial Average (DJIA) futures (US30) were up, trading around 44,037.50, reflecting a modest gain of approximately 0.14%. Similarly, S&P 500 (SPX) futures (US500) have edged higher, rising to 6379 points, a 0.09% increase from Monday's close. Nasdaq Composite (IXIC) futures also indicated a positive start, suggesting a potential rebound for technology-heavy stocks that experienced some weakness yesterday. Premarket trading activity, while indicative, sets the tone for the regular trading session, providing early insights into market sentiment. The Nasdaq-100 Pre-Market Indicator is closely watched by investors for a sense of market direction before the official open.
Major Market Indexes: Current Performance and Trends
Following Monday's session, where major indexes saw slight declines, today's open will be closely monitored. On August 11, the Dow Jones Industrial Average (DJIA) fell by 0.45%, while the S&P 500 (SPX) saw a decrease of 0.25%, and the Nasdaq Composite (IXIC) dropped by 0.3%. These movements reflected broad-based weakness, with eight of the eleven S&P 500 sectors closing lower, particularly energy, real estate, and technology sectors.
Despite yesterday's dip, the broader trend for the S&P 500 (SPX) remains positive over the medium term. Over the past month, the index has climbed 1.76%, and it stands impressively up by 17.38% compared to the same period last year. The technology and financial sectors have notably outperformed at the start of the third quarter of 2025, a trend that money managers are likely to continue favoring.
Upcoming Market Events
The economic calendar for the week of August 11, 2025, is packed with critical data releases that could significantly impact market direction. The most anticipated event is the release of U.S. Consumer Price Index (CPI) data for July, which is expected to be a key determinant of the Federal Reserve's interest rate trajectory. There are concerns that recent tariff developments, including higher tariffs imposed on August 7th and new threats of 100% chip tariffs, could push inflation above the Federal Reserve's target in the coming months, despite headline CPI remaining under 3.0% in Q2. Markets are currently pricing in nearly a 90% probability of a rate cut at the Fed's September meeting, making the CPI report even more crucial.
Beyond CPI, other important U.S. economic data due this week include the Producer Price Index (PPI), retail sales, industrial production, and the University of Michigan (UoM) consumer sentiment data. Internationally, the Reserve Bank of Australia (RBA) had its interest rate decision today, with a rate cut potentially on the table. The United Kingdom is also set to release its GDP, labor market, and trade data, while China will provide updates on industrial production and retail sales. The August S&P Global Investment Manager Index update, due today, will also be scrutinized for changes in investor sentiment, especially concerning the tech sector given recent tariff threats.
Major Stock News and Developments
Several major companies are making headlines today, influencing individual stock movements and broader market sentiment.
In a significant development, President Donald Trump announced an extension of the 90-day pause on tariffs for Chinese goods, a move that could ease trade tensions and provide some relief to global markets. However, a new deal requiring Nvidia (NVDA) and Advanced Micro Devices (AMD) to remit 15% of revenue from certain AI chip sales to China has introduced fresh uncertainty for the technology sector.
On the corporate earnings front, Hindustan Aeronautics (HAL), an Indian company, reported a 4.1% decline in its Q1 net profit, although its total income saw a 9.5% increase. While not a U.S. company, such international earnings reports can sometimes ripple through global markets.
Other notable company news includes Boku (BOKU), which announced a partnership with visual design platform Canva to expand its payment solutions in Asia and Europe. PayPoint has also inked a deal with Lloyds customers to facilitate cash deposits. In the biotech space, PureTech has launched Celea Therapeutics, a new vehicle for respiratory development.
Companies like Entain PLC have raised their interim dividends and full-year outlooks, signaling positive corporate performance. TMT Investments PLC (TMTI) reported an increase in its net asset value, expressing confidence in its investment capabilities despite market conditions. Arcontech Group PLC (ARC) anticipates full-year profit to exceed market consensus.
On the trading activity front, Firefly Aerospace successfully launched its Initial Public Offering (IPO) on Nasdaq, marking another space and defense technology company entering public markets. Among the most actively traded stocks by dollar volume recently were Tesla (TSLA), Apple (AAPL), Nvidia (NVDA), Microsoft (MSFT), and Alphabet (GOOGL). Notably, retail trading activity showed positive sentiment for Nvidia (NVDA) and Palantir Technologies (PLTR), while Tesla (TSLA) and Apple (AAPL) saw negative retail flow. Individual stock gainers included Electronic Arts Inc. (EA), Micron Technology Inc. (MU), Intel Corp. (INTC), and Coinbase Global Inc. (COIN).
As the trading day progresses, market participants will continue to monitor these developments and the forthcoming economic data, particularly the CPI report, which holds the potential to reshape market expectations and investment strategies for the remainder of August.
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.