Evening Market Recap

Sophia Reyes · September 17, 2025 7:41 PM

Market Snapshot for Wednesday September 17^th, 2025

S&P 500 – 6,600.35 (-0.097%)

Dow Jones – 46,018.32 (+0.57%)

NASDAQ – 22,261.33 (-0.33%)

Market Performance

US Stocks End Mixed After Federal Reserve Cuts Interest Rates for First Time in 2025

U.S. equities finished mixed on Wednesday following the Federal Reserve’s first interest rate cut of the year. Federal Reserve officials approved a 25-basis-point reduction, a move widely expected by investors after the central bank concluded its two-day policy meeting.

The Dow Jones Industrial Average (^DJI) gained 0.5%, marking a modest rally, while the S&P 500 (^GSPC) slipped 0.1% and the Nasdaq Composite (^IXIC), weighed down by technology stocks, fell 0.3%. The market’s mixed response reflects investor optimism about lower borrowing costs tempered by ongoing concerns about inflation and the labor market.

Fed Chair Jerome Powell described the rate cut as a “risk management” decision during a post-meeting press conference. He noted that the labor market has shown signs of weakening amid persistently elevated inflation, prompting the central bank to ease policy cautiously rather than aggressively. Powell emphasized that the move is intended to balance the dual goals of supporting growth while keeping inflation in check.

Economic Takeaways –

• Freight shipments fell at an accelerated pace in August, according to a monthly update from Cass Information Systems. The company’s multimodal transportation index recorded a 9.3% year-over-year decline in shipments, the largest y/y drop since October 2023. Volumes slid 1.5% from July.
• In addition to the rate cut, Fed policy makers also signaled two more rate cuts this year.
• Bond yields are slipping, with the 10-year U.S. Treasury yield at 4.02%.
• The U.S. dollar is strengthening against major currencies.
• In trading yesterday, most S&P 500 sectors clustered around unchanged, with five of 11 higher, led by energy and consumer discretionary after a strong retail sales report.
• From a technical perspective, with the market near record highs, clear resistance levels are harder to define. Still, the S&P 500 may encounter resistance near 6,650, with potential for a break below 6,500 if the Federal Reserve adopts a hawkish tone.
• August housing starts dropped 8.5% month over month to a seasonally adjusted annual rate of 1.307 million units, missing the Briefing.com consensus of 1.375 million. Building permits also fell 3.7% to 1.312 million, below expectations of 1.37 million.
• The S&P 500 continues to trade at a historically elevated valuation near 23 times projected 12-month forward earnings. While such multiples are not reliable for short-term market timing, they tend to be more informative for gauging long-term return potential.
• Volatility remains subdued with the Cboe Volatility Index (VIX) below 16, but the VIX curve is historically steep—indicating that short-term options pricing is depressed compared with longer-dated contracts.

Gold –

• Gold prices fell nearly 1% on Wednesday, retreating from a record high scaled earlier in the session, as market participants parsed remarks from Federal Reserve Chair Jerome Powell.
• Spot gold was down 0.9% at $3,658.25 per ounce, as of 3:11 pm EDT (1911 GMT), after hitting a record high of $3,707.40. Prices have risen nearly 6% so far this month.
• U.S. gold futures for December delivery settled 0.2% lower at $3,717.8.

Oil –

• Oil prices eased on Wednesday after data showing an increase in U.S. diesel stockpiles stoked worries about demand and the U.S. Federal Reserve cut interest rates as expected.
• Brent crude futures settled 52 cents, or 0.76%, lower to $68.22 a barrel while U.S. West Texas Intermediate crude futures lost 47 cents, or 0.73%, at $64.05.

Crypto –

• Bitcoin slips below $115K after Fed implements quarter-point interest rate cut.
• Metaplanet, Japan’s largest corporate Bitcoin holder, has completed a massive $1.4 billion fundraising round and launched new subsidiaries in Miami and Tokyo. The Tokyo-listed company more than doubled its initial fundraising target, attracting major institutional investors including sovereign wealth funds.

Powell: ‘There are no risk-free paths now’

Federal Reserve Chair Jerome Powell underscored the central bank’s challenging task of navigating its dual mandate of price stability and maximum employment.

The Fed’s recent decision to lower interest rates by 25 basis points comes amid signs of a cooling labor market, even as inflation remains stubbornly high.

“There are no risk-free paths now,” Powell said, highlighting the wide range of forecasts among Fed policymakers and the uncertainty facing the economy.

At the press conference following the announcement, Powell described the rate cut as “a risk management cut,” emphasizing the cautious approach the Fed is taking to balance economic growth and inflation pressures.

Powell emphasized that the central bank’s recent 25-basis-point rate cut is intended as a “risk management” measure in response to a weakening labor market.

“Yeah, I think you could think of this in a way as a risk-management cut,” Powell told reporters during his post-decision press conference.

While the Fed’s latest Summary of Economic Projections (SEP) still reflects modestly stronger growth for this year and next, with inflation and unemployment largely unchanged, Powell highlighted that the labor market outlook has shifted significantly. “We were looking at 150,000 jobs a month at the time of the last meeting,” he explained. “And now we see the revisions and we see the new numbers, and I don’t want to put too much emphasis on payroll job creation, but it’s just one of the things that suggests that the labor market is really cooling off.”

That trend, Powell said, informed the timing of the Fed’s decision: “That tells you it’s time to take that into account in our policy.”

Powell also acknowledged mounting pressures on specific segments of the workforce. Speaking Friday, he cited particular challenges for young workers, recent graduates, and minority groups, whom he described as being “on the margin” and struggling to find employment. “The overall job-finding rate is very, very low,” he said. “However, the layoff rate is also very low. So you’ve got a low firing, low hiring environment. And the concern is that if you start to see layoffs … there won’t be a lot of hiring going on.”

These concerns are supported by recent labor data. The unemployment rate for Americans aged 16 to 24 climbed above 10% in August for the first time since the pandemic. Recent college graduates also face a challenging job market, with their unemployment rate now exceeding that of the broader workforce for the first time in over a decade, according to analysis from the Bank of America Institute using BLS and Census Bureau data compiled by the New York Fed.

Powell noted that in a healthier economy, displaced workers would quickly find new opportunities, but today’s weak hiring environment increases the risk that unemployment could rise more sharply. “That’s been a growing concern over the last few months,” he said.

Inflation concerns remain a topic of discussion as well. When asked whether the Fed’s 2% inflation target is achievable, Powell cautioned that “No one really knows where the economy will be in three years.” He reiterated that the Fed expects tariff impacts to cause a one-time price jump but does not anticipate persistent inflation, particularly in the context of a softening labor market.

Looking ahead, the Fed’s latest “dot plot,” which illustrates policymakers’ interest rate expectations, signals two additional rate cuts in 2025 following Wednesday’s quarter-point reduction. This path would lower the benchmark rate to a range of 3.50% to 3.75% by the end of the year. The move on Wednesday marked the Fed’s first cut of 2025, bringing the target range to 4.00%–4.25%.

Alongside the policy decision, the Fed released updated economic forecasts in its SEP, showing slightly higher growth projections for the end of the year while keeping inflation and unemployment forecasts largely unchanged. However, the central bank noted that downside risks to employment have increased, reflecting the challenges Powell highlighted in the labor market.

Top Gainers

Several stocks experienced significant gains. Some of the top gainers included:

BGM Group Ltd. (BGM) +27.16%

QMMM Holdings (QMMM) +20.05%

D-Wave Quantum, Inc. (QBTS) +18.76%

Opendoor Technologies (OPEN) +14.46%

Lyft, Inc. (LYFT) +13.13%

Top Losers

The top US stock losers today, based on percentage change included:

Trex Company, Inc. (TREX) -7.63%

Manchester United (MANU) -6.28%

Arrow Electronics (ARW) -6.24%

Saia, Inc. (SAIA) -6.22%

Next Technology (NXTT) -6.16%

Notables

• Oracle (ORCL) gained after The Wall Street Journal reported the company is expected to be among the firms taking control of social media platform TikTok under a developing deal with China.
• General Mills (GIS) slipped despite beating Wall Street’s earnings-per-share consensus and delivering revenue in line with expectations. The packaged food giant also reaffirmed its fiscal 2026 outlook.
• Nvidia (NVDA) fell following a Financial Times report that China’s government has advised domestic tech firms to stop purchasing Nvidia products. The warning comes after Beijing accused the chipmaker of violating its anti-monopoly law.
• Alibaba (BABA) extended a rally of more than 30% over the past month as investors welcomed the company’s renewed focus on AI and the larger role of founder Jack Ma.
• Netflix (NFLX) went higher after Loop Capital upgraded the stock to Buy from Hold. The firm cited strong fundamentals, third-quarter engagement, a robust fourth-quarter content slate and higher long-term margin assumptions.
• Workday (WDAY) surged after Barron’s reported that activist investor Elliott Investment Management disclosed a $2 billion stake in the enterprise software firm.
• Eli Lilly (LLY) edged down as Berenberg downgraded the stock to Hold from Buy, saying the obesity drug market upgrade cycle has plateaued.
• Tesla (TSLA) dipped marking its first pullback in weeks after a sharp rally that was buoyed by CEO Elon Musk’s recent share purchase.
• Warner Bros. Discovery (WBD) plunged after TD Cowen downgraded the stock to Hold from Buy, citing downside risk if the proposed acquisition by Paramount Skydance (PSKY) does not go through, according to Briefing.com.
• The Financial Times reported that China has directed its largest technology firms, including Alibaba, to stop purchasing Nvidia’s (NVDA) AI chips specifically designed for the Chinese market—effectively halting tens of thousands of orders. Nvidia shares fell more than 2% on the news.
• General Mills (GIS) posted quarterly sales ahead of Wall Street forecasts, but the stock slipped as the Cheerios maker cautioned about a tougher consumer environment.
• Reddit shares recovered part of their earlier losses on Wednesday after Bloomberg reported the social media company is negotiating its next content-sharing deal with Google. The stock, which had fallen as much as 6.5% earlier in the session, was down a more modest 3% by afternoon trading following the report.
• Opendoor’s (OPEN) has seen a gain of nearly 225% over the past month.
• Hims & Hers Health (HIMS) stock continued to fall.

What to Watch Ahead

Expected earnings from FedEx (FDX), Lennar (LEN), and Darden (DRI) are on deck for Thursday.

On Friday the Bank of Japan rate decision is anticipated.