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U.S. stock markets maintained their northward journey for two successive days closing higher on Wednesday. High expectations for a September interest rate cut and strong second-quarter earnings results boosted investors’ confidence in risky assets like equities. A sector churn was visible as market participants’ preferences shifted to cyclical stocks from the growth-oriented technology stocks. All three major stock indexes ended in positive territory.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 1% or 463.66 points to close at 44,922.27. Notably, 24 components of the 30-stock index ended in positive territory and six finished in negative territory. The blue-chip index is currently 0.4% away from its all-time high recorded in December 2024.
The tech-heavy Nasdaq Composite finished at 21,713.14, rising 0.1%, due to the strong performance by big corporations. This marked a new closing high for the tech-laden index. During intraday trading, the index recorded a new all-time high of 21,803.75.
The S&P 500 advanced 0.3% to finish at 6,466.58, marking a new closing high for the index. During intraday trading, Wall Street’s most observed benchmark posted a new all-time high of 6,480.28. Out of the 11 broad sectors of the broad-market index, 10 ended in positive territory, and one remained unchanged.
The Materials Select Sector SPDR (XLB), the Health Care Select Sector SPDR (XLV), the Energy Select Sector SPDR (XLE) and the Consumer Discretionary Select Sector SPDR (XLY) rose 1.9%, 1.6%, 1.2% and 1.4%, respectively.
The fear gauge CBOE Volatility Index (VIX) was down 1.6% to 14.49. A total of 16.4 9 billion shares were traded on Wednesday, lower than the last 20-session average of 18.3 billion. Advancers outnumbered decliners on the NYSE by a 4.05-to-1 ratio. On the Nasdaq, a 2.53-to-1 ratio favored advancing issues.
Rate Cut Hope Skyrockets
Market participants are highly hopeful of the first rate cut of 2025 by the Fed in its upcoming September FOMC meeting. Significantly weak job additions in the last three consecutive months and moderate inflation data for July bolstered investors’ expectations for a rate cut.
The CME FedWatch currently shows a 100% probability that the central bank will reduce the benchmark lending rate by 25 basis points in September. This probability was 84% just before the release of the inflation data on Aug. 12. Moreover, 6.2% respondents are expecting a 50-basis point cut in September. The existing Fed funds rate is in the range of 4.25- 4.5%.
Strong Q2 Earnings Results
Elbit Systems Ltd. (ESLT - Free Report) came up with quarterly adjusted earnings of $3.23 per share, beating the Zacks Consensus Estimate of $2.57 per share. This compares to earnings of $2.08 per share a year ago. The company posted revenues of $1.97 billion, surpassing the Zacks Consensus Estimate by 4.43%.
Performance Food Group Co. (PFGC - Free Report) came up with quarterly adjusted earnings of $1.55 per share, beating the Zacks Consensus Estimate of $1.45 per share. This compares to earnings of $1.45 per share a year ago. The company reported revenues of $16.94 billion, surpassing the Zacks Consensus Estimate by 0.23%.
Rigetti Computing Inc. (RGTI - Free Report) , a pioneer in full-stack quantum-classical computing, reported second-quarter 2025 adjusted loss per share of $0.05, narrower than the loss per share of $0.07 in the prior-year quarter. The metric also surpassed the Zacks Consensus Estimate by 16.7%. The company reported total revenues of $1.8 million, missing the Zacks Consensus Estimate by 5.7%.
Consequently, the stock prices of Rigetti Computing, Elbit Systems and Performance Food Group advanced 6.4%, 5.6% and 3%, respectively. Performance Food Group currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
For the week ended Aug. 8, U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 3 million barrels from the previous week.
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Stock Market News for Aug 14, 2025
U.S. stock markets maintained their northward journey for two successive days closing higher on Wednesday. High expectations for a September interest rate cut and strong second-quarter earnings results boosted investors’ confidence in risky assets like equities. A sector churn was visible as market participants’ preferences shifted to cyclical stocks from the growth-oriented technology stocks. All three major stock indexes ended in positive territory.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 1% or 463.66 points to close at 44,922.27. Notably, 24 components of the 30-stock index ended in positive territory and six finished in negative territory. The blue-chip index is currently 0.4% away from its all-time high recorded in December 2024.
The tech-heavy Nasdaq Composite finished at 21,713.14, rising 0.1%, due to the strong performance by big corporations. This marked a new closing high for the tech-laden index. During intraday trading, the index recorded a new all-time high of 21,803.75.
The S&P 500 advanced 0.3% to finish at 6,466.58, marking a new closing high for the index. During intraday trading, Wall Street’s most observed benchmark posted a new all-time high of 6,480.28. Out of the 11 broad sectors of the broad-market index, 10 ended in positive territory, and one remained unchanged.
The Materials Select Sector SPDR (XLB), the Health Care Select Sector SPDR (XLV), the Energy Select Sector SPDR (XLE) and the Consumer Discretionary Select Sector SPDR (XLY) rose 1.9%, 1.6%, 1.2% and 1.4%, respectively.
The fear gauge CBOE Volatility Index (VIX) was down 1.6% to 14.49. A total of 16.4 9 billion shares were traded on Wednesday, lower than the last 20-session average of 18.3 billion. Advancers outnumbered decliners on the NYSE by a 4.05-to-1 ratio. On the Nasdaq, a 2.53-to-1 ratio favored advancing issues.
Rate Cut Hope Skyrockets
Market participants are highly hopeful of the first rate cut of 2025 by the Fed in its upcoming September FOMC meeting. Significantly weak job additions in the last three consecutive months and moderate inflation data for July bolstered investors’ expectations for a rate cut.
The CME FedWatch currently shows a 100% probability that the central bank will reduce the benchmark lending rate by 25 basis points in September. This probability was 84% just before the release of the inflation data on Aug. 12. Moreover, 6.2% respondents are expecting a 50-basis point cut in September. The existing Fed funds rate is in the range of 4.25- 4.5%.
Strong Q2 Earnings Results
Elbit Systems Ltd. (ESLT - Free Report) came up with quarterly adjusted earnings of $3.23 per share, beating the Zacks Consensus Estimate of $2.57 per share. This compares to earnings of $2.08 per share a year ago. The company posted revenues of $1.97 billion, surpassing the Zacks Consensus Estimate by 4.43%.
Performance Food Group Co. (PFGC - Free Report) came up with quarterly adjusted earnings of $1.55 per share, beating the Zacks Consensus Estimate of $1.45 per share. This compares to earnings of $1.45 per share a year ago. The company reported revenues of $16.94 billion, surpassing the Zacks Consensus Estimate by 0.23%.
Rigetti Computing Inc. (RGTI - Free Report) , a pioneer in full-stack quantum-classical computing, reported second-quarter 2025 adjusted loss per share of $0.05, narrower than the loss per share of $0.07 in the prior-year quarter. The metric also surpassed the Zacks Consensus Estimate by 16.7%. The company reported total revenues of $1.8 million, missing the Zacks Consensus Estimate by 5.7%.
Consequently, the stock prices of Rigetti Computing, Elbit Systems and Performance Food Group advanced 6.4%, 5.6% and 3%, respectively. Performance Food Group currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
For the week ended Aug. 8, U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 3 million barrels from the previous week.