CNBC Business News Update - Market Midday: Stocks Soaring, S&P 500 Index And Dow Hit New Record Highs, Fed Chair Hints An Interest Rate Cut Could Happen Next Month 8/22/25

Episode Date: August 22, 2025

From Wall Street to Main Street, the latest on the markets and what it means for your money. Updated regularly on weekdays, featuring CNBC expert analysis and sound from top business newsmakers. Anchored by CNBC's Jessica Ettinger.

I'm Jessica Eddinger, CNBC. The Fed chair hints an interest rate cut is possible next month. And stocks are soaring on Wall Street this afternoon. It's a record setting day. The Dow and the S&P 500 index each set record highs today. The Dow is up 919 points, 2% led higher by shares of Caterpillar Home Depot and Sherwin Williams all up about 4%. The S&P 500 index up 100 points, 1.5%. The NASDAQ is up 380 points. That's 1.8%. Envidia shares up 1.5% this afternoon. We got a very strong knot to September, and that is obviously a huge relief. Look, I'm not entirely surprised because it seemed like in recent communication,

some of the Fed was emphasizing labor market weakness. And the statement from FedCharp, how it was so strong is that we're seeing more weakness. We're also expecting more weakness, and it can develop quickly. As partners groups, Anastasia Omaroso, on CNBC. Here's a bit of what Fed Chair J Powell said that sending markets higher. With policy and restrictive territory, the baseline outlook and the shifting balance of risks

may warrant adjusting our policy stance. Monetary policy is not on a preset course. FOMC members will make these decisions based solely on their assessment of the data and its implications for the economic outlook and the balance of risks. We will never deviate from that approach. economics reporter Steve Leesman is in Jackson Hole now. And we had Patrick Harker, the former Philly Fed President, who really just left office in June. He talked about the fuzziness of the data. And I think that has led to the different interpretations of what the right outlook is among committee members. A couple of folks ready to cut right now, they were ready to cut in July.

And a bunch of folks who say we shouldn't cut it all in a very large middle of folks who say, I want to wait and see. You are seeing higher prices on lots for Toyotas, Hondas, and Nissan. But the automakers are pushing back on an Niki Asia news report saying those price increases for Japanese-made vehicles in the U.S. are the result of Trump tariffs. American consumers are facing a 15% tariff on those vehicles. Toyota tells CNBC the price increases or because of increases in general operational costs. Meantime, the new Jeep Cherokee has been unveiled.

parent company Stelantis has redesigned the vehicle it discontinued two years ago. Jeep sales have been slumping for years. So it has high hopes for this one, CNBC's Phil LeBoe, spoke with the CEO of Jeep. Bob Broda Durf, the CEO of Jeep, this goes on sale later this year. When you look at this, how important is it that you have a mid-size SUV back on sale again? Yeah, there's no question. This is the biggest segment in the United States. And this is obviously one of the largest misses from our sales.

decline. It is now going to help reinvigorate a positive direction for us going forward. When you look at this vehicle being built in Mexico, there's tariffs right now, and nobody's quite sure when there's going to be a new USMCA deal or when we'll finally get a deal with Mexico. How much does that impact your costs? Costs are certainly going to be impacted by tariffs. We talked about just being compliant. The entire power train is built in Dundee, Michigan. So we've worked through different parts and components. We've got a value equation where we still can price very aggressively for the customer. level models about $37,000. Jeep Cherokees will be on dealer lots toward the end of this year

and beginning of next year. Jessica Eddinger, CNBC. CNBC is the network for ambitious people.