Traders work at the New York Stock Exchange on August 12, 2025.
NYSE
Futures tied to the S&P 500 and Nasdaq 100 inched lower early Wednesday as investors come off a record-setting session that saw encouraging news on the inflation front.
S&P futures slipped 0.39%, while Nasdaq 100 futures ticked down 0.12%. However, futures tied to the Dow Jones Industrial Average dropped 7 points, or less than 0.1%.
In after-hours trading, Cava shares plunged more than 22% after the Mediterranean restaurant chain reported disappointing second-quarter revenue growth and lowered its same-store sales forecast for the full year. CoreWeave shares dropped about 9% as the artificial intelligence infrastructure provider delivered a mixed quarter, despite robust revenue gains.
The major U.S. indexes are coming off of a strong trading session, which saw the S&P 500 and tech-heavy Nasdaq Composite close at fresh record highs. The S&P 500 added 1.1% to settle at 6,445.76, while the Nasdaq ended 1.4% higher at 21,681.90. The Dow Jones Industrial Average added about 483 points, or 1.1%, to close at 44,458.61.
The Russell 2000 Index jumped nearly 3% during the session as small-cap stocks are generally considered a beneficiary of lower short-term borrowing rates.
Stocks traded higher Tuesday as inflation data was tamer than expected, soothing investor fears that tariffs are not spiking prices. Traders are now pricing in a nearly 94% chance of a rate cut at the Federal Reserve’s September meeting, per trading data from the CME’s FedWatch Tool.
Thursday’s producer price index report on wholesale inflation will add another piece of the economic picture. The report comes ahead of the Fed’s Jackson Hole meeting on Aug. 21-23, which could also help shape expectations for the central bank’s next policy move.
Not all investors came away convinced by Tuesday’s strong moves. 3Fourteen Research co-founder Warren Pies said the moves in small-cap names may not be what they seem in this late-cycle environment.
“We’ve had some seasonal buying in the beginning of August, and I think people are starting to jump the gun and misinterpret that as this summer melt-up that every wants to believe in,” Pies said on CNBC’s “Closing Bell.” “I think there is some concerns in my mind about the labor market and the growth story and the market’s kind of glossing over them.”
