Tag:

Breaking News: Markets

Stocks Rise to Record Highs on Fed Rate Cut Hopes – August 14, 2025

by Priya Shah – Business Editor August 13, 2025

written by Priya Shah – Business Editor

Stocks Continue Climb Amid Rate Cut Hopes, Strong earnings – Russell 2000 Outperforms

NEW YORK – August 14, 2025 – U.S. stocks extended their gains Wednesday, building on a record-setting session fueled by cooling inflation data and increasing expectations for a Federal Reserve interest rate cut in September. The market’s positive momentum was further supported by a robust second-quarter earnings season.

The advance comes after Tuesday’s market surge triggered by a tamer-than-expected inflation report for July. Traders are currently pricing in a nearly 100% probability of a rate reduction at the Fed’s September meeting, according to data from the apple shares rose 1.6% while Paramount Skydance soared 36.7%.

A notable shift in investor behavior saw funds rotating away from large-cap technology stocks – frequently enough referred to as the “Magnificent seven” – and towards smaller companies. The Russell 2000 led the charge, gaining 2% on Wednesday.

Understanding the Dynamics: Interest Rates, Earnings, and Market Rotation

The recent market activity highlights the interconnectedness of several key economic factors. Lower interest rates generally benefit small-cap stocks by reducing their cost of capital and possibly stimulating consumer spending. This makes them attractive alternatives when the expectation of rate cuts is high.

Strong corporate earnings provide a basic underpinning for stock market gains. As Baird investment strategist Ross Mayfield explained, “This has been a really notable earning season, which showcases kind of a corporate resilience from all the headwinds that we saw across the summer.” He further noted the “really nice kind of breadth” observed in the earnings reports, indicating widespread positive performance.

The shift away from “Magnificent Seven” stocks – a group of dominant tech companies – and towards smaller companies represents a classic market rotation. Investors often reallocate capital to different sectors and market capitalizations based on changing economic conditions and perceived opportunities.

Looking ahead, Thursday’s producer price index report, focusing on wholesale inflation, will provide further insight into the economic landscape.This data will be closely scrutinized in advance of the Fed’s annual

August 13, 2025 0 comments

Business

Stock market today: Live updates

by Priya Shah – Business Editor August 12, 2025

written by Priya Shah – Business Editor

Markets Hold Steady Ahead of Crucial Inflation Data

Investors Await CPI Report for Fed Clues

U.S. stock futures saw minimal movement Monday as traders geared up for a pivotal inflation report expected to shape the Federal Reserve’s next monetary policy decisions.

Inflation Watch Dominates Sentiment

Futures contracts for the Dow Jones Industrial Average dipped slightly, losing 20 points, or 0.05%. Nasdaq 100 futures saw a modest uptick of 0.11%, mirroring a 0.2% gain in S&P 500 futures. All eyes are on Tuesday’s consumer price index (CPI) data for insights into inflationary pressures and the Fed’s stance on interest rates, with the S&P 500 trading near an all-time high.

Economists surveyed by Dow Jones anticipate the July CPI to rise 0.2% month-over-month and 2.8% annually. Core CPI, excluding volatile food and energy prices, is projected to increase 0.3% from the previous month and 3.1% over the year.

President Donald Trump‘s decision earlier Monday to extend his 90-day pause on increased tariffs for Chinese goods appeared to be largely overlooked by investors. The market seems to be banking on imminent interest rate reductions to offset potential economic headwinds from tariffs.

“Investors seem to be betting on upcoming interest rate cuts and counting on them to counteract the drag from tariffs. We think it is too early to make that assumption.”

—Brent Schutte, Chief Investment Officer at Northwestern Mutual Wealth Management

Schutte further cautioned that “The degree of tariff impacts and how long they will take to work through the economy remain open questions. In the meantime, high equity valuations may heighten the impact any negative developments have on stock returns.”

