S&P 500, Nasdaq hit new closing highs on rate cut hopes

S&P 500, Nasdaq hit new closing highs on rate cut hopes

By Saeed Azhar, Johann M Cherian and Sanchayaita Roy

Wed August 13, 2025 4:24 PM  

All three indexes started the day way up and though the Dow stayed that way, almost immediately the tech indexes started falling, losing everything around 1 pm but starting a gradual recovery to have modest gains at close. But even the modest gains gave them a second straight day of record highs as the market remains ebullient over the weak economic data, especially inflation staying steady, now virtually guaranteeing a rate cut next month. There’s a case to be made that valuations are very high so everyone was just taking their profits out of tech after yesterday’s big rally.  

There is of course the large underlying concerns of whether the tariffs will create only temporary inflation or long-term.  But as for the here and now, everyone is very happy that Q2 earnings are coming in very healthy, which is the most critical litmus test of all. But caution remains since we know that the full impact of the tariffs haven’t yet been felt on prices or earnings, but that it’s coming.  At 16.9, volume is creeping closer to the 4-week average of 18.3 billion. 

DJ: 44,458.61  +483.52      NAS: 21,681.90  +296.50      S&P: 6,445.76  +72.31        8/12

DJ: 44,922.27  +463.66      NAS: 21,713.14  +31.24        S&P: 6,466.58  +20.82        8/13

Wed 8-13-25 4:24 pm S&P 500, Nasdaq hit new closing highs on rate cut hopes | Reuters