CONCLUDED Stock Market News From Sept. 17, 2025: Dow Gains After Fed Decision Last Updated: Updated 4 hours ago Stocks Edge Higher After Fed Votes for Rate Cut By Network Connor Smith Stocks perked up after the Federal Reserve said it would cut interest rates by a quarter point for the first time since December. The Dow Jones Industrial Average rose 400 points, or 0.9%. The S&P 500 was up 0.1. The Nasdaq Composite was still down 0.2%. Heading into the 2 p.m. ET decision, the Dow was up while the S&P and Nas ...

Kevin Dietsch / Getty Images The federal funds rate influences a number of borrowing costs. Key Takeaways The Federal Reserve's policy committee voted to reduce the central bank's key interest rate by a quarter of a percentage point to a range of 4% to 4.25%, the lowest since December 2022. Fed officials have grown more worried that tariffs will spark a wave of unemployment than that they will fuel inflation, at least for the time being. The vote was divided, reflecting the Fed's dilemma: lower inter ...

Core Insights - The stock market is reacting positively following the Federal Reserve's decision, indicating a potential shift towards lower interest rates [1]. Group 1: Federal Reserve and Interest Rates - The 2-year yield has decreased by 0.246 percentage points since Fed Chair Jerome Powell's speech at the Jackson Hole Economic Symposium, signaling market readiness for interest rate cuts [2]. - Currently, the 2-year yield stands at 3.55%, with expectations that it may decline further after the Fed's decision, as it has been trending below the key support line of approximately 3.6% [3].

When the Fed cut rates with stocks within 2% of record highs, the S&P 500 finished the next 12 months higher every single time.20 out of 20 (100% win rate) 🚨📈CC: @RyanDetrick https://t.co/o9vw7KdprC ...

On Sep. 17, the Federal Reserve announced its much-awaited decision on interest rates. As expected, the central bank has decided to cut rates by 25 basis points. Though Bitcoin, Ethereum, and XRP rose following the announcement, all these cryptocurrencies soon made a retreat on the charts. Nonetheless, traders on the popular crypto-based prediction market, Polymarket, nailed the Fed's latest announcement. Related: What is tokenization? Explained Users on Polymarket had predicted that there is a 91% chan ...

Core Viewpoint - The Federal Reserve has cut its benchmark interest rate by 25 basis points, marking the first downward adjustment in nearly a year, which was anticipated by financial markets and industry groups [1][2]. Group 1: Rate Cut Expectations - Financial markets had anticipated a 25 basis point cut, although some investors were hoping for a larger reduction [2]. - Industry experts, including Jay Lybik and Pete O'Neil, expected a 25 basis point cut due to concerns about inflation, particularly with an inflation reading of 2.9% for August [3]. Group 2: Impact on Economic Growth - The 25 basis point cut provides the Federal Reserve with flexibility for future adjustments if further cuts are necessary to stimulate economic growth, reflecting a cautious approach to monetary policy [4]. - Observers expect the reduction in borrowing costs to have a limited impact on transactions and new development in the near term [4]. Group 3: Multifamily Market Insights - The anticipated impact of the rate cut on multifamily transaction volume and development is expected to be minimal, as weak or negative rent growth remains a significant concern for investors [5]. - The relationship between Fed rate reductions and the cost of capital is complex, as most multifamily loans are priced off the 10-year Treasury, which may not always decrease in response to Fed cuts [5]. - Historical context shows that during the last rate cuts in late 2024, the 10-year Treasury actually rose due to concerns about rising U.S. debt levels, which offset some benefits of lower short-term rates [6].

Group 1 - Current homeowners are benefiting from the anticipated Fed rate cut, leading to a 58% increase in refinance applications in the last week and a 70% increase compared to the same week last year [1][8] - There is a notable rise in demand for adjustable-rate mortgages (ARMs), with the share of refinancing activity tied to ARMs reaching 12.9%, the highest since 2008 [2] - The surge in refinancing demand is driven by a significant drop in home borrowing costs, with the 10-year US Treasury yield decreasing to around 4.02% from a peak of 4.8% in early 2025, influencing mortgage rates [3] Group 2 - The 30-year fixed mortgage rate fell by 15 basis points to approximately 6.35%, marking the largest weekly drop in a year, while the 5/1-year adjustable mortgage rate decreased to 5.7% [4] - Overall mortgage activity is increasing, with total applications up 9.2% in the week ending September 5, indicating strong borrower demand since 2022 [8] - The rising activity suggests a positive outlook for the US housing market, which has been stagnant due to high borrowing costs, with expectations of mortgage rates dropping to around 6.25% by year-end as the Fed resumes its easing cycle [9]

Group 1 - Kevin Simpson, founder and CIO of Capital Wealth Planning, is purchasing Home Depot (NYSE:HD) due to expectations of a rate cut and anticipates a new cycle of home renovation in the US [1][2] - The retail consumer has been waiting for significant upgrades in home appliances and coverings since the pandemic, and there is also potential for renovations in multifamily homes and commercial properties as rates decrease [2] - The London Company Large Cap Strategy has exited its position in Home Depot, citing a high valuation of 18.6x trailing EBITDA and a mixed outlook for consumer spending and housing activity, while maintaining exposure through Lowe's [3]

Core Insights - The interest rate on the most popular U.S. home loan has dropped to its lowest level in a year, prompting homeowners to seek cheaper borrowing costs as job growth slows and expectations for a Federal Reserve interest-rate cut increase [1][2] - The Mortgage Bankers Association reported a significant rise in mortgage applications, particularly for refinancing, indicating a strong response to the lower rates [2] Group 1: Interest Rate Trends - The contract rate on a 30-year fixed-rate mortgage decreased by 10 basis points to 6.39%, the lowest since early October 2024, and down nearly 0.75 percentage points since mid-January [1][2] - The MBA's weekly applications index rose by 29.7% to 386.1, the highest level since April 2022, with 60% of applications for refinancing [2] Group 2: Labor Market and Economic Indicators - High borrowing costs and elevated property prices have negatively impacted the labor market, with the Federal Reserve maintaining steady short-term borrowing costs due to concerns over inflation from tariffs [3] - Recent labor market data indicates a sharp slowdown in job growth and a slight increase in the unemployment rate, leading to a decrease in yields on 10-year Treasury notes, which in turn has influenced home loan rates [4] Group 3: Federal Reserve Policy Outlook - Federal Reserve policymakers are signaling readiness to ease monetary policy, with expectations for a quarter-point interest-rate cut at the upcoming meeting [5] - Concerns about inflation remaining above the Fed's 2% target may lead to cautious rate cuts, despite pressure from President Trump for more aggressive reductions to stimulate the housing market [6]

Interest Rate & Currency - Bank Indonesia's surprise interest rate cut may put pressure on the rupiah [1] - A likely weaker dollar may limit further downside of the rupiah [1] Analyst Perspective - Analysts believe a weaker dollar may limit further downside of the rupiah despite the interest rate cut [1]