Evening Market Recap

Sophia Reyes · August 13, 2025 5:50 PM

Market Snapshot for Wednesday August 13^th, 2025

S&P 500 – 6,466.58 (+0.32%)

NASDAQ – 21,713.14 (+0.14%)

Dow Jones – 44,922.27 (+1.04%)

Market Performance

Dow rallies 400 points for a second day, S&P 500 closes at another record high.

Stocks extended their recent rally Wednesday, fueled by expectations that the U.S. Federal Reserve may lower interest rates, pushing major indexes to new record highs.

The Dow Jones Industrial Average surged 463.66 points, or 1.04%, closing at 44,922.27. The S&P 500 rose 0.32% to 6,466.58, while the Nasdaq Composite edged up 0.14% to 21,713.14, marking back-to-back record closes for both indexes. Tech stocks led the gains, with AMD climbing 5.4% and Apple adding 1.6%. Paramount Skydance shares soared 36.7%, highlighting continued momentum in select growth names.

The moves followed Tuesday’s rally, sparked by a softer-than-expected inflation report that bolstered hopes for a September Fed rate cut. Traders are now pricing in nearly a 100% chance of such a move, according to CME FedWatch data. Ross Mayfield, investment strategist at Baird, noted that a strong second-quarter earnings season has further supported market confidence, with next week expected to bring a fresh wave of retail earnings.

Investors also shifted focus away from megacap “Magnificent Seven” stocks toward smaller companies, driving the Russell 2000 up 2% Wednesday. Small-cap shares tend to benefit from lower interest rates, which reduce borrowing costs and potentially stimulate consumer spending.

Looking ahead, Thursday’s producer price index report on wholesale inflation will offer more insight into the economic landscape ahead of the Fed’s Jackson Hole symposium Aug. 21-23, which could shape expectations for the central bank’s next policy decisions.

Economic Takeaways –

• Rick Rieder, BlackRock’s chief investment officer for global fixed income, is among the 11 names that the Trump administration is considering to replace Federal Reserve Chairman Jerome Powell.
• US Treasury Secretary Scott Bessent made his most explicit call yet for the Federal Reserve to execute a cycle of interest-rate cuts, suggesting the central bank’s benchmark ought to be at least 1.5 percentage points lower than it is now.

Gold –

• Gold rose on Wednesday, lifted by a weaker dollar and falling Treasury yields, as mild U.S. inflation data cemented expectations for a Federal Reserve rate cut in September and nudged up bets on additional easing later this year.
• Spot gold gained 0.3% to $3,355.58 per ounce by 4:58 p.m. ET (2058 GMT).
• U.S. gold futures for December delivery settled 0.3% higher at $3,408.3.

Oil –

• Oil prices fell to over two-month lows on Wednesday after bearish supply guidance from the U.S. government and the International Energy Agency, while investors eyed U.S. President Trump’s threat of “severe consequences” if Russia’s Putin blocked peace in Ukraine.
• Brent crude futures settled down 49 cents, or 0.7%, to $65.63 a barrel. During the session it dropped to $65.01 a barrel, the lowest since June 6.

Crypto –

• Cryptocurrencies rallied on Tuesday, led by ether, which is now hovering below its record.
• The market began its steady climb after yesterday’s release of the consumer price index, which reinstilled hope in investors that the Federal Reserve could cut interest rates next month.
• Ether was last higher by about 7% at $4,578.73. Earlier, it traded as high as $4,636.30, its highest level since Dec. 3, 2021. It’s edging closer toward its November 2021 record of $4,866.01.
• Bitcoin hovers around $120,000.

Wolfe Research: U.S. Stock Fundamentals Stay Strong Amid Volatile Policies

In a Wednesday client note, Wolfe Research highlighted a robust earnings season as a key driver supporting the fundamental strength of the U.S. stock market.

“With U.S. policy—both tariff and monetary—remaining highly volatile this quarter, we view these results as very strong,” said Chris Senyek, Wolfe Research’s chief investment strategist. He added, “Although tariff uncertainty initially weighed on S&P 500 earnings forecasts following the Trump Administration’s Liberation Day, estimates have rebounded as companies continue to exceed expectations and offer solid forward guidance.

While seasonal volatility may increase in the weeks ahead, the underlying fundamentals remain healthy, particularly with long-term tailwinds, such as the AI spending trend, still intact.”

Bank of America Urges Investors to Buy Bonds Ahead of Fed Rate Cuts

With the Federal Reserve poised to cut interest rates, Bank of America is advising investors to maintain bond purchases.

