(Recasts with preliminary close of trading)

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Traders fully price in 25 bps Fed rate cut in September

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Fed cut seen near certain after inflation data, Bessent

comments

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CoreWeave ( CRWV ) falls after larger-than-expected Q2 net loss

By Saeed Azhar, Johann M Cherian and Sanchayaita Roy

NEW YORK, Aug 13 (Reuters) - The benchmark S&P 500 and

Nasdaq indexes hit new closing highs for the second straight day

on Wednesday on hopes that the Federal Reserve was getting close

to a monetary easing cycle.

But the market reflected weakness in some technology stocks

after the previous day's strong gains.

Signs that U.S. tariffs on imports have not fully filtered into

headline consumer prices came as a relief for investors this

week as they seek insight on the impact of trade uncertainty on

the economy.

Some large technology stocks including Nvidia ( NVDA ), Alphabet

and Microsoft ( MSFT ) - among the so-called

Magnificent Seven stocks - were lower as investors searched for

new growth drivers.

"Valuations are elevated. I do think, though, at the end of

the day, the key will be the delivery of earnings, and that's

what we're seeing," said Katherine Bordlemay, co-head of client

portfolio management, fundamental equities at Goldman Sachs

Asset Management.

She said the dispersion of stock-level returns in the U.S.

is at one of the higher levels of the last 30 years.

Apple ( AAPL ) rose as Bloomberg News reported the company

is plotting expansion into AI-powered robots, home security and

smart displays.

According to preliminary data, the S&P 500 gained

21.01 points, or 0.33%, to end at 6,466.77 points, while the

Nasdaq Composite gained 32.08 points, or 0.15%, to

21,713.99. The Dow Jones Industrial Average rose 469.10

points, or 1.06%, to 44,927.71.

The Russell 2000 index, which tracks rate-sensitive

small-cap companies, added more gains to hit a six-month high.

Traders are now fully pricing in a 25 basis-point interest

rate cut, according to the CME's FedWatch Tool. The central bank

last lowered borrowing costs in December.

Treasury Secretary Scott Bessent said on Wednesday he thought an

aggressive half-point cut was possible, given recent weak

employment numbers.

Investors were also taking notice of other sectors following

the recent tech-led rally in U.S. stocks that has pushed

valuations of the S&P 500 above long-term averages.

Healthcare stocks, which have been beaten down for

much of the year, led gains among the 11 S&P 500 sectors.

Chicago Federal Reserve President Austan Goolsbee said on

Wednesday the U.S. central bank is grappling with understanding

whether tariffs will push up inflation just temporarily or more

persistently, which would inform its decision on when to cut

interest rates.

CoreWeave ( CRWV ), which is backed by Nvidia ( NVDA ), fell

sharply after the AI data center operator reported a

bigger-than-expected quarterly net loss.

Paramount Skydance ( PSKY ) jumped as the company won exclusive

broadcasting rights to the Ultimate Fighting Championship for

seven years.