CONCLUDED Stock Market News From Sept. 12, 2025: Dow Slips After Hitting Record High Last Updated: 14 hours ago Gold Set for Fourth Weekly Gain on Fed Easing Bets By Giulia Petroni, Dow Jones Newswires Gold prices are poised for a fourth straight weekly gain on expectations that the Federal Reserve will cut interest rates Wednesday. Futures rose 0.4% to $3,689.80 a troy ounce in early trade and are up 1% on the week. Markets are pricing in a 25-basis-points cut next week and potentially further easing by ye ...

Market Overview - Asian shares rose, influenced by Wall Street's record-setting performance, as mixed U.S. data increased expectations for a Federal Reserve interest rate cut to stimulate the economy [1][3] - Japan's Nikkei 225 reached an intra-day high, rising 0.9% to 44,781.09, with notable gains in semiconductor companies like Tokyo Electron and Sony Group [2] - The S&P 500 increased by 0.8%, marking an all-time high for the third consecutive day, while the Dow Jones Industrial Average surged 617 points (1.4%) and the Nasdaq composite rose 0.7% [4] Economic Indicators - A report indicated that U.S. inflation rose by 2.9% in August compared to the previous year, slightly up from July's 2.7% rate, which may influence the Fed's decision on interest rates [6] - The job market's performance is seen as a critical factor for the Fed, with a need for it to weaken enough to justify a rate cut without triggering a recession [5] Sector Performance - Stocks of companies likely to benefit from lower interest rates, such as real estate and homebuilders, experienced rallies on Wall Street [7] - In Asian markets, Hong Kong's Hang Seng index rose 1.5% due to reports of potential state bank support for local governments, while the Kospi in Seoul climbed 1.3% [2]

Market Overview - Equity benchmark indices Sensex and Nifty experienced gains in early trade, driven by a global market rally and increasing expectations of a US Federal Reserve interest rate cut next week [1][3] - The BSE Sensex rose by 287.93 points to reach 81,836.66, while the NSE Nifty increased by 84.25 points to 25,089.75 [1] Company Performance - Infosys saw a 1.50% increase after announcing its largest-ever share buyback program valued at ₹18,000 crore [1] - Other gainers included Tata Motors, Maruti, Mahindra & Mahindra, Axis Bank, and Larsen & Toubro, while Hindustan Unilever, HDFC Bank, State Bank of India, and Titan were among the laggards [2] Investment Sentiment - The global stock markets are showing resilience, bolstered by new records in the US market, with bullish sentiments driven by anticipated rate cuts from the Fed [3] - A significant rise in demand for consumer durables, particularly automobiles, is expected to dominate economic news post-September 22nd, providing positive sentiment to the market [3][4] Institutional Activity - Foreign institutional investors (FIIs) sold equities worth ₹3,472.37 crore, while domestic institutional investors (DIIs) purchased stocks worth ₹4,045.54 crore [4] Oil Market - The global oil benchmark Brent crude decreased by 0.87% to $65.79 per barrel [4]

Market Overview - Bitcoin has experienced a bullish trend, reaching a 19-day high, attributed to cooler inflation data ahead of the Federal Reserve's rate cut decision [1][2] - Bitcoin's price increased by 1.5% in the last 24 hours, trading at $115,680 after peaking above $116,300 [1] Economic Indicators - The U.S. Producer Price Index (PPI) unexpectedly fell by 0.1% in August, marking the first decline since April, driven by lower prices for unprocessed goods and easing service costs [2][3] - The market anticipates a high probability of a rate cut by the Federal Reserve, with a 92.7% chance of a 25 basis point cut according to CME's FedWatch tool [3] Future Outlook - Experts predict a significant surge in Bitcoin prices towards the end of the year as the Federal Reserve begins its rate-cutting cycle [4] - On-chain data indicates that selling pressure from profit-taking has diminished, leading to a bullish sentiment in the market [4] Altcoin Performance - While Bitcoin reached a 19-day high, key altcoins like Ethereum, XRP, and Solana have shown only single-digit gains, whereas Dogecoin and Hyperliquid have surged by 25% and 23% respectively in the past 24 hours [5]

Market Overview - GIFT Nifty indicates a positive start for Dalal Street, trading higher by 76.5 points, or 0.30%, at 25,182.50 [1][12] - Indian equity markets have shown positive momentum for the seventh consecutive day, driven by easing India-US trade relations and expectations of a US Federal Reserve rate cut [12] US Market Performance - Wall Street's main indexes reached record-high closes, supported by gains in Tesla and Micron Technology, alongside favorable inflation and jobless data that suggest a potential interest rate cut by the Federal Reserve [2][12] - The S&P 500 rose by 0.85%, Nasdaq increased by 0.72%, and Dow Jones climbed by 1.36% [5] Asian Market Trends - Asian shares experienced gains, joining a global equity rally following tame US inflation data and cooling job numbers, which bolster expectations for a Federal Reserve rate cut [3][12] Commodity Prices - Gold prices increased, marking a fourth consecutive weekly gain, driven by concerns over a weakening US labor market overshadowing inflation worries ahead of an anticipated Federal Reserve rate cut [7][12] - Oil prices declined due to concerns about softening US demand and oversupply, despite worries about supply disruptions from geopolitical conflicts [8][12] Foreign Investment Activity - Foreign portfolio investors (FPIs) net sold shares worth Rs 3,472 crore, while domestic institutional investors (DIIs) were net buyers at Rs 4,046 crore [10][12] - The position of FIIs in the futures market decreased from a net short of Rs 1.86 lakh crore to Rs 1.82 lakh crore [12] Currency Movement - The Indian rupee fell by 24 paise, closing at an all-time low of 88.35 against the US dollar, influenced by ongoing tariff issues between India and the US [11][12]

Core Viewpoint - The Central Reserve Bank of Peru has cut interest rates to the lowest level since 2022, reducing the benchmark rate to 4.25% from 4.5% due to an unexpected drop in inflation [1][2]. Economic Indicators - Consumer prices in Peru rose by only 1.11% in August year-over-year, marking one of the slowest inflation rates among major emerging markets and nearing the lower end of the central bank's target range [3]. - Strong economic activity was reported, with a 4.5% expansion in June compared to the previous year, which may limit the potential for further rate cuts [4]. Central Bank's Position - The central bank indicated that the current interest rate is close to its estimated neutral level and forecasts inflation to be near the center of its target range by the end of the year [2]. - The key rate in Peru is now aligned with the lower end of the range set by the US Federal Reserve, which may create caution regarding further reductions in rates due to potential capital outflows [3].