“Although lower yields might typically reduce demand, the prospect of falling yields actually boosts it,” wrote strategist Yuri Seliger. He explained that investors are buying bonds ahead of the Fed’s rate-cutting cycle “to lock in higher yields while they can and to capture mark-to-market gains as yields decline.”

 Top Gainers

Several stocks experienced significant gains. Some of the top gainers included:

WEBTOON Entertainment (WBTN) +81.20%

Sapiens International (SPNS) +44.27%

Newegg Commerce (NEGG) +24.78%

Scilex Holding Company (SCLX) +18.85%

The Chemours Company (CC) +17.95%

Top Losers

The top US stock losers today, based on percentage change included:

CAVA Group, Inc. (CAVA) -16.63%

Centrus Energy (LEU) -13.77%

Maplebear, Inc. (CART) -11.51%

Global-E Online Ltd. (GLBE) -8.57%

Core Scientific, Inc. (CORZ) -8.34%

Notables

• Cisco beat by a penny on earnings and reported revenue that was slightly above projections.
• Warren Buffett has dropped out of the top 10 richest people in the world, according to the Bloomberg Billionaires Index as of Tuesday night.
• Goldman Sachs, which maintains a buy rating on Broadcom, raised its price target to $340 from $315 on Wednesday, suggesting nearly 9% potential upside from Tuesday’s closing price.
• Paramount Skydance surged over 31%, positioning the media giant for its strongest single-day gain on record.
• Cava fell 15% after reporting second-quarter revenue of $280.6 million, missing the LSEG consensus estimate of $285.6 million.
• Capri Holdings climbed more than 8% following a JPMorgan upgrade to overweight from neutral, with the bank citing a “path of multi-year sequential revenue growth” for the company.
• Shares of crypto exchange Bullish surged on Wednesday during the company’s debut on the New York Stock Exchange. The stock opened at $90, a 143% jump above its IPO price of $37, before trading was temporarily halted at roughly $102.44 per share.
• Warner Bros Discovery jumped nearly 7% after director Anton Levy bought 325,000 shares, according to a filling.
• Shares of Walmart slipped 2% on Wednesday after Amazon announced it would introduce free same-day delivery for fresh groceries.
• Shares of Paramount Skydance soared more than 22%, putting the media company on track for its best day since March 2020.
• In a Tuesday note, Deutsche Bank upgraded shares of Palo Alto Networks to a buy rating from hold.
• Within the communication services sector, Electronic Arts, Live Nation, Meta, and TKO Group hit new intraday highs. In technology, Advanced Micro Devices, Gen Digital, Broadcom, KLA, and Lam Research climbed to multi-year highs.
• Brinker International, the parent company of Chili’s jumped 8.8% after surpassing fiscal fourth-quarter earnings expectations. Brinker reported adjusted earnings of $2.49 per share on $1.43 billion in revenue, beating analysts’ estimates of $2.45 per share and $1.39 billion in revenue, according to LSEG data.
• Shares of Hanesbrands shed more than 6% in the premarket after the company agreed to be acquired by Gildan Activewear for $6 per share in cash and stock.
• Airlines surge – United (UAL), Delta (DAL), and American (AAL) jumped Tuesday after July CPI showed airfares rising for the first time in six months. Optimism for lower interest rates fueled broader consumer discretionary gains, lifting homebuilders, resorts, casinos, and major retailers.
• Tariff-sensitive names advance – Foot Locker (FL), lululemon (LULU), Toyota (TM), Boeing (BA), Target (TGT), and Nike (NKE) all gained as the U.S. gave China three more months to reach a trade deal.
• Lumentum (LITE) rose on an earnings beat and strong AI data center demand, while Webtoon Entertainment (WBTN) rallied on upbeat results and a new Walt Disney (DIS) comics partnership.Top of Form
• Engineering contractor KBR said on Wednesday it had secured a $2.46 billion contract from the National Aeronautics and Space Administration.

What to Watch Ahead

August 14: July PPI and expected earnings from Deere (DE), JD.com (JD), Tapestry (TPR), and Applied Materials (AMAT).
August 15: July retail sales, July industrial production, and preliminary August University of Michigan Consumer Sentiment.
August 18: Expected earnings from Palo Alto Networks (PANW).
August 19: July housing starts and building permits and expected earnings from Home Depot (HD) and Medtronic (MDT).
August 20: FOMC minutes and expected earnings from TJX Companies (TJX), Lowe’s (LOW), Analog Devices (ADI), Target (TGT), Estee Lauder (EL), and Baidu (BIDU).