Wednesday Afternoon Coffee - Markets Update - 10 Sep 2025 - Markets Lifted by Softer U.S. PPI; Dollar Slips, Yields Ease; Gold Near Record, Oil Climbs

The Trade Academy Team
Sep 10
3 min read

Markets Update: Global equities advanced Wednesday, the dollar edged lower and U.S. Treasury yields fell to their lowest since April after a cooler-than-expected U.S. producer inflation print bolstered hopes for Federal Reserve rate cuts.

Global Markets Roundup: 10 Sep 2025

Geopolitical tensions—after Israel’s attack on Hamas leadership in Qatar and as Poland and NATO scrambled air defenses to shoot down drones following a Russian strike on western Ukraine—helped keep gold near record highs and pushed oil more than $1 higher.

Stocks Rise on Tamer Producer Prices

The U.S. Labor Department’s Bureau of Labor Statistics said the Producer Price Index (PPI) for final demand dipped 0.1% after a downwardly revised 0.7% jump in July. Economists polled by Reuters had expected a 0.3% gain after a previously reported 0.9% July surge. Services prices fell 0.2% while goods prices edged up 0.1% after increasing 0.6% in the prior month.

On Wall Street, the S&P 500 and Nasdaq set record highs after the data. At 02:38 p.m., the Dow Jones Industrial Average fell 219.89 points, or 0.48%, to 45,491.45, the S&P 500 rose 15.54 points, or 0.24%, to 6,528.15 and the Nasdaq Composite rose 4.36 points, or 0.02%, to 21,883.84.

MSCI’s gauge of global stocks (EURONEXT:IACWI) added 2.50 points, or 0.26%, to 964.20 after notching a record intraday high. Earlier, Europe’s STOXX 600 closed down 0.02%, while Poland’s blue-chip index on the GPW fell about 0.9%, lagging regional peers.

Rates Retreat as Cut Bets Firm

Traders see a 25-basis-point reduction by the Fed next Wednesday as a near certainty and assign roughly 10% odds to a half-point move, according to CME Group’s FedWatch Tool, with additional cuts priced for October and December. The final potential hurdle—a fresh read on consumer prices—arrives Thursday. Schleif cautioned that markets could lose some steam into the close as investors await the August CPI.

U.S. Treasury yields eased after the PPI and slipped further post-auction. The 10-year note fell 4.2 basis points to 4.032% from 4.074% late Tuesday; the 30-year yield declined 3.8 basis points to 4.6786%. The 2-year, which is sensitive to Fed expectations, dipped 1.3 basis points to 3.529% from 3.542%.

Policy and Politics

Investors concerned about the Fed’s independence took some comfort from a court ruling that temporarily blocked President Donald Trump from removing Federal Reserve Governor Lisa Cook, a case likely bound for the Supreme Court. Separately, Stephen Miran, a top White House economic advisor, cleared a U.S. Senate hurdle, advancing his nomination as a Federal Reserve governor.

Currencies and Crypto

The dollar weakened modestly after the PPI surprise. The dollar index DXY slipped 0.06% to 97.75. The euro EURUSD ticked up 0.03% to $1.1709, while the dollar eased 0.08% to 147.29 against the Japanese yen USDJPY. Bitcoin (BTCUSD) gained 1.85% to $113,558.32.

Commodities: Gold Near Records; Oil Up Over $1

Safe-haven demand and easier-policy hopes kept bullion supported. Spot gold rose 0.56% to $3,646.40 an ounce, while U.S. gold futures (GCc1) added 0.29% to $3,653.90.

Oil advanced after Israel’s Qatar strike and as the U.S. pushed for new sanctions on buyers of Russian crude, though oversupply worries capped gains. U.S. crude (CL1!) settled up 1.66%, or $1.04, at $63.67 a barrel; Brent (BRN1!) finished at $67.49, up 1.66%, or $1.10.

Grains Slip

On the Chicago Board of Trade, the most active soybean contract (ZS1!) settled down 6 cents at $10.25-1/4 a bushel. Corn (ZC1!) dropped 2-3/4 cents to $4.17, and wheat (ZW1!) finished down 5-1/4 cents at $5.15.

Outlook

With producer prices cooling and CPI due Thursday, markets are leaning into a September cut, with some wagers extending to October and December. Any upside surprise in consumer inflation—or an escalation in geopolitical risks—could quickly test the rally’s resilience.

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