Today’s action reflected a renewed risk-on mood for equity investors, with rate-cut hopes, strong index closes, and select corporate headlines capturing the spotlight as U.S. markets embrace cautious optimism headed into September. U.S. stocks surged to fresh record highs Tuesday after data showed inflation remained steady in July, rekindling hopes for a Federal Reserve rate cut in September. The S&P 500 climbed 1.1% to close at 6,445.76, a new all-time high. The Dow Jones Industrial Average advanced 1.1%, ending at 44,458.61. The Nasdaq Composite rose 1.4%, finishing at 21,681.90—another historic close for the tech-heavy benchmark. The Russell 2000 index led gains among major indices, soaring 3% to settle at 2,282.78, reflecting renewed risk appetite and strong participation by small-cap stocks.
Macroeconomic Reports
July’s Consumer Price Index or the CPI confirmed inflation across the U.S. had held steady, marginally undercutting economists’ forecasts. This “tame” inflation data reassured markets and bolstered speculation of an imminent rate cut. The labor market still sends mixed signals, with prior months’ employment figures recently revised lower. The CBOE Volatility Index (VIX) ticked down as traders positioned for a potential monetary easing cycle.
Federal Reserve, Yield Curve & Interest Rates
The July inflation report increased bets that the Federal Reserve will cut rates in September. Treasury yields slid as short-term bonds rallied, reacting to the heightened prospects of monetary easing. The Fed’s official stance remains “wait and see,” keeping its benchmark rate steady and emphasizing data dependence amid persistent inflation somewhat above the 2% target. Markets now largely expect action next month if moderation in growth and employment persists. The 2-yr treasury closed lower ar 3.741% and the 10-yr closed at 4.30%.
Tariff and Trade News
President Trump’s tariffs, effective since August 7, remain central to global market dynamics. The White House’s sweeping measures affecting 69 trade partners—ranging from 10% to 39%—continue to fuel volatility and prompt companies to reassess global supply chains. Reportedly, tariffs have brought in a record $27.7B in July as President Trump calls the haul ‘incredible for our country’.
Corporate Headlines & Share Price Movements
NVIDIA (NVDA) extended its leadership in AI and accelerated computing. Shares moved upward to new all-time high of $183.76 and closed at $183.16, with continued enthusiasm following its recent product launches at SIGGRAPH and investor optimism in the new hardware cycle.
Tesla (TSLA) advanced as public roll-out of its autonomous robotaxi service approaches. The company’s focus on scaling up production before the expiration of the EV tax credit buoyed sentiment, and shares maintained their rally trajectory, closing at $340.84, +.53%.
Meta Platforms (META, $790.00) enjoyed a solid 3.15% advance, as investors shrugged off privacy headlines and focused on the company’s robust growth outlook and AI leadership. Options markets saw continued bullish positioning.
McDonald’s (MCD) closed at $301.64, -.89%, as strong U.S. same-store sales reversed prior weakness. The company’s value-oriented strategy is winning back customers, though analysts remain cautious over sector headwinds.
Oracle rose to $253.86. +.47% amid profit-taking after recent gains. Fiscal results revealed double-digit revenue growth powered by cloud and AI, keeping the company top-of-mind for institutional investors.
Palantir Technologies rose 2.35% to $186.97, notching a record revenue quarter and winning new high-profile government and commercial contracts. Analyst upgrades and robust AI-driven analytics are fueling momentum, even as occasional insider selling garners scrutiny.
Rio Tinto Group (RIO) closed at $63.10 (+1.54%). The miner announced a new investment in Australian bauxite mining recently, but continues to face earnings pressure from tariffs and soft commodity prices.
Mergers, Acquisitions & Buyouts
Cardinal Health (CAH, $146.30, -7.21%) announced the acquisition of Solaris Health for $1.9B deal to bolster its urology business, a deal that pressured its shares but signaled ambition within the healthcare space.
IPO Activity (NYSE/Nasdaq)
Three companies debuted on U.S. exchanges today:
- Highview Merger Corp (HVMC)—$10.00 initial price, closed at $10.01 (+0.10%).
- Magnitude International Ltd (MAGH)—$4.00 IPO price, closed at $4.06 (+1.50%).
- Mckinley Acquisition Corporation (MKLYU)—$10.00 IPO price, closed at $9.98 (-0.20%).
The robust pipeline continues to reflect market optimism, with 213 IPOs YTD, up 90% over last year.
