The U.S. stock market is experiencing a robust midday rally on Tuesday, August 12, 2025, with major indexes pushing to new all-time highs. This significant upward momentum is largely attributed to the latest Consumer Price Index (CPI) report for July, which came in largely as expected, bolstering investor confidence in potential interest rate cuts by the Federal Reserve later this year.
At midday, the S&P 500 (SPX) and Nasdaq Composite (IXIC) have both hit fresh all-time highs, with the S&P 500 recently up 0.8% and the Nasdaq Composite gaining 0.9%. The Dow Jones Industrial Average (DJI) has also seen strong gains, adding 1%. The S&P 500 is now on track for its first record close since July 28, while the tech-heavy Nasdaq is poised for its third record close in the past four trading sessions, underscoring a strong bullish sentiment in the technology sector. This midday surge follows a slightly lower finish for major indexes on Monday, as markets awaited the crucial inflation data. The CBOE Volatility Index (VIX), often referred to as the market's "fear gauge," has declined by over 6%, sitting at 15.23, reflecting reduced market anxiety.
The primary catalyst for today's market enthusiasm is the July CPI report, released this morning. The data indicated that annual inflation held steady at 2.7%, a figure slightly better than economists had anticipated. While core inflation, excluding volatile food and energy prices, was a tad higher than expected, the overall reading has solidified expectations among traders for the Federal Reserve to initiate its first interest rate cut of the year in September. This outlook for monetary easing, coupled with reduced concerns surrounding the impact of tariffs and the broader economic outlook, has been a significant tailwind for equities, propelling them to record levels. Looking ahead, market participants will be closely watching the Producer Price Index (PPI) for July, scheduled for release on Thursday, August 14, which will provide further insights into inflationary pressures at the producer level. Additionally, the annual Jackson Hole Symposium later in August will be a key event for further signals on monetary policy.
In corporate news, several major companies are making headlines with their latest developments and earnings reports. Shares of the world's largest technology companies, which exert a considerable influence on the broader market, are predominantly higher today. Meta Platforms (META) has surged nearly 3%, while tech giants Microsoft (MSFT), Apple (AAPL), Alphabet (GOOG), and Broadcom (AVGO) have each tacked on approximately 1%. Nvidia (NVDA) and Amazon (AMZN) have also inched higher, though Tesla (TSLA) has seen a slight dip.
In earnings-related news, Circle Internet Group (CRCL) saw its shares rise after reporting better-than-expected second-quarter 2025 financial results, driven by the expanding use of its USDC stablecoin. Conversely, artificial intelligence data analytics firm BigBear.ai (BBAI) experienced a significant plunge in its stock price after slashing its revenue outlook and withdrawing its profit forecast due to uncertainties surrounding government contracts. On Holding (ONON), the footwear company, climbed after exceeding analysts' earnings estimates and raising its full-year revenue and gross profit margin outlook.
Other notable movers include Micron Technology Inc. (MU), whose shares surged after the company raised its fourth-quarter fiscal 2025 earnings per share and revenue guidance. In contrast, AAON Inc. (AAON) saw its shares plunge after reporting second-quarter 2025 adjusted earnings that missed the Zacks Consensus Estimate. United Airlines Holdings Inc (UAL) stock is soaring today, up over 9%, benefiting from the CPI data which showed a 4% rise in airline fares in July, a stark reversal from the previous month. However, Cardinal Health (CAH) is sitting out the broad market rally, with its stock down after reporting fiscal fourth-quarter revenue that fell short of estimates. The healthcare company also announced its plan to acquire Solaris Health for $1.9 billion. AST SpaceMobile Inc (ASTS) is also up, despite a disappointing second-quarter earnings report, as investors are cheering the company's fully funded plan to deploy 45 to 60 satellites into orbit by 2026.
Beyond earnings, the broader market is also reacting to geopolitical developments. President Donald Trump announced a 90-day extension of the deadline for the U.S. and China to formulate and agree on tariffs, a move that has temporarily removed a significant pressure point from the ongoing trade negotiations. This reprieve, while prolonging some uncertainty, has been generally viewed positively by the market as it allows for continued talks on a comprehensive trade agreement.
As midday trading continues, the strong performance across major indexes, particularly in the tech sector, suggests sustained investor optimism. The favorable inflation data has reinforced expectations for accommodative monetary policy, providing a strong foundation for the current market momentum. Investors will continue to monitor upcoming economic releases and corporate earnings for further cues on the market's 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.