Core Viewpoint - US stocks exhibited mixed trading patterns as investors assessed the economy ahead of the Federal Reserve's upcoming interest rate decision [1] Group 1: Stock Market Performance - The Dow Jones Industrial Average fell by 0.4%, while the S&P 500 slipped below the flat line; in contrast, the Nasdaq Composite rose approximately 0.4% [2] - All three major indexes reached record highs on Thursday, with the Dow closing above 46,000 for the first time [2] Group 2: Economic Indicators - Recent jobs data indicated labor market weakness, with just over 20,000 jobs added last month and initial jobless claims reaching a near four-year high [3] - Inflation remains persistent, with consumer prices increasing last month, influenced by President Trump's tariffs [4] - The University of Michigan's consumer sentiment survey revealed a larger-than-expected decline in consumer sentiment for September, as concerns over tariffs grew [4] Group 3: Federal Reserve Expectations - Traders are anticipating a greater than 90% chance of a quarter-point interest rate cut during the Fed's September meeting, with around 75% expecting three cuts by year-end [5] - The lead-up to the Fed's meeting is expected to be quieter, with all major stock indexes on track for weekly gains exceeding 1% [5]

Core Viewpoint - US stocks exhibited mixed performance as investors assessed the economy ahead of the Federal Reserve's upcoming interest rate decision [1] Group 1: Stock Market Performance - The Dow Jones Industrial Average fell by 0.4%, while the S&P 500 slipped below the flat line, and the Nasdaq Composite rose approximately 0.3% [2] - All three major indexes reached record highs on Thursday, with the Dow closing above 46,000 for the first time [2] Group 2: Economic Indicators - Recent jobs data indicated labor market weakness, with just over 20,000 jobs added last month and weekly initial jobless claims reaching a near four-year high [3] - Inflation remains persistent, with consumer prices increasing last month, influenced by President Trump's tariffs [3] Group 3: Consumer Sentiment and Expectations - The University of Michigan's consumer sentiment survey revealed a larger-than-expected decline in consumer sentiment for September, with long-run inflation expectations rising to 3.9% [4] - Investors are optimistic that inflation is manageable enough for the Fed to implement a rate cut next week [4] Group 4: Federal Reserve Rate Cut Expectations - Traders are anticipating a greater than 90% chance of a quarter-point cut during the Fed's September meeting, with around 75% expecting three cuts by the end of the year [5] - The lead-up to the Fed's meeting is expected to be quieter, with major stock indexes on track for weekly gains exceeding 1% [5]

Economic Overview - JPMorgan Chase CEO Jamie Dimon expressed concerns about a weakening economy, indicating uncertainty about whether it is heading towards a recession [3] - The Bureau of Labor Statistics reported that the U.S. economy added 911,000 fewer jobs in the 12 months through March 2025 than previously estimated, marking the largest preliminary adjustment on record since 2000 [3][4] Consumer Spending Trends - Despite economic concerns, consumer spending remains consistent across all income levels, although lower-income consumers are depleting their balances compared to pre-pandemic levels [4] - There is a significant disparity between higher-income and lower-income consumers, which poses ongoing challenges for the economy [4] Inflation and Price Changes - Grocery prices increased by 0.6% from July to August, the largest monthly rise since August 2022, contributing to broader inflation concerns [5] - The Consumer Price Index rose by 2.9% over the 12 months ending in August, the most significant increase since January [5] Market Expectations - The market anticipates that the Federal Reserve will cut interest rates for the first time since January during its upcoming meeting [2] - Dimon suggested that while a rate cut is likely, it may not have a significant impact on the economy [3]

Core Viewpoint - The search for the next Federal Reserve chair is ongoing, led by Treasury Secretary Scott Bessent, who is meeting with various candidates and pushing for reforms within the Fed [1][2][4]. Candidate Selection - Bessent has met with former Fed officials Lawrence Lindsey, Kevin Warsh, and James Bullard, aiming to add one or two names to President Trump's shortlist [2][3]. - The broader group under consideration includes 11 economists, comprising former and current central bankers and market strategists [3]. Proposed Reforms - Bessent advocates for the Fed to organically reduce its $6 trillion bond portfolio, which includes Treasurys and mortgage-backed securities, without disrupting markets or the economy [4]. - He aims to lessen the Fed's economic footprint and has expressed concerns about the complexity of the Fed's current toolkit [4][6]. Current Fed Context - The Fed is under scrutiny from the White House, with calls for an interest rate cut, which has not occurred since December 2024 [5]. - Markets anticipate a quarter percentage point reduction in the upcoming Federal Open Market Committee meeting [5]. Leadership Changes - Chair Jerome Powell's term ends in May 2026, and he is expected to be replaced in his current role, although he could remain as a governor for two additional years [7]. - The Senate is set to vote on nominee Stephen Miran for a Board of Governors vacancy, while Trump has attempted to remove Governor Lisa Cook amid allegations of mortgage fraud, though legal challenges have stalled this effort [7].