U.S. equity markets continued their upward trajectory on Wednesday, August 13, 2025, extending a robust rally fueled by persistent optimism surrounding a potential interest rate cut by the Federal Reserve. All three major indexes traded higher throughout the day, building on Tuesday's significant gains which were driven by a lower-than-expected inflation report for July. Investors are increasingly confident that the central bank will initiate its monetary policy easing cycle as early as September, providing a strong tailwind for equities.
Major Market Indexes Performance
The Dow Jones Industrial Average (DJI) was up approximately 1.1% or nearly 500 points on Wednesday, nearing its first record high since December. This follows a strong performance on Tuesday, August 12, when the blue-chip index gained 1.1% or 483.52 points to close at 44,458.61, with 22 of its 30 components finishing in positive territory.
The tech-heavy Nasdaq Composite (IXIC) also saw gains, rising 0.2% on Wednesday. On Tuesday, the Nasdaq closed at a new record high of 21,681.90, rallying 1.4% or 296.50 points, propelled by strong performance from big technology stocks. It even touched a new all-time intraday high of 21,689.68 on Tuesday.
Similarly, the S&P 500 (SPX) advanced 0.3% on Wednesday, albeit slightly off its all-time high recorded earlier in the morning. This comes after the benchmark index closed at a new record high of 6,445.76 on Tuesday, climbing 1.1%. During Tuesday's intraday trading, Wall Street's most observed benchmark also posted a new all-time high of 6,446.55. All 11 broad sectors of the S&P 500 ended in positive territory on Tuesday, with Technology Select Sector SPDR (XLK) and Communication Services Select Sector SPDR (XLC) leading the way, rising 1.6% and 1.9% respectively.
The overall market sentiment remains overwhelmingly positive, largely due to the less-than-expected inflation rate for July, which saw the Consumer Price Index (CPI) rise by a modest 0.2% monthly and remain unchanged at 2.7% on a yearly basis. This data has significantly reinforced market expectations for a Federal Reserve rate cut in September, with futures markets now pricing in approximately a 95% chance of a 25 basis point reduction.
Upcoming Market Events
The focus for investors remains squarely on monetary policy and economic data. Following Tuesday's encouraging inflation figures, market participants are keenly awaiting further signals from the Federal Reserve. Several Fed officials are scheduled to speak today, with their comments being closely monitored for any insights into the central bank's stance on interest rates.
Looking ahead, the next significant economic data release will be the Producer Price Index (PPI) report, detailing wholesale inflation, scheduled for Thursday, August 14. Economists anticipate this report to show a slight acceleration in inflation, rising to 2.4% in July from 2.3% in June. This report, along with another jobs report, will be crucial for the Fed's decision-making ahead of its September 17 meeting.
In terms of corporate earnings, today, August 13, saw several companies report their results. Performance Food Group Company (PFGC) announced its fourth-quarter and full-year fiscal 2025 results, with a webcast held this morning. Other companies expected to report earnings today include Cisco Systems (CSCO), Stratasys (SSYS), Vaxart (VXRT), OrganiGram Holdings (OGI), B Riley Financial (RILY), Pagseguro Digital (PAGS), Allogene Therapeutics (ALLO), Innoviz Technologies (INVZ), and Global-e Online (GLBE). Looking slightly further out, Lowe's Companies, Inc. (LOW) is set to host its Second Quarter 2025 Earnings Conference Call on Wednesday, August 20.
Major Stock News and Developments
Several individual stocks made headlines today with significant price movements and corporate announcements:
Apple (AAPL) climbed nearly 2% on Wednesday, extending its August surge that has seen shares rise from $202 to over $230. The tech giant reportedly plans to launch a new suite of AI-powered products, including robots, smart speakers with displays, and security cameras, alongside an updated, "lifelike" Siri capable of multi-user communication. Future plans also include thinner iPhones, foldable smartphones, a 20th-anniversary iPhone, smart glasses, a new headset, and a foldable device combining MacBook and iPad functionalities. However, the company is also facing a class-action lawsuit alleging misrepresentation of Siri's advanced AI features and delays in their integration into the iPhone 16 product cycle.
Microsoft (MSFT) saw its shares drop nearly 2% on Wednesday. Despite this, the software giant reported exceptional fourth-quarter fiscal 2025 results, with its Azure cloud platform surpassing $75 billion in annual revenues, marking a 34% growth. Microsoft continues to expand its global infrastructure, now boasting over 400 data centers across 70 regions, with all Azure regions now AI-first and supporting liquid cooling. Analysts maintain a positive outlook, citing the company's strong leadership in AI and cloud computing.
Nvidia (NVDA) shares fell approximately 1% on Wednesday. The chipmaker is navigating a complex geopolitical landscape, with reports indicating that Chinese regulators have ordered large tech companies to suspend purchases of Nvidia's H20 GPUs. This comes amidst news that Nvidia has agreed to pay a 15% charge on its H20 chip sales in China to the U.S. government to secure export licenses. Adding to concerns, Nvidia's next-generation GPU, Rubin, may face production delays at TSMC (TSM) due to a redesign aimed at better competing with AMD's (AMD) upcoming MI450. Despite these headwinds, Nvidia's stock has seen a meteoric rise, hitting a $4.48 trillion market capitalization on August 7, and its continued strength has significantly influenced the S&P 500 and Nasdaq.
Tesla (TSLA) gained ground on Wednesday, contributing to a nearly 11% climb since August 5, nearing six consecutive days of gains. This momentum is attributed to a healthier tech market, rising electric vehicle sales (potentially driven by the impending end of the $7,500 federal tax credit in September), and recent updates from CEO Elon Musk regarding the company's Full Self Driving (FSD) product. Tesla's Robotaxi business is also reportedly expanding in Austin and the Bay Area. Furthermore, Deutsche Bank AG (DB) significantly increased its stake in Tesla by 20.8% in the first quarter, now holding over 10 million shares valued at approximately $2.61 billion. However, Tesla is also facing a class-action lawsuit alleging misleading statements regarding its Robotaxi business and Autopilot capabilities.
Other notable movers include CAVA Group (CAVA), which plunged 16% after reporting disappointing earnings and cutting its outlook. AI cloud provider CoreWeave (CRWV), an Nvidia partner, plummeted 20% following a wider-than-expected quarterly loss. In corporate acquisition news, Gildan Activewear (GIL) announced its intent to acquire HanesBrands (HBI) for $2.2 billion, a deal that saw HanesBrands shares fall over 9% on Wednesday after a significant jump on Tuesday due to acquisition rumors.
The market's performance today underscores the continued investor confidence in the face of easing inflation and the strong anticipation of a Federal Reserve rate cut. While individual stock performances show a mixed bag, particularly within the tech sector, the broader market remains in rally mode, closely watching upcoming economic indicators and corporate results.
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.