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Stocks Shrug Off Inflation Concerns, Reach New Highs
14 Aug
Summary
- S&P 500 futures near flat despite record close
- Investors optimistic inflation will be transitory
- Small caps outperform, Russell 2000 climbs 3.6%
As of August 14, 2025, the stock market has continued its strong performance, with the S&P 500 index reaching a third consecutive record close. This comes despite some concerns earlier in the week over higher-than-expected producer prices in July.
Investors appear to have largely shrugged off the inflation data, with S&P 500 futures remaining near flat on Thursday night. According to Tom Lee, head of research at Fundstrat Global Advisors, "I don't think that one data point is enough to change a thesis around the trajectory of inflation. Our base case remains that this is going to ultimately be viewed as transitory by the market."
The Dow Jones Industrial Average has been the market leader this week, rising 1.7% week-to-date. The S&P 500 and Nasdaq Composite have each added around 1.2%. Notably, small-cap stocks have outperformed, with the Russell 2000 index climbing 3.6% over the same period.
Investors will be closely watching economic data on import prices, consumer sentiment, and retail sales on Friday for further insights into the state of the economy and the trajectory of inflation.
