U.S. equities opened mixed on Friday, August 15, 2025, as investors digested hotter-than-expected inflation data from the previous session and a flurry of significant corporate announcements. While the S&P 500 managed to eke out a marginal gain, continuing its record-setting streak, both the Dow Jones Industrial Average and the Nasdaq Composite showed slight declines at the open, reflecting a cautious sentiment across the broader market. The underlying narrative continues to be a delicate balance between persistent inflationary pressures and the anticipation of potential Federal Reserve policy adjustments.
Current Market Performance
At the open, the S&P 500 (SPX) advanced marginally, extending its record high for the third consecutive session. This resilience comes despite a challenging backdrop, with the index reaching 6,468.54 points on Thursday and futures indicating a slight gain for Friday's open. The Dow Jones Industrial Average (DJIA) dipped slightly, opening around 44,911.26 after a choppy session on Thursday. Meanwhile, the technology-heavy Nasdaq Composite (IXIC) also saw a fractional decrease, hovering around 21,710.67, largely influenced by weakness in the semiconductor sector.
The market's tepid movement follows Thursday's revelation of a hotter-than-expected Producer Price Index (PPI) for July, which surged 0.9% month-over-month, significantly above the 0.2% forecast, and climbed 3.3% year-over-year. This inflation data dampened investor sentiment and tempered expectations for aggressive interest rate cuts by the Federal Reserve. The CBOE Volatility Index (VIX), often referred to as the market's "fear gauge," was up 2.4% to 14.83, indicating a slight uptick in market apprehension. Despite the mixed opening, futures for the Dow Jones Industrial Average (DJIA) were notably higher, driven by specific corporate news, while S&P 500 futures showed modest gains and Nasdaq futures ticked lower.
Upcoming Market Events
Today's trading session will be heavily influenced by several key economic data releases scheduled for Friday, August 15, 2025. Investors are keenly awaiting reports on Retail Sales, the Michigan Consumer Sentiment Index, Industrial Production, and Import Prices. These indicators will provide further insights into the health of the U.S. economy and could sway expectations regarding the Federal Reserve's monetary policy path. Retail sales growth in July is anticipated to have slowed slightly, with economists forecasting a 0.5% increase compared to 0.6% in the prior month. The Michigan Consumer Sentiment Index is also expected to show a slight improvement.
Looking ahead, the Federal Reserve remains a central focus. Despite the recent hotter inflation data, most economists continue to anticipate the first interest rate cut of the year in September. The CME FedWatch Tool indicates a high probability of a 25-basis-point rate cut at the upcoming September meeting, influenced by recent data showing a cooling labor market and moderating inflation. However, internal dissent within the Fed and ongoing political pressure from the U.S. President regarding rate cuts add a layer of uncertainty to the outlook. The annual Jackson Hole Symposium later in August will also be closely watched for any signals from Fed Chair Jerome Powell. Beyond this week, the market will turn its attention to August's flash PMI data, due next week, which will offer early insights into economic conditions following recent tariff implementations.
Major Stock News
Corporate headlines are driving significant individual stock movements this Friday. UnitedHealth Group (UNH) shares surged over 11% in pre-market trading, leading the Dow's futures higher, after Warren Buffett's Berkshire Hathaway (BRK.A, BRK.B) disclosed a substantial $1.6 billion stake in the health insurance giant in a recent regulatory filing. Berkshire Hathaway also revealed new positions in Allegion (ALLE), homebuilder D.R. Horton (DHI), Lamar Advertising (LAMR), and steelmaker Nucor (NUE), all of which saw their shares move higher. Conversely, Berkshire Hathaway sold its remaining stake in T-Mobile US (TMUS) and nearly half of its Charter Communications (CHTR) shares.
In the semiconductor sector, Applied Materials (AMAT) shares plummeted approximately 14% in pre-market trading after the company issued a disappointing outlook for the current quarter, citing "softness in advanced memory demand from China". This news weighed on other chip-related stocks, with KLA Corp. (KLAC) dropping 6% and Lam Research (LRCX) falling 5%. Countering this trend, Intel (INTC) shares gained over 2% following reports that the U.S. government is exploring the possibility of taking a stake in the struggling chipmaker.
Several companies are also reporting earnings today. Among those expected to release results before the market open are Flowers Foods, Inc. (FLO), BitFuFu Inc. (FUFU), Nano Labs Ltd. (NA), Sigma Lithium (SGML), and So-Young International (SY). Elsewhere, Thomson Reuters (TRI) announced a plan to repurchase up to $1.0 billion of its shares under a new normal course issuer bid. Other major technology companies, including Apple (AAPL), Microsoft (MSFT), Nvidia (NVDA), Tesla (TSLA), Google (GOOGL), Amazon (AMZN), and Meta Platforms (META), saw modest movements in pre-market trading. Reports also highlight that Soros and Appaloosa have boosted their stake in Nvidia.
The market remains sensitive to inflation data and Federal Reserve commentary, with corporate earnings and strategic investments providing distinct catalysts for individual stock performance. Investors will continue to monitor incoming economic data and geopolitical developments, including the ongoing Trump-Putin meeting, for further direction.
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.