Stock market today: Dow, S&P 500, Nasdaq futures rise as Fed rate cut bets surge after inflation data

US stock futures climbed on Wednesday amid increasing expectations that the Federal Reserve will cut interest rates at its next meeting, following the latest inflation data.

Futures attached to the Dow Jones Industrial Average (YM=F) rose 0.2%, the benchmark S&P 500 (ES=F) inched up 0.1, and the tech-heavy Nasdaq 100 (NQ=F) gained 0.2%.

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44,689.00

+131.00

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As of 6:00:00 AM EDT. Market Open. YM=FES=F NQ=F

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In premarket trading, Circle (CRCL) fell after the company announced it would sell 10 million shares on the heels of its first earnings report since its explosive public debut. Cava (CAVA) shares also dove after the company issued its first annual sales growth target cut. CoreWeave (CRWV) saw losses too despite beating revenue estimates on strong demand for AI.

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At close: August 12 at 4:00:02 PM EDT Advanced Chart

In day trading, stocks roared after the release of the July CPI report, with the S&P 500 and Nasdaq both touching new records. Though the data showed inflation had ticked up, it increased by less than expected. The results boosted bets the Fed would cut interest rates at its September policy meeting, especially in light of recent warnings signs the labor market is weakening.

Later this week, investors will get two more snapshots on the state of the economy with the release of the Producer Price Index on Thursday and retail sales data on Friday.LIVE3 updates

1 min ago

Jenny McCall

China’s $11 trillion stock market stages steady resurgence

Chinese stocks have risen in recent months, helped by strong domestic liquidity and despite a lack of major catalysts.

Bloomberg News reports:

Read more here. 44 mins ago

Brian Sozzi

The best points I have heard this morning on CoreWeave

CoreWeave (CRWV) was teed up to letdown investors last night.

And it did on several fronts.

First, the company's net loss was much higher than consensus.

Two, capital expenditures were a whopping $1 billion higher sequentially. And three, capex may climb another $500 million in the current quarter.

While I appreciate the company's revenue backlog of $30.1 billion doubled year over year, the company's mixed results and high debt load are real causes for concern. Hence, the sharp pre-market pullback.

Here are two important call outs this morning from DA Davidson analyst Gil Luria: 59 mins ago

Brian Sozzi

Cava crashing

Cava (CAVA) is getting run over pre-market to the tune of 23%.

Bottom line on this one: when you are valued as a high growth stock and you don't deliver high growth, your stock will take a beating. Good rule of thumb, and this is the case for Cava today.

Same restaurant sales only rose 2.1%.

The company slashed its full year same-restaurant sales guidance.

The earnings call wasn't exactly alarming — the company appears to still be structurally sound.

But a slower economy and increased competition is weighing on the brand's results. We heard the same exact tone at Chipotle (CMG) and Starbucks (SBUX) this earnings season.

The positive here: Cava is testing salmon for its menu. Who doesn't like salmon in $15+ salad bowl!

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