The Economic Times·2025-09-17 16:41Market Overview - The Dow Jones Industrial Average rose by 461.88 points, up 3.10 points (+0.67%), while the S&P 500 edged down 0.1% and the Nasdaq Composite slipped 0.5% by midday [1][29] - The market is pricing in a nearly 96% chance of a 25 basis point cut by the Federal Reserve, with analysts closely watching the updated dot plot for potential additional cuts before year-end [2][16] Sector Performance - Nvidia fell nearly 3% after China banned its AI chip sales to domestic tech giants, while Tesla and Uber also struggled [3] - Workday surged over 8% on activist investor support, indicating strong market interest in companies with robust backing [3] - Oracle dipped 2.7% despite strong AI cloud demand, highlighting the market's focus on corporate earnings and regulatory developments [4] Economic Indicators - Housing starts and building permits for August fell to 1.307 million and 1.312 million respectively, weaker than the expected 1.37 million, intensifying expectations of Fed rate cuts [5][29] - The labor market showed signs of slowdown, with August job growth adding only 22,000 jobs and unemployment rising to 4.3%, the highest since 2017 [18] Small-Cap Performance - Small-cap indexes gained modestly, reflecting improving investor optimism amid softer macroeconomic data and expectations of Federal Reserve rate cuts [7][21] - The Russell 2000 index of small caps rose 0.9%, indicating better performance relative to large caps [23][30] Sector-Specific Movements - Financials and banking sectors typically rally on rate cuts due to cheaper borrowing costs, although they experienced a small decline on this particular day [27] - The technology sector remains a top performer, buoyed by the AI boom and growth expectations, despite some volatility post-announcement [27] - Utilities have risen as bond yields fell in anticipation of the rate cut, reflecting their defensive appeal amid market uncertainties [27]