On September 24, 2025, global stock markets declined, the U.S. dollar strengthened, and gold prices eased after Federal Reserve Chair Jerome Powell signaled caution on future U.S. interest rate cuts.
His comments followed a recent rate reduction, highlighting the balance between inflation and job market concerns.
Equities Decline
Wall Street saw a second day of losses after recent highs. The Dow Jones Industrial Average dropped 171.50 points (0.37%) to 46,121.28, the S&P 500 fell 18.95 points (0.28%) to 6,637.97, and the Nasdaq Composite slid 75.62 points (0.33%) to 22,497.86.
Globally, MSCI’s stock index fell 3.21 points (0.33%) to 978.95. Europe’s STOXX 600 dipped 0.19%, though defense stocks rose 1.5% after U.S. President Trump’s remarks on Ukraine.
Strong Housing Data
U.S. new home sales surged 20.5% in August to 800,000 units, exceeding forecasts of 650,000. This robust data, paired with Powell’s view on high asset valuations, raised doubts about imminent rate cuts.
Currency and Gold Movements
The U.S. dollar index climbed 0.66% to 97.87, gaining against the euro (down 0.66% to $1.1737), yen (up 0.83% to 148.85), and Swiss franc (up 0.54% to 0.795).
Gold prices fell 0.86% to $3,731.62 per ounce, and U.S. gold futures dropped 0.36% to $3,767.10.
Oil and Bonds
Oil prices hit a seven-week high, with U.S. crude up 2.49% to $64.99 per barrel and Brent up 2.48% to $69.31, driven by tight supplies.
U.S. Treasury yields rose, with 10-year notes at 4.147% and 2-year notes at 3.604%.
Looking Ahead
Investors await Friday’s Personal Consumption Expenditures report for inflation clues, as markets gauge the Fed’s next steps.
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