Markets Soar on Fed Rate Cut Hopes and Strong Earnings

Major Indices Surged :

S&P 500 (SPX): +1.13%

Dow Jones (DJI): +1.10%

Russell 2000 (RUT): +2.99%

The S&P 500 closed above 6,400 for the first time on August 12, 2025, driven by a broad market rally fueled by optimism for a Federal Reserve rate cut in September.

The Dow Jones Industrial Average rose 1.1%, the Nasdaq gained 1.4%, and the Russell 2000 surged nearly 3%. The market rally was spurred by a Consumer Price Index (CPI) report indicating headline inflation at 2.7% year-over-year, slightly below the anticipated 2.8%, while core inflation increased to 3.1%, surpassing expectations.

On August 13, 2025, global stocks and U.S. stock futures, including the Dow, Nasdaq-100, and S&P 500, rose due to increased expectations of a Federal Reserve interest rate cut in September. The anticipation was fueled by the Labor Department's consumer-price index report, which showed steady inflation in July, supporting the case for a rate cut. Interest-rate futures indicated a 96% probability of a Fed rate cut next month, up from 86% on Monday.

Large-cap tech stocks, particularly those tied to AI like Nvidia, Microsoft, and Meta, led the S&P 500’s gains, with Meta nearing a $2 trillion market cap. Other highlights included Intel’s 5.6% stock rise after a meeting between its CEO and President Trump, and cannabis stocks soaring on potential marijuana reclassification.

Bitmine Immersion Technologies also gained ~6% after announcing plans to issue $20 billion in stock to buy more Ethereum.

8:00 am- Richmond Fed President Tom Barkin's speech

2:00 pm- Chicago Fed President Austan Goolsbee speaks

12:30 pm- Atlanta Fed President Raphael Bostic speaks

The index gained +1.10% to close at 44,458.61.

Support for the day: 44,339.11, with potential upside levels at 44,592.04 and 44,699.63.

The index closed at 23,839.20, with support for the day at 23,806.21 and potential upside levels at 23,850 and 23,900.

The index closed at 6,445.76, with support at 6,429.97 and potential upside levels at 6,450 and 6,460.

The price was trading at $644.30 pre-market, with support at $643.06 and potential upside levels at $645 and $646.

The price was trading at $581.76 pre-market, with support at $580.64 and potential upside levels at $582 and $583.

The price was trading at $228.15 pre-market, with support at $226.68 and potential upside levels at $230.10 and $231.22.

The price was trading at $301.70 pre-market, with support at $301 and potential upside levels at $302 and $303.

The price was trading at $28.54 pre-market, with support at $28.23 and potential upside levels at $28.86 and $29.03.

Brinker International, Inc. (EAT) is set to report its Q4 fiscal 2025 earnings on August 13, 2025, with expectations of a 50.9% EPS increase to $2.43 and an 18.6% revenue growth to $1.43 billion, driven by effective marketing, menu pricing, and operational improvements at Chili’s and Maggiano’s.

Despite potential margin pressures from labor and commodity inflation, strategic pricing and cost management are likely to support a bottom-line improvement.

The stock was trading at $149.03 pre-market, with support at $148.44 and potential upside levels at $149.66 and $151.81.

Elbit Systems Ltd., a Haifa, Israel-based defense electronics company, reported strong Q2 2025 financial results, posting a profit of $125.7 million, with a net income of $2.69 per share and adjusted earnings of $3.23 per share, alongside revenues of $1.97 billion.

The company's robust performance was driven by a $23.8 billion order backlog, fueled by increased demand from the Israel Ministry of Defense amid ongoing Middle East conflicts. Despite challenges from supply chain disruptions and geopolitical tensions, Elbit Systems remains committed to maintaining business continuity and enhancing production.

The stock was trading at $444 pre-market, with support at $442.22 and potential upside levels at $446.86 and $448.26.

Cisco Systems (CSCO) is set to report Q4 2025 earnings after market on August 13, 2025, with analysts expecting EPS of $0.98 and revenue of $14.62 billion, building on last quarter's $14.15 billion (up 11.4% YoY). The company, a leader in networking and AI infrastructure, has exceeded $1 billion in AI orders, driven by surging demand for AI datacenters and enterprise IT spending, positioning it for growth amid a subscription-based model and custom silicon advancements.

Key highlights include AI orders surpassing $600 million, potential market share expansion, and a valuation below peers, though geopolitical risks like US-China tensions and intense competition pose challenges.

The stock was trading at $71.68 pre-market, with support at $71.47 and potential upside levels at $72.07 and $72.30.

Alvotech (ALVO) is set to report its Q2 2025 earnings, with expectations of a 26-cent loss per share and $115.4 million in total revenues, driven by its two revenue segments: Product revenue from biosimilars Simlandi (Humira biosimilar) and Selarsdi (Stelara biosimilar), both developed with Teva Pharmaceuticals, and License and other revenue from partnerships.

Simlandi, launched in the U.S. in 2024, and Selarsdi, launched in Q1 2025, are yet to gain significant market traction. Investors are eager for sales updates and pipeline progress, including AVT05 (Simponi/Simponi Aria biosimilar) and AVT06 (Eylea biosimilar), both under regulatory review in the U.S. and EU with decisions expected by year-end, and AVT03 (Prolia/Xgeva biosimilar) with an FDA filing accepted in March 2025.

The stock was trading at $8.88 pre-market, with support at $8.695 and potential upside levels at $8.92 and $8.99.