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Stock market today: Dow, S&P 500, Nasdaq rise as Fed rate cut bets surge after inflation data

Updated Wed, Aug 13, 2025, 9:40 AM 1 min read

In corporate news, Circle (CRCL) fell Wednesday after the company announced it would sell 10 million shares on the heels of its first earnings report since its explosive public debut. Cava (CAVA) shares also dove after the company issued its first annual sales growth target cut. CoreWeave (CRWV) posted losses at the open as the company's operating income guidance fell below expectations as its cost of debt mounts, despite beating revenue estimates on strong demand for AI.

Looking ahead, Cisco (CSCO) is Wednesday's earnings headliner after the closing bell.

NasdaqGS - Nasdaq Real Time Price USD

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Stocks rise at the open

US stocks moved higher on Wednesday after the open as expectations for Fed interest rate cuts rose.

The tech-heavy Nasdaq Composite (^IXIC) and the Dow Jones Industrial Average (^DJI) rose more than 0.5%, while the benchmark S&P 500 (^GSPC) gained 0.4%.

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Within the S&P 500, the Consumer Discretionary Sector (XLY) was up 0.7% , while the Technology Sector (XLK) climbed more than 0.6%.
Treasury yields fall after Bessent urges Fed to lower rates

US Treasury yields fell on Wednesday as traders increased bets that the Federal Reserve would cut interest rates at its September meeting following a rise in core inflation.

At the same time, Treasury Secretary Scott Bessent urged the Fed to cut interest rates by 150 basis points in an interview with Bloomberg on Wednesday, maintaining political pressure on the central bank.

The 10-year Treasury yield (^TNX) fell 4 basis points to 4.25%, and the 30-year yield (^TYX) dropped to 4.84%.
Tencent earnings, trade truce lift China tech stocks

As my colleague Jenny McCall notes below, strong domestic liquidity in China and positive sentiment from the US trade truce have boosted Chinese stocks in recent months.

On Wednesday, that rally continued in top Chinese stocks, as recent inflation data boosted hopes for US interest rate cuts and tech companies gained greater clarity around the sale of Nvidia and AMD chips in China.

Tencent (0700.HK) gained 4.7% after the WeChat parent company reported revenue growth of 15%, above estimates. The company is also accelerating AI research to keep up with the competition, which includes Alibaba (BABA), ByteDance, and US companies OpenAI and Anthropic.

US-listed shares of e-commerce company Alibaba rose 3.6%, while JD.com (JD) added 2%. Baidu (BIDU) climbed 2.5%, and PDD Holdings (PDD) rose 1.9%.
VIX fear gauge sinks to lowest level since December

The VIX (^VIX) volatility index, a key fear gauge in markets, slipped to 14.49 on Wednesday morning, hitting its lowest level since late December 2024.

Despite geopolitical tensions and lingering tariff uncertainty, there are a few reasons why markets are pricing in fewer swings.

For one, investors are holding a lot of cash and buying assets at lower prices during sell-offs, according to Bloomberg. Second, the global economy appears to be holding up better than investors expected after President Trump unleashed "Liberation Day" tariffs in April. At that time, the VIX spiked to 52.

Bloomberg reports:

Read more here.
Good morning. Here's what's happening today.
Bitcoin isn't the reason for crypto's breakout summer

The crypto world has had room to run this year amid a series of legislative wins and new financial initiatives. But notably, the big news items don't really involve bitcoin (BTC-USD), Yahoo Finance's Hamza Shaban notes in today's Morning Brief.

Hamza writes:
Japan's Nikkei hits all-time high

The Nikkei 225, the primary index for the Tokyo Stock Exchange, is trading at all-time highs amid optimism that confusion over the recent US-Japan trade agreement is being addressed in addition to the renewed strength in Big Tech.

Domestically, Japan's key auto industry is cautiously optimistic that the the positive will outweigh any drag coming from tariffs.

"The Nikkei was not able to hit a record until today because chip-related shares and auto shares dragged on the index," Takamasa Ikeda, senior portfolio manager at GCI Asset Management, told Reuters.
China’s $11 trillion stock market stages steady resurgence

Chinese stocks have risen in recent months, helped by strong domestic liquidity and despite a lack of major catalysts.

Bloomberg News reports:

Read more here.
The best points I have heard this morning on CoreWeave

CoreWeave (CRWV) was teed up to let down investors last night.

And it did on several fronts.

First, the company's net loss was much higher than consensus.

Second, capital expenditures were a whopping $1 billion higher sequentially. And third, capex may climb another $500 million in the current quarter.

While I appreciate the company's revenue backlog of $30.1 billion doubled year over year, the company's mixed results and high debt load are real causes for concern. Hence, the sharp pre-market pullback.

Here are two important call outs this morning from DA Davidson analyst Gil Luria:
Cava crashing

Cava (CAVA) is getting run over premarket to the tune of 23%.

Bottom line on this one: When you are valued as a high-growth stock and you don't deliver high growth, your stock will take a beating.

Same restaurant sales only rose 2.1%.

The company slashed its full-year same-restaurant sales guidance.

The earnings call wasn't exactly alarming — the company appears to still be structurally sound.

But a slower economy and increased competition is weighing on the brand's results. We heard the same exact tone at Chipotle (CMG) and Starbucks (SBUX) this earnings season.

The positive here: Cava is testing salmon for its menu. Who doesn't like salmon in a $15+ salad bowl?!

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