Core Points - The Federal Reserve has initiated a rate reduction cycle, lowering the benchmark interest rate by 0.25 percentage points, with projections for two additional cuts by year-end, bringing the federal funds rate to a range of 3.5% to 3.75% [5][6] - The market's reaction to the rate cut was muted, with the S&P 500 index falling less than 0.1%, the Nasdaq Composite down 0.6%, and the Dow Jones Industrial Average rising 0.5% [3][4] - Fed Chair Jerome Powell highlighted the complexities of the current economic landscape, characterized by weakening job data and persistent inflation, indicating a challenging environment for monetary policy [6] Market Reactions - Stock futures showed positive movement ahead of the market open, with S&P 500 futures rising 0.8%, Nasdaq 100 contracts up 1.1%, and Dow Jones futures increasing by 0.7% [6] - The market had anticipated the rate cut, leading to minimal dramatic movements in stock prices upon the announcement [4] Economic Indicators - Initial jobless claims for the week of September 13 are expected to decrease to 240,000 from 263,000 in the previous week [7] - The Philadelphia Fed manufacturing survey is projected to rebound to 2% after a decline of 0.3% in August [7] - The Conference Board's Leading Economic Index has been declining, with a 2.7% drop from January to July 2025, and is expected to dip by 0.2% in the September reading [7]

CONCLUDED Stock Market News From Sept. 18, 2025: Dow, S&P 500, Nasdaq Hit New Highs Last Updated: Updated 10 hours ago Stock Futures Surge After Fed Signals Further Rate Cuts By Patrick O'Donnell Stocks looked set to open in the green Thursday after the Federal Reserve delivered the interest-rate cut the market has long desired. Fed Chair Jerome Powell also signaled further easing, which buoyed investors. Subscribe to Barron's Tools Customer Service Customer Center Cryptocurrencies Data Magazine Markets Sto ...

Group 1 - The Federal Reserve lowered its benchmark interest rate by 25 basis points and indicated two more reductions are expected this year due to pressure from the White House [1] - Following the interest rate cut, US Treasuries experienced their largest advance in over a week, with the yield on 10-year debt dropping to 4.05% and the two-year yield falling to 3.52% [2] - Market expectations suggest an 80% chance of another quarter-point cut next month and another in December, with a total of 120 basis points of easing priced in by the end of 2026 [5] Group 2 - Investors are optimistic about further monetary easing, with analysts predicting that inflation will prove temporary and expressing a preference for bonds [4] - Initial jobless claims are anticipated to decrease to 240,000, indicating potential improvements in the labor market [6] - Despite the rate cuts, some analysts caution that the reductions may not be as aggressive as anticipated, noting that only one FOMC member favored a larger cut [7]

Core Viewpoint - The Federal Reserve's recent interest rate cut of 25 basis points may create new opportunities in the bond, housing, and job markets, but the change is not significant enough to prompt major portfolio adjustments [2][4]. Interest Rate Impact - The effective federal funds rate is now between 4% and 4.25%, following the rate cut, which was influenced by weak job reports [2]. - Advisors suggest that the rate cut alone does not warrant significant changes to investment strategies, emphasizing the importance of long-term allocations over reacting to Fed moves [4][5]. Bond Market Insights - Lower interest rates typically enhance bond returns, but broader market forces also play a crucial role, indicating that reliance solely on Fed policy can be risky [5]. - Active management in core bond strategies is recommended to avoid being confined to a narrow market segment [5]. Housing Market Dynamics - The rate cut may lower mortgage costs, potentially encouraging millennials to consider home purchases, which have been delayed [6]. - Despite the potential for lower mortgage rates, affordability remains a significant concern, particularly in high-cost cities where renting has been more economical than buying [7].