Key Economic Indicators on the Horizon

Looking ahead, Wall Street will also scrutinize Thursday’s producer price index (PPI) report, which provides a gauge of wholesale inflation. Both the CPI and PPI releases precede the Federal Reserve’s Jackson Hole symposium later in August and the subsequent September policy meeting. Market sentiment, as reflected by the CME’s FedWatch Tool, indicates an approximately 87% probability of a rate cut occurring next month.

The continued focus on inflation underscores its importance in financial markets. For instance, the U.S. economy has demonstrated resilience, with the unemployment rate holding steady at 3.7% in July, reflecting a robust labor market despite ongoing economic adjustments (U.S. Bureau of Labor Statistics).

Traders execute transactions on the trading floor of the New York Stock Exchange.

The market’s anticipation of Federal Reserve action, combined with the ongoing influence of global trade dynamics, creates a complex environment for investors navigating toward the end of the summer.

August 12, 2025 0 comments

Business

Stock market today: Live updates

by Priya Shah – Business Editor August 11, 2025

written by Priya Shah – Business Editor

Stocks Hover Near Records as Inflation Data Looms

Market awaits key inflation reports that could shape Fed’s next move

U.S. stock markets treaded water early Monday, with major indices hovering on the edge of all-time highs. Investors are keenly awaiting a week packed with crucial inflation data that could influence future interest rate decisions.

Inflation Data to Dictate Monetary Policy

The Dow Jones Industrial Average saw a slight dip of 81 points, or 0.2%, while the S&P 500 gained 0.1%. The Nasdaq Composite climbed 0.3%. This week’s Consumer Price Index (CPI) report on Tuesday and the Producer Price Index (PPI) on Thursday are critical for assessing the path of interest rates, particularly for the Federal Reserve’s September meeting.

Jay Woods, chief global strategist at Freedom Capital Markets, emphasized the importance of the upcoming economic indicators. He stated, “The most important thing is the CPI data. That will definitely dictate monetary policy.”

Rate Cut Expectations Face Scrutiny

The Federal Reserve’s Jackson Hole meeting, scheduled for August 21-23, could also set the tone for monetary policy. While the market currently prices in an 87% probability of a rate cut in September, analysts suggest this optimism might be premature. “I’m getting a little concerned that the market is going to end up being disappointed,” commented **Sam Stovall**, chief investment strategist at CFRA Research. “The Fed will have a conundrum to deal with if inflation remains sticky and if the consumer remains willing to spend — where is the need to cut rates?”

Last week, the Nasdaq closed at a new record high, and the S&P 500 finished very near its own milestone. The Dow also ended the week on a positive note, offering a rebound after a prior week’s disappointing employment report.

Market Faces Seasonality and Valuation Concerns

Despite recent gains, some investors are questioning the market’s resilience amidst high valuations, a potentially cooling macroeconomic outlook, and tariff impacts, all occurring during a typically weaker seasonal period. Woods suggested the market might be entering a “digestion phase.” He added, “We may get a little bit of sideways action in this market, which is not a bad thing.”

The U.S. benchmark 10-year Treasury yield remained steady around 4.18% on Monday morning, providing a backdrop for the equity market’s cautious trading. This stability comes as markets digest mixed economic signals globally.

Traders are seen working on the floor of the New York Stock Exchange on June 23, 2025.

August 11, 2025 0 comments

World

Stock Market Rally: Apple’s Trump Deal and Tariff Headlines Drive Gains

by Priya Shah – Business Editor August 9, 2025

written by Priya Shah – Business Editor

okay, here’s a breakdown of the investment activity and news discussed in the provided text, focusing on the CNBC Investing Club with Jim Cramer:

Key Themes & Market Overview:

Earnings Season Strong: A very high percentage (81%) of S&P 500 companies have reported positive earnings surprises, and the magnitude of those surprises is above the 10-year average. Most sectors are showing earnings growth year-over-year.
drug Stock Pressure: The pharmaceutical industry is facing notable headwinds due to potential government intervention to lower prescription prices, and concerns about potential price increases of up to 250%.
Market sensitivity: Even good earnings reports are being met with scrutiny, with investors focusing on forward guidance and specific data points (like weight loss trial results).

