Wall Street hovered near record highs today as investors balanced upcoming earnings, Federal Reserve policy signals, and shifting capital flows. While mega-cap technology stocks remain in the spotlight, it is the small- and mid-cap segments that are quietly attracting a growing share of investor attention.

The U.S. stock market is hitting new highs, but a notable shift is unfolding beneath the surface: small-cap equities are outpacing their megacap peers, signaling that investor appetite is broadening as Federal Reserve rate-cut hopes grow stronger.

U.S. stocks leaned higher to end the week, with the Dow Jones Industrial Average pushing toward a fresh record as traders priced in growing odds of a September Fed cut. Gains were led by health-care—notably UnitedHealth after disclosure of a Berkshire stake—while semiconductors underperformed on China-demand worries.

U.S. stocks pulled back from record levels after July producer prices rose more than expected, cooling enthusiasm for a near-term jumbo Fed cut. At the open, the S&P 500 and Nasdaq were modestly lower while Treasury yields climbed, reflecting stickier inflation pressures than Tuesday’s CPI suggested.

U.S. stocks pushed higher again, with the S&P 500 and Nasdaq notching fresh record territory, as traders priced in high odds of a September Fed rate cut following cooler July inflation.

August 12, 2025 — Headline U.S. inflation cooled a touch in July at 2.7% year-over-year, while core ran a bit firmer at 3.1%, a combo that’s kept hopes alive for a Fed cut as soon as September. Stocks tilted higher on the print. CBS NewsWall Street Journal