Core Viewpoint - The U.S. Federal Reserve cut the federal funds rate by 25 basis points, marking its first interest rate cut of 2025, but this move did not significantly impact the cryptocurrency market, which had anticipated a deeper reduction [1][2][7]. Market Reaction - The Federal Open Market Committee's decision to lower rates to the lowest level this year had minimal effect on digital assets, as the market had already priced in these expectations [2][8]. - Bitcoin experienced a brief increase from $114,794 to $117,198 but ultimately closed lower within 24 hours [2]. - Ethereum followed a similar trend, rising from $4,429 to $4,586 before retreating, remaining approximately 8% below its all-time high of $4,923 [3]. Liquidation Events - The lack of sustained upward movement in the cryptocurrency market led to significant liquidations, with around $400 million in long and short positions being wiped out within 24 hours post-announcement, affecting over 110,000 traders [3][8]. Future Rate Cut Expectations - Fed Chair Jerome Powell indicated the possibility of at least two more rate cuts later in the year, contingent on economic conditions [4][8]. - Futures markets adjusted to reflect expectations of two to three additional cuts before the end of 2025 [4]. Political Pressure - President Donald Trump reiterated calls for more aggressive rate cuts, despite dissent from one of his appointees to the Fed, Stephen Miran, who favored a deeper cut [5]. Market Sentiment - Analysts noted that the muted response in digital assets suggests a "sell the news" environment, but long-term sentiment remains optimistic, with expectations of increased liquidity benefiting Bitcoin and altcoins [8].

Core Viewpoint - The central bank has reduced its interest rate to 4% and indicated that further easing will likely be necessary to stimulate economic growth, with expectations of one rate cut per year over the next three years [1] Group 1 - The central bank's current interest rate is set at 4% [1] - Policymakers anticipate the need for additional rate cuts to support economic growth [1] - A forecast of one rate cut per year is expected for the next three years [1]

Group 1 - The Federal Reserve cut interest rates by 25 basis points, which led to a rise in the dollar as investors reacted to the decision [1][2] - Fed Chair Jerome Powell characterized the rate cut as a risk-management measure, causing market uncertainty regarding the future easing cycle [2] - The Fed's dot plot indicates the possibility of two additional 25 basis point cuts in the remaining meetings of the year, along with further cuts anticipated next year [2]

The Bank of England (BOE) in the City of London, UK, on Monday, Dec. 16, 2024.LONDON — European stocks are expected to open higher on Thursday, as traders evaluate the U.S. Federal Reserve's rate cut on Wednesday.The U.K.'s FTSE index is seen opening 0.18% higher, Germany's DAX up 0.65% France's CAC 40 up 0.37% and Italy's FTSE MIB up 0.31%, according to data from IG.Global markets are assessing the Fed's decision to cut its benchmark overnight lending rate by 25 basis points on Wednesday.In an 11-to-1 vote ...

Market Overview - The Federal Reserve has decided to cut interest rates by 25 basis points, leading to uncertainty in global markets regarding the implications of this decision [1][3] - Australian shares have reacted negatively, with ASX 200 futures indicating a potential loss of -0.12% at the market open [2] - Wall Street also experienced declines, with the S&P 500 and Nasdaq dropping, while the Dow Jones saw a modest gain of +0.57% [2] Company News - Santos (ASX:STO) is under scrutiny after Abu Dhabi National Oil Co withdrew its $36 billion takeover offer, citing factors that diminished the target's value during due diligence [4] - Macquarie Group (ASX:MQG) is in the news for having proposed a merger with Carlyle Group earlier this year, although discussions have since stalled [5] - ANZ Group (ASX:ANZ) continues to face challenges, recently parting ways with several senior executives following a fine [5] Commodity and Forex Update - The Australian dollar is trading at 66.5 U.S. cents [6] - Iron Ore prices have decreased by -0.3%, currently at $105.85 per tonne [6] - Brent Crude is priced at $67.95 per barrel, while gold has retreated to $3,667 [6]

The U.S. Federal Reserve today implemented an interest rate cut of 25 basis points. The question remains: Just how aggressive will they be the rest of the year and beyond? ...