Wednesday Afternoon Coffee - Markets Update - 17 Sep 2025 - Stocks Indecisive as Fed Kicks Off Easing; Treasury Moves Mixed

The Trade Academy Team
8 hours ago
2 min read

Markets Update: World equities slipped in choppy trade and U.S. rates swung after the Federal Reserve delivered a widely anticipated quarter-point rate cut and signaled the start of a monetary-policy easing cycle. Only newly sworn-in Governor Stephen Miran dissented, favoring a 50-basis-point move.

Global Markets Roundup: 17 September 2025

Stocks Mixed After the Decision

U.S. benchmarks wobbled post-announcement. At one point after the Fed, the Dow Jones Industrial Average rose 0.56% to 46,014.88, while the S&P 500 fell 0.31% to 6,585.98 and the Nasdaq Composite dropped 0.75% to 22,162.03.

By the close, preliminary data showed the S&P 500 down 0.10% to 6,600.13, the Nasdaq off 0.33% to 22,260.85, and the Dow up 0.56% to 46,012.75.

Globally, MSCI’s ACWI (EURONEXT:IACWI) eased 0.14% to 975.41, pulling back from record highs.

Workday (WDAY) jumped after a report that activist investor Elliott Management amassed a stake exceeding $2 billion.

Rates and FX

U.S. Treasury yields moved around intraday. Earlier, the 10-year fell 1.5 bps to 4.009%, with the 2-year down 1.5 bps to 3.495%, aligning with the Fed’s path. Later, in broader market reaction, 10-year yields rose to 4.074%.

The U.S. dollar index DXY advanced 0.4% to 96.962, after initially hitting its lowest level since 2022 before rebounding to trade around 96.8. The euro EURUS hovered near $1.18, slightly below four-year highs earlier in the week.

What the Fed Said—and Why It Cut

The Fed lowered rates by 25 bps and indicated it will steadily reduce borrowing costs for the rest of this year, projecting two more quarter-point cuts in 2025. Chair Jerome Powell framed the move as a risk-management cut, emphasizing rising downside risks to employment relative to inflation, while noting inflation risks still require vigilance. The decision was widely priced in by investors, according to LSEG data.

Miran—who joined the Board on Tuesday and is on leave as head of the White House’s Council of Economic Advisers—was the sole dissent for a larger move. Powell also fielded questions on Fed independence; on Tuesday, Miran was sworn in and an appeals court rejected President Donald Trump’s attempt to remove Governor Lisa Cook.

Commodities

WTI settled down 0.7% at $64.05 a barrel; Brent fell 0.8% to $67.95.

Grains

On the CBOT Wednesday:

Wheat (Dec) fell 1% to $5.29/bu as Plains rainfall replenishes soil moisture.
Corn (Dec) fell **0.6% to $4.27¼/bu.
Soybeans (Nov) fell **0.6% to $10.44¼/bu.

Outlook

With the Fed inaugurating its easing cycle—and projecting two more cuts in 2025—markets will key off incoming labor and inflation data. The tug-of-war between sticky prices and softening employment leaves equities and bonds sensitive to every print, while the dollar’s rebound and shifting rate expectations keep cross-asset volatility elevated.

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