Market Wrap | US Stocks Dip Ahead of Fed Rate Cut Anticipation

On September 16, 2025, the U.S. stock market experienced a slight decline, with the S&P 500 Index falling 0.13%, the Dow Jones Industrial Average dropping 0.27%, and the Nasdaq Composite Index decreasing 0.07%. This market movement comes as investors closely monitor Federal Reserve Chair Jerome Powell's stance on the labor market, which is expected to influence future monetary policy. The market is widely anticipating a 25 basis point rate cut at this week's Federal Reserve meeting, a move that has already been largely priced in by investors.

The market saw a mixed performance across various sectors. The utilities, technology, communication services, materials, industrials, real estate, and financial sectors underperformed the S&P 500. Conversely, the energy and consumer staples sectors bucked the trend and posted gains.

The Federal Reserve is expected to cut interest rates this week, with a 95.8% probability of a 25 basis point reduction, according to market predictions. Investors are closely watching Fed Chair Jerome Powell's stance on the job market, which may influence future policy directions. Meanwhile, Microsoft's President announced plans to invest over $30 billion in the UK over the next four years, as part of a broader $42.3 billion investment initiative involving US tech giants. Additionally, Eli Lilly plans a $5 billion investment in a new production facility in Virginia. The Nasdaq China Golden Dragon Index rose 1.76%, driven by gains in key Chinese stocks including Nio, Baidu, and Alibaba.