Thursday Afternoon Coffee - Markets Update - 18 Sep 2025 - Wall Street Sets Fresh Records as Tech Leads; Dollar Rebounds, Oil Slips

The Trade Academy Team
Sep 18
3 min read

Markets Update: U.S. stocks climbed Thursday, with the Nasdaq, S&P 500, Dow, and Russell 2000 all notching record closing highs. Technology shares powered the advance as investors digested the Federal Reserve’s first rate cut of the year and guidance that further easing is possible, while the dollar rebounded and crude prices slipped.

Global Markets Roundup: 18 September 2025

Stocks Rise, Small Caps Surge Post-Fed Cut

The tech-heavy Nasdaq led gains as the S&P 500 also closed at a record, joined by the Dow Jones Industrial Average. The Russell 2000 rallied 2.5%, securing its first record close since November 2021 as lower borrowing costs buoyed rate-sensitive small caps.

Within the S&P 500’s 11 sectors, seven advanced. Technology rose 1.4%, with AI-chip bellwether Nvidia (NVDA) providing the biggest lift, followed by Intel (INTC), which jumped 22% after announcing a deal. The Philadelphia Semiconductor Index (SOX) outperformed with a 3.6% rise. Industrials (S5INDU) added 1.1%, while defensive Consumer Staples (S5CONS) lagged, falling 1% as Monster Beverage (MNST) and tobacco makers Philip Morris (PM) and Altria (MO) led declines.

Policy & Rates

The Fed cut rates by 25 bps on Wednesday, framing the move as a risk-management response to a weakening labor market and signaling no rush to accelerate easing. The U.S. 10-year Treasury yield rose to ~4.11%.

Currencies and Crypto: Dollar Snaps Back

The dollar initially plunged on the Fed decision but rebounded as data showed new U.S. jobless claims fell, reversing the prior week’s jump. The Dollar Index DXY recovered from a low of 96.224 to trade up 0.4% at 97.347 (earlier showing ~+0.35%). Sterling’s early gains after the Bank of England’s hold faded; GBPUSD fell 0.6% to $1.35515 (after briefly touching $1.3726), while EURUSD dipped 0.2% to $1.17893. Bitcoin rose ~1.6% earlier and was last up 1.9% at $117,837.

The BoE slowed the pace of quantitative tightening to £70 billion from £100 billion, with a 7–2 vote. In Norway, the Norges Bank cut rates 25 bps to 4.0%—its second reduction in three months—and signaled scope for further easing; the Norwegian crown weakened, with USDNOK up about 0.5% (earlier ~+0.66%). The dollar was 0.6% firmer versus the yen USDJPY at 147.88 ahead of Friday’s BOJ decision.

Commodities

Oil settled lower as growth worries tempered the typical boost from easier policy: WTI fell 0.7% to $63.57 a barrel and Brent slipped 0.8% to $67.44. Gold dipped 0.4% overall, and front-month futures settled down 1% at $3,643.70 a troy ounce, a second straight daily decline.

Agricultural Commodities

Wheat for December fell 0.6% to $5.25/bu. Corn for December eased 0.5% to $4.24½/bu. Soybeans for November slipped 0.5% to $10.39¼/bu. Arabica coffee edged up to just under $3.80 per pound after fund-driven selling earlier in the week.

Outlook

Fed easing set the stage for risk assets, with tech in command and small caps catching a tailwind. Still, softer oil, a firmer dollar, and mixed defensive sectors signal lingering growth concerns. Attention turns to the BOJ on Friday and to whether incoming data—and corporate updates—reinforce the case for gradual, not hurried, policy easing.

Looking forward refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.

General news - Information source from multiple newswires.

The article and the data is for general information use only, not advice!

The Trade Academy Team