Traders on the New York Stock Exchange witnessed a buoyant start to Wednesday, August 12, 2025, as futures tied to the S&P 500 and Nasdaq 100 advanced. This positive trend follows a record-setting trading session fueled by favorable inflation data. S&P futures experienced a modest climb of 0.2%, with Nasdaq 100 futures reflecting a similar rise. Meanwhile, Dow Jones Industrial Average futures surged by 136 points, or 0.3%.
The major U.S. indexes are coming off a productive trading day, marked by the S&P 500 and the tech-heavy Nasdaq Composite achieving new record highs. The S&P 500 gained 1.1%, closing at 6,445.76, while the Nasdaq finished 1.4% higher at 21,681.90. The Dow Jones Industrial Average also saw an uptick of approximately 483 points, or 1.1%, ending the day at 44,458.61. Notably, the Russell 2000 Index surged nearly 3%, benefiting from the favorable borrowing rates that often favor small-cap stocks.
Investor optimism was buoyed on Tuesday as inflation data came in lower than anticipated, alleviating worries about rising prices due to tariffs. Current trading data from the CME’s FedWatch Tool suggests that market participants are pricing in a nearly 94% likelihood of a rate cut by the Federal Reserve in its upcoming September meeting. As the economic landscape continues to evolve, the upcoming producer price index report on wholesale inflation will add to the narrative. This report is particularly significant as it precedes the Federal Reserve’s Jackson Hole Symposium scheduled for August 21-23, which is expected to influence the central bank’s future policy decisions.
However, not all market observers are convinced by the recent gains. Warren Pies, co-founder of 3Fourteen Research, expressed caution regarding the rally in small-cap stocks. “We’ve had some seasonal buying in the beginning of August, and I think people are starting to jump the gun and misinterpret that as this summer melt-up that everyone wants to believe in,” Pies stated during an appearance on CNBC’s “Closing Bell.” He advised that concerns surrounding the labor market and overall growth may be overshadowed by the market’s current enthusiasm.
In company news, shares of Cava, the Mediterranean restaurant chain, plummeted by 24% after reporting disappointing second-quarter revenue growth and subsequently lowering its same-store sales forecast for the year. Similarly, shares in CoreWeave, a provider of artificial intelligence infrastructure, fell roughly 8% despite announcing robust revenue growth, reflecting a mixed performance in its latest quarterly earnings.
As investors navigate these developments, the focus will remain on economic indicators and corporate earnings that could shape market sentiments in the weeks ahead. The interplay between inflation data, Federal Reserve policy, and consumer confidence will be crucial in determining the trajectory of the markets.
Original Source: https://www.cnbc.com/2025/08/12/stock-market-today-live-updates.html
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Publish Date: 2025-08-13 16:38:00
