A day of surprises: Wall Street climbs on soft inflation and bold moves

2 minutes read

13 August 2025

A day of surprises: Wall Street climbs on soft inflation and bold moves

The sun rose over Wall Street heavy with expectations, but markets had surprises in store. Traders hunched over screens, fingers poised, as the latest inflation data rolled in. For months, investors had watched economic figures, waiting for a sign, would prices keep climbing, or was relief in sight?

July’s consumer price growth landed soft. The number, 2.7% higher than last year, fell short of forecasts. Relief swept through the trading floor as if someone had opened a window. Michael Farr, market strategist at Hightower Advisors, reflected, “Stay disciplined. Don’t panic. If you have money to invest, you begin to invest”. Stocks took off. The S&P 500 rallied 1.1% to close at 6,445.76. The Nasdaq soared 1.4%, setting a new record at 21,681.90. Traders, emboldened by the news, began betting the Federal Reserve would cut rates by September. The Dow followed, up 1.1%. Futures stayed near flat, no rush, but plenty of optimism.

Across the globe, the mood echoed. Tokyo and Hong Kong shares jumped more than 1%. Jane Foley, currency strategist at Rabobank, explained, “Despite its robust tone in July, the USD has today proven that it is susceptible to renewed weakness on speculation that the Fed will adopt a dovish policy bias going forward. It is Rabobank’s view that the Fed may cut rates four times next year in addition to a move next month”. Us stocks - 2025-08-13T151501.352A bar chart showing the daily percentage gain of US stock indices

Winners, losers, and whispers on the floor

Big names made headlines. Intel shares leapt 5.6% after President Trump praised its new CEO. The President’s words—“He’s an amazing leader”, rippled through the market. Jeremy Allaire, Circle Internet Group CEO, saw his company's debut on the stock exchange. Despite reporting larger losses, revenue and reserve income surged 53%. Shares ticked up 1.3% as Allaire stated, “The validation that we've seen in Circle, and the sentiment around circle is really about people understanding that the internet is colliding with the financial system”.

Yet not all stories shimmered. Food chain Cava revised down its annual forecast. Shares slumped, leaving some investors uneasy. CoreWeave, an AI tech firm, beat revenue expectations but still dropped in after-hours trading. Bloomberg Intelligence’s David Dwyer, who tracks US equities and technology, noted, “It’s a reminder: great numbers aren’t always enough”.

Retail investors joined the excitement. Nate Byrne, a new trader, summed it up: “I bought tech ETFs in June, watching my portfolio pop after the Nasdaq’s close felt unreal. You dream about days like this.”

What’s next: Waiting for the fed’s signal

All eyes now turn to the Federal Reserve. The market’s verdict is almost unanimous, rate cuts look likely, but confirmation will come with new economic reports later this week. Susan Collins, President of the Boston Fed, commented, “Determining the right policy in this environment is complex. The sustained robust economic conditions allow the Fed to take the necessary time to thoroughly evaluate the diverse array of incoming data”.

As the trading day wrapped, brokers lingered to chat, some circling potential trades with red pens. Louise Chan, portfolio manager, summarised: “The atmosphere today was optimistic. And after months of uncertainty, it’s something we all needed.”

This day on Wall Street will be remembered not for a single figure, but for the shift it signalled, a window into a market embracing change, eager for opportunity, and guided by the voices of those who make it tick.

Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.