Market Wrap | US Stocks Surge as Fed Rate Cut Hopes Boost Market

On August 8, 2025, U.S. stock indices closed higher, with the S&P 500 rising 0.78%, the Dow Jones Industrial Average gaining 0.47%, and the Nasdaq Composite increasing 0.98%. Morgan Stanley predicts that the August employment data will be pivotal in determining whether the Federal Reserve significantly cuts interest rates. Additionally, there is a 92.7% probability of a rate cut by the Federal Reserve in September, as per CME “FedWatch.” These factors are likely contributing to the positive movement in U.S. stock indices today.

In today's market, the technology, healthcare, and financial sectors outperformed the S&P 500. Conversely, the utilities and real estate sectors moved in the opposite direction of the S&P 500.

Apple shares rose 4.24% today, driven by the company's $100 billion investment in U.S. manufacturing, which has boosted investor confidence in its growth potential. Toyota Motor saw its stock price increase by 3.94%, as strategic moves by the company have positively influenced market sentiment. Novo Nordisk's shares surged 4.76%, fueled by strong revenue and profit growth from its diabetes and obesity drug franchises.

Today, the U.S. stock market saw significant movements across several key companies. Medirom Healthcare surged over 130%, driven by its partnership to install World ID devices in salons, enhancing customer authentication and privacy, which boosted investor confidence. Pineapple Financial rose nearly 74%, following its strategic partnership with a major technology firm to enhance its digital banking services. Meanwhile, Tpi Composites dropped over 54%, facing financial challenges that impacted its stock performance. Longeveron also saw a decline of nearly 47%, as its public offering diluted existing shareholders at a low price, indicating weak market positioning.

The selection process for the next Federal Reserve Chair is being expanded, with new potential candidates being considered. Morgan Stanley predicts that August employment data will be crucial in determining whether the Federal Reserve will implement significant interest rate cuts, indicating that a rising unemployment rate could support larger cuts. JPMorgan forecasts that the Federal Reserve will begin cutting rates in September 2025, contrary to earlier predictions of a December start. The probability of a Federal Reserve rate cut in September is currently at 92.7%, according to CME FedWatch. These developments could significantly impact market expectations and investor sentiment.