Market Recap – Wednesday, August 13, 2025
Stocks Close Higher Again as Small-Caps Lead the Way. Broader market shows strength while Big Tech takes a breather
Stocks extended their winning streak today, with the S&P 500 rising 0.32% and the Dow up 1.04%. The small-cap Russell 2000 stood out again, jumping nearly 2%, while the Nasdaq posted a smaller 0.14% gain. Beneath the surface, the equal-weight S&P had its best day since May, showing strong participation across sectors — not just the usual tech giants.
Small-cap stocks, regional banks, biotech (with Eli Lilly leading), chemicals, and homebuilders all saw solid gains. Retail favorites and heavily shorted names also caught a bid. Meanwhile, Big Tech took a bit of a breather, though Apple bucked the trend thanks to buzz around its AI and robotics initiatives. Lagging sectors included grocers and staples (weighed down by Amazon’s delivery expansion), big banks, semiconductors, software, and tobacco.
There wasn’t much in terms of major news or economic data. The main driver continues to be growing confidence in an upcoming Fed rate cut, supported by tame inflation data and low volatility. Treasury yields dropped, the dollar softened, and Bitcoin gained over 2%. Gold edged up slightly, while oil slipped 0.8%.
Fed-related chatter was steady but didn’t move markets much. Chicago Fed President Goolsbee said future meetings are “live,” noting inflation in services remains a concern. Atlanta’s Bostic stuck to his view that just one rate cut may be appropriate this year. Treasury Secretary Bessent reiterated he supports a 50 basis point cut in September and revealed the Fed chair search includes 11 candidates — some from the private sector.
Notable Gainers:
Sapiens (SPNS) +44.2%: To be acquired by Advent in a $2.5B deal.
Intapp (INTA) +15.4%: Beat earnings and raised guidance; strong AI-related demand.
Hillenbrand (HI) +12.6%: Reportedly exploring a potential sale.
Capri Holdings (CPRI) +12.3%: Upgraded by JPMorgan on improving sales momentum.
Venture Global (VG) +12%: Won an arbitration case and raised guidance.
AMD +5.4%: Reports suggest Nvidia may tweak chips to better compete with AMD.
Albemarle (ALB) +4.7%: Said recent lithium plant incident won’t impact sales.
Hanesbrands (HBI) +3.7%: Deal with Gildan confirmed.
Eli Lilly (LLY) +3.3%: Launched Mounjaro weight-loss injector in India.
Apple (AAPL) +1.6%: AI and robotics efforts gaining attention.
Notable Decliners:
CoreWeave (CRWV) -20.8%: Despite strong Q2 results, concerns about margins and upcoming share lockup weighed on stock.
Cava Group (CAVA) -16.6%: Missed sales expectations and cut full-year outlook.
Stratasys (SSYS) -12%: Lowered full-year revenue forecast due to weak customer spending.
Walmart (WMT) -2.5%: Slipped after Amazon announced big expansion of its grocery delivery services.
Here’s Our Take
Today’s action was quiet on the surface but continued to show growing confidence in the broader market. With rate cut hopes building and more parts of the market joining the rally — especially small caps and cyclicals — this looks like a broadening of the bull run, not just a tech-driven bounce. That said, some of the recent winners are now facing valuation concerns, and Big Tech cooled slightly. Market participants are still focused on inflation trends and the Fed’s next move, with Thursday’s PPI and jobless claims data likely to provide the next spark. Until then, the path of least resistance remains higher, but pockets of volatility may return as we head into the fall.
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