Daily Finance Pulse USA – 18 September 2025
US markets are open for trading on September 18, 2025. The Dow Jones surged 0.61% to a record close at 46,038.30 after the Federal Reserve cut rates for the first time since December 2024, while the S&P 500 and Nasdaq were virtually flat, reflecting sector rotation and caution around Fed guidance. Market sentiment is cautiously bullish as investors digest the Fed’s new easing cycle, a softening labor market, and sticky inflation. Tesla and Apple remain in focus, with Tesla recouping its annual losses on Elon Musk’s $1 billion buyback and Apple trading sideways after its iPhone 17 event. Housing data disappointed, oil gained, gold retreated, and Bitcoin held above $117,000. Global markets eye Fed fallout and US policy signals.
1/10
**Dow Hits Record High: Fed Cuts Rates by 25 bps, Signals Further Easing**
September 17, 2025 · The Federal Reserve cut its target federal funds rate by 25 basis points to 4.00–4.25%, its first reduction in 2025, citing a moderating economy, slowing job growth, and elevated inflation. The Dow Jones Industrial Average closed at 46,038.30, up 0.61% (280.40 points), while the S&P 500 and Nasdaq Composite ended little changed[56][67]. The Fed signaled openness to more cuts if risks to employment and growth intensify, but Chair Powell dismissed the likelihood of larger moves in the near term[71].
Impact: Expect continued equity support and bond market volatility as the Fed navigates between growth risks and inflation.
2/10
**S&P 500, Nasdaq Flat Amid Sector Rotation: Tech Lags, Industrials Lead**
September 17, 2025 · The S&P 500 closed virtually flat, while the Nasdaq Composite slipped modestly as investors rotated out of tech giants into industrials and defensives following the Fed’s dovish tilt. Nvidia and Oracle lagged, while Workday surged on activist interest[66]. The S&P 500 remains near all-time highs, buoyed by expectations of lower borrowing costs and robust corporate earnings outside the tech sector.
Impact: Sector rotation likely to persist as markets adjust to a lower-rate environment; tech valuations face pressure.
3/10
**Fed Prioritizes Jobs Over Inflation: August CPI 2.9%, Core 3.1%**
September 17, 2025 · The Fed’s rate cut came despite August CPI inflation accelerating to 2.9% year-over-year, with core inflation steady at 3.1%. Chair Powell emphasized that while inflation remains above target, slowing job growth and rising unemployment warranted preemptive easing[67][20]. The Fed’s updated dot plot suggests the possibility of two more cuts this year if economic data weakens further.
Impact: Fed is now more focused on employment than inflation, increasing the odds of further easing but also raising the stakes for future price stability.
4/10
**Labor Market Softens: August Payrolls +22K, BLS Revises Down Prior Gains**
September 17, 2025 · The labor market showed clear signs of cooling, with August nonfarm payrolls rising just 22,000 and the Bureau of Labor Statistics revising down cumulative job growth by nearly 1 million over the past year. The unemployment rate edged higher but remained below 4%, signaling a gradual slowdown rather than a sharp contraction[56][67].
Impact: Weaker job gains support the Fed’s dovish pivot but raise concerns about the sustainability of consumer spending.
5/10
**Tesla Surges Past Break-Even: Musk’s $1B Buyback Fuels Rally**
September 17, 2025 · Tesla erased its 2025 losses, rising 85% from its April low to close above $410 after CEO Elon Musk disclosed a $1 billion stock purchase—his first open-market buy since 2020. The move is seen as a strong vote of confidence amid softening EV demand and intensifying competition, particularly in China[63][70].
Impact: Tesla’s rebound highlights CEO influence and retail investor sentiment, but fundamental challenges remain in a crowded EV market.
6/10
**Apple Treads Water Post iPhone 17 Launch: Mixed Wall Street Reaction**
September 17, 2025 · Apple’s stock is down about 5% year-to-date, underperforming most megacap peers, as the iPhone 17 launch failed to excite investors. Analysts remain positive long-term but note that incremental upgrades and premium valuation demand stronger growth catalysts[62][53].
Impact: Apple’s near-term performance hinges on holiday sales and services growth, with investors seeking clearer signs of innovation.
7/10
**Housing Data Disappoints: Starts, Permits Fall Short in August**
September 17, 2025 · Housing starts and building permits for August came in at 1.307 million and 1.312 million, respectively—below expectations and the lowest since early 2024. Rising inventories and higher mortgage rates continue to weigh on the sector, adding to recession concerns[66].
Impact: Weak housing data underscores the Fed’s growth concerns and reinforces the case for further monetary support.
8/10
**Oil Rises on Fed Easing, Geopolitical Tensions: WTI Above $65**
September 17, 2025 · Crude oil prices climbed as the weaker dollar and expectations for easier global monetary policy offset demand concerns. WTI crude closed above $65, Brent above $68, with geopolitical tensions in the Middle East and Russia adding upward pressure.
Impact: Higher oil prices could complicate the Fed’s inflation outlook if sustained, but for now, easing expectations dominate.
9/10
**Gold Eases from Record Highs as Risk Appetite Returns**
September 17, 2025 · Gold prices retreated from recent all-time highs as equities rallied post-Fed, but the metal remains well supported by a weaker dollar and lingering inflation concerns. Spot gold closed near $3,650/oz, down 1% on the day but up 15% year-to-date.
Impact: Gold’s rally may pause but is unlikely to reverse as long as real rates stay negative and geopolitical risks persist.
10/10
**Bitcoin Holds Above $117K as Crypto Benefits from Fed Dovishness**
September 17, 2025 · Bitcoin held above $117,000, buoyed by the Fed’s rate cut and expectations for further easing. The crypto market cap stands above $4.1 trillion, with digital assets increasingly seen as a hedge against currency debasement and inflation.
Impact: Cryptocurrencies remain a high-beta play on global liquidity and investor risk appetite.