Small businesses see growth despite tariffs and AI
Small businesses report seeing growth and hiring workers. Larger businesses are raising prices and laying off workers because of tariff concerns.
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U.S. stocks jumped after the opening bell on Wednesday, Aug. 13, as investors increasingly bet on interest rate cuts in the weeks ahead.
The Dow Jones Industrial Average gained 191 points or 0.4% to open near 44,650, while the broad S&P 500 Index tacked on 25 points or 0.4%, to start the session near 6,471. The Nasdaq Composite was up 109 points or 0.5%, near 21,791.
After a tame July inflation report, expectations jumped for a rate cut at the Federal Reserve’s policy meeting in September. The CME FedWatch tool that tracks the market’s expectations for a rate move at each Fed meeting suggests a more than 94% chance of a Fed rate cut. That’s higher than the roughly 85% chance ahead of the consumer inflation data.
The benchmark 10-year U.S. Treasury note lost about 4 basis points to trade near 4.25% in the morning.
Would a quarter-point rate cut be enough?
If the Fed decides to lower rates in September, policymakers should consider a half-point cut, Treasury Secretary Scott Bessent suggested in a Fox Business interview.
The CME FedWatch tool shows the market expects only a 0.25% cut.
Two days after the Fed left rates unchanged on July 30, revised data showed weaker job growth for May and June than official figures had previously indicated. Had the Fed received the revised data before the meeting, Bessent said it might have lowered rates instead of keeping them unchanged.
The Fed “could have been cutting in June, July,” Bessent said.
Separately, Bessent said he was “hopeful” Stephen Miran would be approved by the Senate to fill former Governor Adriana Kugler’s seat on the Federal Reserve Board by the September meeting. Kugler resigned on Friday, and Miran would finish out her term.
Corporate news
- Cava missed second-quarter revenue growth estimates and lowered its full-year same-store sales forecast. Shares of the restaurant chain slid 22% after the opening bell.
- Coreweave topped second-quarter sales expectations and increased its third-quarter and full-year revenue outlook above the Street’s view. Its adjusted net loss widened significantly from a year ago and missed analysts’ expectations. The stock fell more than 11%, one day before its IPO lockup was due to expire.
- Stablecoin issuer Circle said it plans to sell 10 million Class A shares to the public, 2 million of which will be offered by the company and the rest from shareholders. Cryptocurrencies have surged in recent weeks: Ethereum is up nearly 60% over the past month, and Solana is up 25%. Meanwhile, cryptocurrency exchange Bullish made its stock market debut Wednesday with the ticker BLSH.
- Brinker International, parent company of Chili’s and Maggiano’s, posted quarterly results that beat analyst expectations. Shares were 2% higher Wednesday morning.
- Tencent Holdings shares rose nearly 5% after the company announced a revenue beat.
Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.
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