individual stock Updates (CNBC Investing Club Portfolio):

Here’s a summary of the actions taken and rationale for each stock mentioned:

Eli Lilly (Lilly): Downgraded to a 3 (Looking for a Sell Level). Strong earnings were overshadowed by disappointing results from a Phase 3 trial of its obesity pill, orforglipron. Price target was cut. Worst performing stock of the week (-18%).
DuPont: Reiterated a 1 (Buy-Equivalent). Reported a “beat and raise” quarter with strong cash flow. The stock reaction was seen as underwhelming, so 100 shares were added to the portfolio. Rose less than 1% this week.
Coterra Energy: Reiterated a 3 (Hold). Positive results driven by production,but Jim Cramer believes the company can’t overcome negative commodity prices. Price target trimmed. Gained nearly 1.4% this week.
Eaton: Upgraded to a 1 (Buy). “Beat and raise” quarter, but investors were concerned about the third-quarter outlook and 2025 guidance. Despite this, the Club raised its price target. Lost nearly 4.9% this week.
Disney: Upgraded to a 1 (Buy). Mixed quarter (sales miss, earnings beat), but strength was seen in key areas like streaming, sports, and experiences. Price target raised. Lost more than 3.5% this week.
Texas Roadhouse: Maintained a 2 (Hold). sales beat expectations, but profitability was hurt by high beef prices. Demand remains strong. Lost 5.5% this week.
Cisco Systems: Earnings report is coming up next week. (Newest addition to the portfolio).

Crucial Notes about the CNBC Investing Club:

Trade Alerts: Subscribers receive trade alerts before Jim Cramer executes trades.
waiting Periods: There are waiting periods (45 minutes after an alert, 72 hours after TV mention) before Cramer buys or sells to allow others to act on the data.
* Disclaimer: The information is provided with no fiduciary duty or guarantee of profit.

Let me know if you’d like a deeper dive into any specific stock or aspect of this report!

August 9, 2025 0 comments

Business

Asia stock markets today: live updates

by Priya Shah – Business Editor August 8, 2025

written by Priya Shah – Business Editor

Japan’s Nikkei Surges 2%, Topix Hits Record Amid Tech Rally

SoftBank Shares Soar on Strong Earnings

Japanese stocks rallied on Friday, driven by a significant climb in the Nikkei 225, which jumped over 2%. The broader Topix index also saw substantial gains, surpassing the 3,000 threshold for the first time and reaching an all-time high. Technology, consumer cyclicals, and real estate sectors were at the forefront of this advance.

Nikkei and Topix Reach New Milestones

The benchmark Nikkei 225 index advanced by 2.22% to 41,968.68 by late morning local time. Concurrently, the Topix index climbed 1.65% to 3,037.11. Earlier in the session, the Topix had set a new all-time record, breaking the significant 3,000-point mark.

Illustrative stock chart icon.

The Nikkei’s performance was bolstered by strong showings in technology firms, consumer discretionary stocks, and the real estate sector.

SoftBank Group Shares Hit Record High After Earnings Beat

Shares of SoftBank Group experienced a dramatic surge, climbing 13% to achieve a new record high on Friday. This sharp increase followed the company’s announcement of a better-than-expected profit for the fiscal first quarter. This marks the Japanese investment firm’s fourth consecutive day of gains.

Illustrative stock chart icon.

SoftBank Group’s stock performance reflects positive investor reaction to its financial results. For further details on SoftBank’s earnings, one can refer to the full story [here](https://www.cnbc.com/2025/08/08/softbank-group-shares-first-quarter-earnings-beat-estimates.html).

Asian Markets Show Mixed Performance

In contrast to Japan’s positive showing, Chinese and Hong Kong stocks opened lower on Friday. The Hang Seng Index in Hong Kong fell by 0.76%, while mainland China’s CSI 300 index dropped 0.25% in early trading.

