The U.S. stock market is poised for another day of potential gains on Wednesday, August 13, 2025, as positive sentiment from Tuesday's record-setting rally continues to ripple through premarket trading. Hopes for an impending Federal Reserve interest rate cut, bolstered by recent inflation data, are driving investor optimism, particularly in the technology sector.
Premarket Activity and Futures Movements
As of early Wednesday, U.S. stock index futures are trading higher, signaling a continued upward trajectory for Wall Street. S&P 500 Futures inched 0.2% higher, while Nasdaq 100 Futures jumped a more significant 0.8%, pointing to sharp gains in tech stocks in the upcoming session. Dow Jones Futures were largely unchanged, reflecting a mixed but generally positive outlook across the board. This premarket strength builds on the momentum from Tuesday, where all three major benchmarks closed at all-time highs.
Major Market Indexes: A Record-Breaking Run
Tuesday, August 12, 2025, was a historic day for U.S. equities, with the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all surging to new record closing highs. The rally was primarily fueled by July's Consumer Price Index (CPI) data, which came in slightly better than economists expected, reinforcing market expectations for a Federal Reserve rate cut as early as next month.
The S&P 500 advanced 1.1% to close at 6,445.76, surpassing its previous all-time high set just two weeks prior. The tech-heavy Nasdaq Composite led the charge, jumping 1.4% to finish at a new record of 21,681.90, driven by strong performance from big technology companies. The Dow Jones Industrial Average also climbed, gaining 1.1% (483.52 points) to reach 44,458.61. The broad-market rally saw all 11 sectors of the S&P 500 end in positive territory, with Technology and Communication Services leading the gains.
Upcoming Market Events to Watch
While today, August 13th, is relatively light on major economic reports, market participants are keenly awaiting Thursday's Producer Price Index (PPI) data, which will provide further insights into wholesale inflation trends. This follows Tuesday's crucial CPI report, which showed U.S. consumer prices rising moderately by 0.2% in July, matching June's pace and coming in below the 2.8% annual expectation at 2.7%.
The softer inflation data has significantly increased the probability of a Federal Reserve interest rate cut. Traders are now pricing in nearly a 94% chance of a 25-basis-point reduction at the Fed's next meeting in September, according to CME Group data. Beyond September, swaps markets are indicating expectations for at least three more similar rate cuts by June of next year. Additionally, the annual Jackson Hole Symposium, a key event for central bankers, is scheduled for August 23, 2025, and could offer further clues on monetary policy direction.
Major Stock News and Developments
Several major public companies are making headlines today, with significant developments impacting their stock performance and market outlook.
Microsoft (MSFT)
Microsoft's stock has resumed its uptrend, driven by the rollout of its latest AI model, GPT-5, and record growth in its Azure cloud computing services. The company's shares surged over 10% after reporting strong fiscal Q2 earnings, with Azure revenue exceeding Wall Street's expectations and solidifying Microsoft's position in the cloud market. The company's market capitalization briefly surpassed $4 trillion, highlighting its increasing influence in AI and enterprise services. Microsoft is also reportedly intensifying its push for Windows users to switch from Google's Chrome browser to its own Edge browser, a strategic move that has contributed to its recent stock gains.
Nvidia (NVDA)
Nvidia continues its impressive run, with its stock closing at new records and its market capitalization nearing $4.5 trillion, representing over 8% of the S&P 500's total market value. The chipmaker's shares reached an all-time high of $183.10 on Tuesday. This surge is largely attributed to continued U.S. government support for domestic chip manufacturing and eased sales restrictions, granting Nvidia partial access to the Chinese market for its H20 chips. In an unusual development, Nvidia has reportedly agreed to pay the U.S. government 15% of the revenue generated from these chip sales into China.
Apple (AAPL)
Apple recently announced an additional $100 billion investment, bringing its total domestic commitment to $600 billion over the next four years. This substantial investment includes a $2.5 billion deal with Corning (GLW) to produce all iPhone and Apple Watch cover glass at Corning's Kentucky facility, marking the first time all such glass will be manufactured entirely in the U.S.. Wedbush reaffirmed an 'Outperform' rating on Apple with a $270 price target, citing optimism about upcoming iPhone product cycles and potential AI-related perception shifts. Meanwhile, Apple Senior Vice President Deirdre O'Brien sold over $7.7 million in shares under a pre-arranged trading plan. Separately, Elon Musk has reportedly threatened legal action against Apple, accusing it of antitrust violations concerning the App Store's rankings of his xAI startup's GrokAI chatbot.
Tesla (TSLA)
Tesla recorded over 13,400 new insured registrations in China from August 4-10, a significant 71% jump compared to the previous quarter, despite July sales being down 12% year-over-year in the region. The electric vehicle giant is navigating various challenges, including ongoing lawsuits related to its Autopilot driver-assistance software and its robotaxi program. However, the company recently secured a Texas Robotaxi license, a tangible step in advancing its robotaxi ambitions.
Alphabet (GOOGL, GOOG)
In a notable development, AI startup Perplexity AI made an unsolicited $34.5 billion bid to acquire Google's Chrome web browser. Analysts view this as a strategic move by Perplexity to influence an upcoming antitrust ruling against Google's search business, which could potentially mandate a Chrome divestiture. Alphabet is also a key player in the race to build million-qubit quantum computers, competing with IBM (IBM) and Microsoft (MSFT) in this cutting-edge field. Recent filings indicate that some institutional investors, including Wealthspire Advisors LLC and Goldman Sachs Group Inc., have trimmed their positions in Alphabet shares.
Cisco Systems (CSCO)
Networking equipment provider Cisco Systems is scheduled to report its fiscal fourth-quarter earnings after the market closes today, Wednesday, August 13th. Analysts will be closely watching the company's outlook for its fiscal year 2026, particularly regarding its AI-related orders and growth prospects.
Today's market activity underscores a continued bullish sentiment, primarily driven by expectations of a more accommodative Federal Reserve and the ongoing strength and innovation within the technology sector. Investors will remain vigilant for upcoming economic data and corporate earnings to gauge the market's trajectory in the coming weeks.
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.