2025.08.1320:00:58UTC+00S&P 500, Nasdaq Extends Record as Fe Rate Cut Bets

U.S. stocks concluded Wednesday on a positive note, continuing their recent upward momentum as expectations grew for a Federal Reserve interest rate cut in September. The S&P 500 increased by 0.3%, and the Nasdaq inched up by 0.1%, with both indices briefly reaching record highs. Meanwhile, the Dow Jones climbed 463 points. This advance followed Tuesday's surge, which was fueled by inflation data that came in lower than expected, bolstering hopes for monetary easing. Traders have fully priced in a September rate cut, with some predicting a reduction of 50 basis points. Gains were led by the materials, healthcare, and consumer cyclical sectors. Notable performers included Advanced Micro Devices (AMD), which rose by 5.4%, and Paramount Skydance, which surged by 36.7%. However, several mega-cap tech stocks, such as Nvidia, Alphabet, and Microsoft, experienced declines. On the earnings front, Brinker International saw a 1.5% increase after surpassing profit forecasts, whereas Cava plummeted 16.6% following a revision in its full-year sales projections.