S&P 500 Gains and Losses Today: Index Hits Record High as Expectations of a Rate Cut Rise

Spencer Platt / Getty Images The S&P 500 and Nasdaq climbed over 1% to all-time highs after Tuesday's inflation report raised expectations a rate cut could come soon

Key Takeaways

The S&P 500 rose 1.1% on Tuesday, Aug. 12, 2025, closing at a record high after the latest inflation print boosted expectations for a September rate cut. Shares of United Airlines and Delta Air Lines took off after low-cost rival Spirit warned that it may be forced to cease operations. Cardinal Health shares tumbled after the company announced a plan to acquire Solaris Health in a bid to boost its presence in urology markets.

Major U.S. equities indexes climbed to all-time highs Tuesday after a report showed the annual rate of inflation held stead in July, boosting expectations the Federal Reserve could decide to lower interest rates at its meeting in September.

The S&P 500 rose 1.1% and the Nasdaq gained 1.4% to set closing records. The Dow added 1.1%, leaving it roughly 1% away from a new closing high.

In a filing with the Securities and Exchange Commission, Spirit Aviation Holdings (FLYY) warned it may be unable to continue operations, citing an insufficient cash supply and difficulties in navigating operational challenges. Shares of the low-cost airline, which emerged from bankruptcy in March, plunged more than 40%, while shares of rival carriers rose. United Airlines (UAL) shares logged Tuesday's top performance in the S&P 500, jumping 10.2%. Delta Air Lines (DAL) shares gained 9.2%.

Paramount Skydance (PSKY) stock surged 8.4%. With Tuesday's push higher, shares of the newly combined entertainment giant roared back from losses posted in the prior session after the announcement of a $7.7 billion deal with TKO Group (TKO) to acquire the exclusive broadcasting rights for the sports firm's Ultimate Fighting Championship (UFC) franchise. Raymond James analysts suggested the UFC deal could signal the beginning of a more aggressive approach toward spending on content and sports rights by Paramount's management team, now led by Skydance Media founder David Ellison.

Several semiconductor stocks also gained ground, with shares of NXP Semiconductors (NXPI) and Onsemi (ON) adding 7.3% and 6.2%, respectively. The iShares Semiconductor ETF (SOXX) advanced 3.2%.

Cardinal Health (CAH) shares suffered the steepest drop in the S&P 500 on Tuesday, falling 7.2% after the company announced a $1.9 billion deal to acquire Solaris Health. With the transaction, the provider of healthcare products and services aims to expand its presence in urology markets. Cardinal revealed the planned transaction in conjunction with its fiscal fourth-quarter results. Although adjusted profits topped forecasts, revenue came in below expectations, reflecting continued pressure after last year's expiration of its contracts with pharmacy benefit manager OptumRX.

Story Continues

Shares of Axon Enterprise (AXON), maker of the Taser and other law enforcement equipment, dropped 6.1% after SEC filings revealed that several executives sold significant stakes in the company. Investors often view sales by company insiders as an indication of wavering confidence in a stock's near-term trajectory. Axon shares tore higher at the beginning of August after the company reported strong earnings results, boosted by demand for its AI-enabled products, but the stock has given back most of those gains over the past week.

Albemarle (ALB) shares slipped 3.4% on Tuesday, reversing a portion of the upswing posted in the prior session as news of a shutdown at a major mine in China suggested possible relief from oversupply in the lithium market. Albemarle, the largest producer of the key battery component, said Tuesday that its La Negra lithium processing plant in Chile was operating normally after a local official said authorities were investigating an incident that occurred last week.

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