S&P 500 Hits Record High Amid Rising Rate Cut Expectations

The S&P 500 surged 1.1% on Tuesday, August 12, 2025, closing at an all-time high as cooling inflation data fueled speculation of a September rate cut by the Federal Reserve. The Nasdaq gained 1.4%, while the Dow Jones Industrial Average advanced 1.1%, nearing its own record.

Airline stocks soared after Spirit Airlines warned of potential operational collapse, sending shares plunging over 40%. United Airlines and Delta Air Lines capitalized on the news, jumping 10.2% and 9.2% respectively. Paramount Skydance shares ROSE 8.4% amid the broad market rally.

Healthcare distributor Cardinal Health tumbled after announcing its acquisition of Solaris Health, a MOVE aimed at expanding its urology market presence. The deal failed to impress investors despite the company's strategic ambitions.