The U.S. stock market continued its upward trajectory on Wednesday, August 13, 2025, extending gains from a robust Tuesday session fueled by encouraging inflation data. Investors remained overwhelmingly optimistic about the prospect of a Federal Reserve interest rate cut as early as September, propelling major indexes to fresh highs. The day's trading saw a mixed performance among individual stocks, with some high-profile companies facing headwinds from earnings reports, while others surged on corporate news.
Major Market Indexes Recap
Wall Street closed higher today, building on the momentum from yesterday's less-than-expected inflation figures. The benchmark S&P 500 (SPX) advanced 0.3%, marking its second consecutive day of new record highs. The index's continued ascent reflects a broad-based positive sentiment, with all 11 broad sectors of the S&P 500 ending in positive territory on Tuesday, including strong performances from technology and communication services.
The Dow Jones Industrial Average (DJI) also saw significant gains, rising 1%, or more than 400 points, to close just 0.2% shy of its first record close since December 2024. This strong showing from the blue-chip index underscores the market's confidence in the broader economic outlook.
Meanwhile, the tech-heavy Nasdaq Composite (IXIC) tacked on 0.1%, securing a record close for the fourth time in the last five sessions. The Nasdaq's consistent record-breaking performance highlights the enduring strength and investor appetite for growth-oriented technology companies, despite some individual tech giants experiencing pullbacks today.
The CBOE Volatility Index (VIX), often referred to as Wall Street's "fear gauge," dropped 9.4% to 14.73 on Tuesday, suggesting a decrease in market anxiety and an expectation of smoother trading ahead.
Key Company News and Stock Movements
Today's trading saw several notable individual stock movements following a flurry of corporate announcements and earnings reports. Fast-casual restaurant chain CAVA Group (CAVA) plunged 17% after reporting disappointing second-quarter earnings, including weaker-than-expected revenue growth and a lowered outlook for same-store sales. Similarly, AI cloud provider CoreWeave (CRWV) plummeted 21% after releasing its quarterly results, which showed a larger-than-expected loss and indicated that growth is being capped by supply shortages. Quantum computing company Rigetti Computing (RGTI) also saw its stock drop after missing both sales and earnings expectations for its second quarter. These companies had reported their results after the market close on Tuesday, August 12.
In other significant corporate news, UnitedHealth (UNH) shares gained nearly 4% after the insurer's board approved a dividend payout. Fellow Dow components Nike (NKE) and Merck (MRK) each advanced 3%. Paramount Skydance (PSKY), the newly merged entity of Paramount Global and Skydance Media, jumped nearly 40% without any immediate apparent news.
On the technology front, while the broader Nasdaq rose, some mega-cap tech companies experienced a mixed day. Microsoft (MSFT), Meta Platforms (META), and Broadcom (AVGO) each fell more than 1%, while Nvidia (NVDA), Alphabet (GOOG), and Tesla (TSLA) also lost ground. Counteracting this, Apple (AAPL) and Amazon (AMZN) both gained more than 1%. Additionally, NXP Semiconductors N.V. (NXPI) was a major gainer within the Nasdaq, surging 7.3%.
In the cryptocurrency space, 180 Life Sciences (ATNF) saw its shares soar after announcing plans to rebrand as ETHZilla and pursue an Ether treasury strategy. Crypto-firm Bullish (BLSH) made its stock market debut with an IPO that raised $1.1 billion, with its share price exceeding expectations.
Earnings Watch: Post-Market Reports and Upcoming Releases
The earnings season continues to be a focal point for investors, with many companies reporting robust results that have largely topped expectations. This has contributed to a rare positive trend in S&P 500 earnings revisions.
Following the market close on Tuesday, August 12, CAVA Group (CAVA), CoreWeave (CRWV), and Rigetti Computing (RGTI) were among the companies that released their quarterly figures, with their stock performance today reflecting the market's reaction to those announcements.
Looking ahead, several companies were expected to report before the market open on Wednesday, August 13, including Elbit Systems Ltd. (ESLT), Performance Food Group Co (PFGC), CAE (CAE), Brinker International, Inc. (EAT), Loar Holdings Inc (LOAR), Global-e Online (GLBE), HBM (HBM), Marex Group plc (MRX), and Nayax Ltd. (NYAX).
The spotlight after today's market close will be on Cisco Systems (CSCO), a major tech conglomerate. Analysts anticipate strong results from Cisco, with expectations of 11.5% earnings growth and 7% revenue growth year-over-year. Other companies slated to report after market close today include Stratasys (SSYS), Vaxart (VXRT), OrganiGram Holdings (OGI), B Riley Financial (RILY), Pagseguro Digital (PAGS), Allogene Therapeutics (ALLO), and Innoviz Technologies (INVZ).
Upcoming Market Events and Economic Calendar
The economic calendar for the remainder of the week holds important data releases that could further influence market sentiment. On Thursday, August 14, investors will closely watch the release of the July Producer Price Index (PPI), which provides insights into wholesale inflation, as well as the latest weekly jobless claims figures. The PPI is expected to show an increase, with the final demand PPI projected to rise to +2.5% year-over-year.
Friday, August 15, will bring key data on U.S. Retail Sales and the Michigan Consumer Sentiment Index. Retail sales are anticipated to climb, with a projected 0.5% month-over-month increase.
Beyond this week, market participants are keenly awaiting the Jackson Hole Economic Symposium, scheduled for August 21-23. Federal Reserve Chair Jerome Powell is expected to deliver an address, which could provide further clarity on the central bank's monetary policy outlook.
The primary driver of current market optimism remains the strong expectation for a Federal Reserve interest rate cut at its next FOMC meeting in September. This sentiment was significantly bolstered by the July Consumer Price Index (CPI) report, released yesterday, which showed a 0.2% increase month-over-month and a 2.7% year-over-year rise, falling below the anticipated 2.8%. While core CPI (excluding food and energy) rose 0.3% in July, it was in line with expectations, and the year-over-year core CPI of 3.1% was slightly above forecasts. The market is now pricing in nearly a 94% chance of a 25-basis point rate cut in September. This comes despite some Federal Reserve officials, such as Kansas City Fed President Jeffrey Schmid, indicating a preference for holding rates steady due to inflation remaining above the 2% target. However, Treasury Secretary Scott Bessent has even suggested the possibility of a more aggressive 150-175 basis point rate cut.
The confluence of easing inflation, a resilient earnings season, and strong expectations for monetary policy easing continues to fuel the current market rally, pushing major indexes to new record territories. Investors will remain vigilant, however, as upcoming economic data and Federal Reserve communications could shape the market's trajectory in the weeks ahead.
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.