Stock Futures Rise Before Trump Putin Meeting as Fed Rate Cut Bets Cool

TLDR

Table of Contents

Dow futures up 0.6% while S&P 500 flat and Nasdaq down 0.2% ahead of Trump-Putin summit
UnitedHealth stock jumps 11% after Berkshire Hathaway disclosed buying 5 million shares
Applied Materials plunges 14% on weak China demand and tariff concerns
Producer Price Index rose 0.9% in July, cooling Fed rate cut expectations to quarter-point
Markets await retail sales data and Trump-Putin meeting in Alaska on Friday

U.S. stock futures pointed higher Friday morning as investors prepared for a high-stakes summit between President Donald Trump and Russian leader Vladimir Putin. The Dow Jones Industrial Average futures climbed 260 points or 0.6%, while S&P 500 futures gained 0.1%.

Nasdaq 100 futures bucked the trend, falling 0.2% as technology stocks faced pressure. The mixed performance reflected ongoing uncertainty about Federal Reserve policy and geopolitical developments.

UnitedHealth emerged as a standout performer, surging 11% in after-hours trading. The healthcare giant’s rally came after Warren Buffett’s Berkshire Hathaway disclosed purchasing 5 million shares in the company.

The investment from the legendary investor boosted confidence in the health insurance sector. UnitedHealth’s strong premarket performance helped lift Dow futures higher than other major indexes.

Intel shares also gained ground Friday morning on reports the U.S. government was considering taking a stake in the chipmaker. President Trump had met with Intel’s CEO on Monday after previously calling for his resignation.

Fed Rate Cut Expectations Cool

Thursday’s Producer Price Index data significantly altered market expectations for Federal Reserve policy. Prices jumped 0.9% in July, marking the largest monthly increase in more than three years.

This is unprecedented:
Core CPI inflation is back above +3% and PPI inflation is at its hottest since March 2022.
Meanwhile, President Trump is calling for a 300 BASIS POINT rate cut and is set to replace Fed Chair Powell.
Are you ready for what's next?
(a thread) pic.twitter.com/Q6p4Q2sekH
— The Kobeissi Letter (@KobeissiLetter) August 14, 2025

The inflation reading forced investors to recalibrate their rate cut predictions. Markets now price in a 93% chance of a quarter-point reduction in September, down from earlier expectations of a potential half-point cut.

“Markets are clinging to the September Federal Reserve cut, perhaps as that is seen as making up for July’s hold now that the jobs picture has changed so dramatically,” wrote ING analyst Francesco Pesole. The 10-year Treasury yield held steady at 4.282%, showing little movement from Thursday’s close.

Applied Materials suffered a sharp decline, dropping 14% in premarket trading. The semiconductor equipment maker issued weak fourth-quarter forecasts citing sluggish demand from China.

The company’s warning highlighted ongoing concerns about tariff impacts on U.S. technology firms. China represents a key market for American chip equipment manufacturers.

Summit and Economic Data in Focus

Investors turned attention to Friday’s scheduled meeting between Trump and Putin in Alaska. Market participants hoped for progress on ending the Russia-Ukraine conflict.

The geopolitical summit added another layer of uncertainty to trading decisions. Currency markets showed the dollar weakening ahead of the high-level talks.

Friday’s economic calendar includes retail sales data and the University of Michigan consumer confidence survey. The retail sales report will provide insight into consumer spending patterns under current tariff policies.

Wall Street will closely examine whether trade tensions are affecting American shopping habits. The data could influence Federal Reserve policy decisions in coming months.

Stocks ended Thursday’s session mixed after a two-day rally lost momentum. Concerns about inflation and rate cut timing weighed on investor sentiment going into Friday’s session.

Applied Materials reported earnings that included a downbeat forecast, spoking investors about semiconductor sector prospects. The company’s weak China guidance raised fresh questions about tariff-related business risks.

Stay Ahead of the Market with Benzinga Pro!

Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders: