The Mid-Day Buzz

Sophia Reyes · September 19, 2025 1:08 PM

September 19^th, 2025

Stocks End the Week Higher on Fed Optimism

U.S. stocks edged higher Friday following a call between President Trump and China’s Xi Jinping, as investors weighed the outlook for trade between the world’s two largest economies.

The Dow Jones Industrial Average (^DJI) hovered just above the flatline, while the S&P 500 (^GSPC) added 0.15%. The tech-heavy Nasdaq Composite (^IXIC) rose 0.4%. The gains follow fresh all-time highs in the previous session, extending the indexes’ record-setting run.

With no major economic data out today, equity trading is subdued, but the upbeat mood from earlier in the week remains intact following the Federal Reserve’s first rate cut in nine months. Consumer discretionary names are leading gains, while energy shares lag as oil prices slide for a third straight session.

Economic Takeaways:

• In bonds and currencies, yields and the U.S. dollar are rebounding, retracing part of this month’s earlier losses.
• The 10-year Treasury yield rose two basis points to nearly 4.13% after briefly dipping below 4% post–rate cut.
• The Fed cut its benchmark rate by a quarter point to 4.0–4.25%, in line with expectations. Projections signal two more possible cuts before year-end, though officials stress the path will depend on incoming data, especially labor-market trends. Overall, the direction for rates looks lower as policymakers aim to normalize policy gradually.
• The Fed is more conservative than the market with its projections for a target rate of 3.4% by the end of 2026. Futures trading pegs rates between 2.75% and 3.25% by then, per the CME FedWatch Tool.
• Cyclical and smaller companies, which are more sensitive to borrowing costs, stand to benefit: the Russell 2000 outperformed both the Nasdaq and the S&P 500 this week, reaching a four-year high.
• The PHLX Housing index has jumped more than 16% so far this quarter, against a roughly 7% gain for the S&P 500, although the housing gauge still trails the benchmark stock market index on a year-to-date basis.

Trump, Xi Call Signals TikTok Deal and Upcoming Summits

President Trump and China’s President Xi spoke Friday, agreeing to meet in person at the APEC summit in South Korea Oct. 30–Nov. 1 and again in China early next year, with Xi also expected to visit the U.S. later.

Trump said he “appreciates” TikTok’s “approval,” touting progress on a U.S.-led spinoff of the app. Chinese readouts were vaguer, calling only for a “commercial solution” and clearer rules for Chinese investment.

Trade and other issues were also discussed. Trump highlighted progress, while China urged the U.S. to avoid new restrictions. Trump added that the two leaders talked about illegal drugs and ending the war in Ukraine.

Reports say Oracle, Andreessen Horowitz and Silver Lake may lead the TikTok deal. Trump also hinted at extending a partial tariff truce; current duties stand at 30% on Chinese imports and 10% on U.S. goods, with a 90-day pause expiring in November.

Trump Says TikTok Deal Approved

After a call Friday with Chinese President Xi Jinping, President Trump posted on Truth Social that “progress” had been made on trade, fentanyl, ending the war in Ukraine, and “the approval of the TikTok deal.”

Trump called the discussion “a very good one,” saying the two leaders will speak again by phone and “both look forward to meeting at APEC.”

Details of the TikTok agreement remain unclear. The Wall Street Journal reported Tuesday that a consortium including Oracle (ORCL), Silver Lake, and Andreessen Horowitz would take an 80% stake. Existing U.S. users would reportedly shift to a new app TikTok is testing, with Oracle hosting the data on its Texas servers.

On the Move

• FedEx is up 3.5% after posting stronger-than-expected earnings, even as it warned of a potential $1 billion hit from trade-related volatility this year.
• Tesla (TSLA) slipped 2% in what appeared to be a “sell-the-news” reaction after a strong two-week rally ahead of the Fed meeting and rate cut. Reports that the company will need to redesign door handles following safety concerns may also have pressured shares.
• Apple (AAPL) edged up 1.2% in early trading after launching the iPhone 17 internationally. Bloomberg reported strong initial demand for the new model in Asia.
• Lennar (LEN) dropped nearly 3% after posting quarterly revenue and gross margins below analysts’ expectations. The homebuilder continues to rely on buyer incentives to maintain sales, according to Barron’s. Rivals D.R. Horton (DHI) and KB Home (KBH) also fell in sympathy; KB Home reports next week.
• Micron (MU) declined 3.5% in early trade after hitting a record high yesterday. The stock has risen for 12 consecutive sessions, and today’s pullback may reflect profit-taking ahead of next Tuesday’s earnings release, Barron’s
• Bitcoin (/BTC) slipped 1.2% this morning. The cryptocurrency has struggled to gain traction since the Fed’s rate cut despite rallying in the lead-up to the meeting.
• NANO Nuclear Energy (NNE) shares surged nearly 15% Friday, continuing their recent rally after the company announced a proposed $6.2 million sale of its ODIN microreactor design to UK-based Cambridge Atom Works.
• Oracle (ORCL) rose 1.6% in early trading Friday amid expectations that a call between U.S. President Trump and China’s President Xi Jinping would finalize a TikTok deal potentially involving the software giant. The move lifted the stock’s gain to 3% over the past five sessions and 28% for the month.
• Citi (C) analyst Christopher Danely downgraded Intel (INTC) shares to Sell from Hold on Friday, following a rally in the stock.

What’s Ahead

Looking ahead, next week’s focus turns to the Fed’s preferred inflation measure—the core PCE price index—which could shed more light on the path of monetary policy.