August 16, 2025

Wall Street woke up to a mixed but hopeful morning on Friday, August 15, 2025. U.S. stock futures showed a cautious tilt upwards, with the Dow Jones Industrial Average futures jumping about 0.66%, or nearly 297 points, to reach 45,294. This strong start is fueled mainly by a surge in health-care stocks, especially UnitedHealth Group (UNH), which rocketed more than 11% in pre-market trading. Why the big jump? Berkshire Hathaway surprised the market with a fresh $1.6 billion stake in UnitedHealth, sparking excitement reminiscent of Buffett’s classic bets on tough, recession-proof businesses. Health-care companies, often seen as safe havens when markets get shaky, got another boost after Goldman Sachs mentioned they could enjoy “margin tailwinds” if wages cool and premiums rise, possibly lasting into early 2026. This helped the Dow outperform, while the S&P 500 inched up 0.15% near 6,500 and the Nasdaq-100 fell slightly by 0.07%, hovering just under 23,915. The Nasdaq’s little slump is mainly due to chipmakers hitting speed bumps. Applied Materials (AMAT) tumbled about 14% after warning that demand for advanced memory chips from China has weakened. This sliced nearly $900 million off their revenue forecast and reminded everyone that despite AI hype, chip supply and demand issues are still very real. Sandisk also dragged tech down with a 10% drop after reporting a quarterly loss. Adding to the market story was hotter inflation data. The Producer Price Index (PPI) for July came in much higher than expected, at +0.9% month-on-month instead of the predicted +0.2%. This surprised traders hoping for a big 50 basis point interest rate cut from the Federal Reserve in September. Now, markets are pricing in a 78% chance of a smaller 25 basis point cut, and only a 15% chance of a bigger cut. One senior bond trader at Citi summed it up: “The Fed’s still on track to ease, but the data is telling them to do it slowly. A hotter inflation print this late in the game is like stepping on a garden hose — the water pressure builds, and you have to control the release.” Worldwide, the mood was mixed. Asian markets had a split day, with Japan’s Nikkei up 0.6% but Shanghai Composite down 0.4% after weak Chinese credit growth data. Europe showed some gain with the DAX and FTSE 100 moving up slightly, hinting that global investors are willing to take some risks despite inflation fears. The U.S. dollar stayed strong above 103.7, which could pressure exporters once the U.S. market opens fully. Big winners today include UnitedHealth Group and Nucor (NUE), which climbed 5–6% following Berkshire Hathaway’s increased stake in the steelmaker. On the flip side, Applied Materials is the big loser, leading the market's decline with its weak guidance. For traders, this day offers clear chances to rotate into safe, cash-rich sectors like health care and industrials while staying wary of tech’s shaky ground. Long-term investors should note the market is shifting its leadership and keeping a close eye on inflation and policy changes that can shake up the game fast. Keep an eye out at 10:00 a.m. ET for the U.S. consumer sentiment data and any fresh remarks from the Fed, which might tip the scales further. Snapshot (August 15, 2025): - Dow Jones Futures: 45,294, +0.66% (led by UnitedHealth health-care rally) - S&P 500 Futures: 6,500.25, +0.15% (mixed sectors) - Nasdaq-100 Futures: 23,914.75, -0.07% (chip sector weakness) Bottom line? The Dow shines today on health-care power, but the tech-heavy Nasdaq reminds us that inflation, rate moves, and sector troubles keep the market’s dance spicy and unpredictable. Stay nimble, friends!

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Tags: U.s. stock futures, Dow jones, Health-care stocks, Inflation data, Tech stocks, Federal reserve,