Podcast
Next Day Prep #88: Fed-Fueled Rally Small-Caps Soar, Rate Cut Odds Surge – Tuesday 8/12/2025
Key takeaways
- Market sentiment remains bullish, but tomorrow’s trading without major catalysts will test the rally’s strength. Watch support levels at 641 for SPY and 579 for QQQ for bullish confirmation.
Next Day Prep: Fed-Fueled Rally Small-Caps Soar, Rate Cut Odds Surge
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Market surged higher after in-line CPI print, with S&P 500 and Nasdaq hitting record highs. Broad-based buying signals strong conviction in the rally.
Overnight Headlines
- Fed rate cut expectations surged post CPI data, with a high probability of a 25-basis-point cut in September.
- Sectors like Communication Services, Tech, and Financials led the rally, while airlines and semiconductors saw explosive gains.
Economic Announcements
Quiet day for economic data awaited tomorrow, testing market momentum without fresh macro catalysts.
Earnings Highlights
Sea Limited (SE) saw a 19% jump post-earnings, showcasing strong growth in e-commerce and digital financial services.
Top Movers
Airlines (American, JetBlue) and semiconductors (Philly Semiconductor Index) stood out with significant gains, signifying a healthy uptrend.
Quick Trade Ideas
- KLA Corp (KLAC): Potential continuation play with an entry around 933 and targets at 940 and 945.
- Broadcom (AVGO): Another continuation play, looking for a breakout above 317 towards 320.
- Apple (AAPL) and Tesla (TSLA): Anticipation setups with key resistance levels to watch for potential breakouts.