Market Wrap | US Stocks Surge on Rate Cut Hopes and Sector Gains

On August 13, 2025, the U.S. stock market saw gains across major indices, with the S&P 500 rising 0.32%, the Dow Jones Industrial Average up 1.04%, and the Nasdaq Composite increasing 0.14%. This positive momentum was driven by expectations of a rate cut by the Federal Reserve, with traders anticipating a 100% probability of a 25 basis point reduction at the September meeting. This outlook is supported by moderate inflation data and comments from U.S. Treasury Secretary Scott Besant, who hinted at a potential 50 basis point cut due to weak employment figures.

The S&P sectors showed a mixed performance today, with several industries outperforming the broader market. The healthcare, discretionary, energy, communication services, materials, industrials, real estate, and financial sectors all managed to surpass the S&P 500. Notably, the healthcare, discretionary, energy, and materials sectors demonstrated exceptional performance. Conversely, the consumer staples sector moved in the opposite direction of the S&P 500.

UnitedHealth Group shares rose 3.91% today, driven by dividend news and broad market support. Eli Lilly saw a 3.29% increase following FDA approval for a new Alzheimer's drug, which boosted investor confidence. Accenture's stock rose 3.28%, attributed to strategic investments in Gen AI and acquisitions in high-growth areas. Alibaba Group's shares climbed 3.63%, fueled by positive sentiment from recent strategic partnerships. AstraZeneca's stock rose 3.45%, as the iCaReMe Global Registry positions the company as a leader in real-world evidence.

Bolt Projects saw a remarkable surge of over 556% as its revenue growth was driven by the increasing demand for its Vegan Silk Technology Platform, which significantly boosted investor confidence. Meanwhile, Webtoon experienced an 81.20% rise, attributed to its strategic partnership with Disney, which is expected to enhance its content library and engage its global user base. On the other hand, Color Star faced a significant drop of 68.21% due to investor concerns over sustainability amidst fierce competition. Veea Inc. also saw a decline of 43.34%, following a 98.44% decrease in revenue for 2024, leading to increased losses.

The Federal Reserve's policy remains uncertain as officials interpret varied economic data, with upcoming meetings expected to involve real-time decisions. Market expectations point to a 100% chance of a 25 basis point rate cut at the September meeting, influenced by mild July inflation data and remarks by Treasury Secretary Bessent. Bridgewater Fund has divested Chinese stocks like Alibaba and increased holdings in Nvidia. Apple is focusing on AI, developing robotics for stores and manufacturing, a new conversational Siri version, and a home security ecosystem.