Across the Asia-Pacific region, markets presented a mixed picture. As of early Friday trading, South Korea’s Kospi index had declined by 0.13%, while the Kosdaq saw a modest increase of 0.65%. Australia’s S&P/ASX 200 benchmark was down 0.29%.

Earlier in the day, US futures showed an upward trend in early Asian trading hours.

Ahead of the market open, Japan’s Nikkei 225 futures indicated a higher start, with contracts in Chicago and Osaka trading above the previous day’s closing level. Conversely, Hong Kong’s Hang Seng index futures pointed to a weaker opening, while Australia’s S&P/ASX 200 futures suggested a lower start for the Australian market.

Investor Sentiment Turns Cautious

Investor sentiment regarding stocks has seen a notable decline, reaching its lowest point since the market peak in February. According to the latest weekly survey by the American Association of Individual Investors, bearish sentiment among individual investors has significantly increased.

This shift in sentiment is often viewed as a contrarian indicator by market strategists. Sam Stovall, chief investment strategist at CFRA Research, noted that a bearish poll can be encouraging, as it may signal that retail investors have already exited the market, potentially creating opportunities for increased buying activity.

The S&P 500 recently saw its largest one-week percentage drop in over a year, indicating a broader market sentiment shift (CNBC, 2025).

August 8, 2025 0 comments

Business

Stock market today: Live updates

by Priya Shah – Business Editor August 8, 2025

written by Priya Shah – Business Editor

Stocks Eye Upturn After Volatile Session

Futures Rise as Investors Weigh Tariffs and Fed Nominee

U.S. stock futures edged higher overnight following a mixed trading session that saw the Dow Jones Industrial Average experience significant swings. Market participants are closely monitoring President Trump’s trade policies and a key Federal Reserve nomination.

Tariffs Cast a Long Shadow

President Trump’s “reciprocal” tariffs, targeting dozens of U.S. trading partners, officially took effect at midnight Thursday. Notably, Syria faces a 41% duty, while Laos and Myanmar are subject to a 40% rate. Earlier, markets had shown optimism after the President announced his 100% tariff on imported semiconductor chips would exempt companies manufacturing within the United States.

Thomas Martin, senior portfolio manager at Globalt Investments, emphasized the ongoing impact of these trade actions. “There’s less turbulence with tariffs, but there’s still plenty of turbulence. There’s still plenty of questions out there as to how they’re going to affect companies’ decision making, supply chains, costs, margins, pricing, how it’s going to affect consumers and whatnot,” Martin told CNBC. “So I think there’s still a lot of a lot of uncertainty associated with the tariffs. It’s still the most important thing, at this point, that just has to be worked out.”

Fed Nomination Sparks Interest

In a late Thursday development, President Trump announced his selection of Stephen Miran, current Chair of the Council of Economic Advisors, to join the Federal Reserve Board of Governors. Miran is slated to fill the vacancy left by Adriana Kugler, who resigned last Friday, completing Kugler’s term which concludes in January.

Market Performance and Outlook

During Thursday’s regular trading, the Dow Jones Industrial Average declined approximately 224 points, or 0.5%. The S&P 500 finished down 0.08%, while the Nasdaq Composite managed a gain of nearly 0.4%. For the week, major averages are on track for gains: the S&P 500 is up 1.6%, the Dow is poised for a 0.9% advance, and the Nasdaq is set for a 2.9% climb.

Looking ahead to Friday’s trading, investors will be paying close attention to quarterly earnings reports from notable companies including Under Armour, AMC Networks, and Wendy’s. The U.S. economy added 194,000 jobs in July 2025, a slight increase from the previous month, indicating continued, albeit moderate, labor market expansion (U.S. Bureau of Labor Statistics, August 2025).

Traders were active on the floor of the New York Stock Exchange on August 5, 2025.

August 8, 2025 0 comments

Newer Posts

Older Posts