Market Wrap | US Stocks Slide as Fed Signals Rate Cut Amid Economic Concerns

On September 24, 2025, U.S. stock markets experienced a decline, with the S&P 500 Index falling 0.28%, the Dow Jones Industrial Average dropping 0.37%, and the Nasdaq Composite Index decreasing 0.34%. Federal Reserve officials have emphasized caution in monetary policy, with Daly indicating that the economic risk landscape has shifted, necessitating action. Additionally, CME's "FedWatch" suggests a 93% probability of a 25 basis point rate cut in October. These developments highlight concerns about potential economic slowdown, contributing to the negative sentiment in U.S. stock markets today.

Based on the current market performance, several key sectors underperformed the S&P 500 index. These include the technology sector, healthcare sector, communication services sector, materials sector, industrial sector, and real estate sector. Conversely, the utilities sector, energy sector, and consumer staples sector demonstrated resilience and posted gains despite the broader market downturn.

Federal Reserve officials have been vocal about the potential shifts in monetary policy. Daly indicated a change in economic risks, suggesting it's time for action, while Goolsbee warned against consecutive rate cuts. Meanwhile, the CME "Fed Watch" tool shows a 93% probability of a 25 basis point rate cut by the Fed in October. In the tech sector, Alibaba's U.S. shares surged, contributing to a 3.76% rise in the Nasdaq Golden Dragon China Index, driven by renewed interest from high-profile investors like Cathie Wood, who has reinitiated positions in the company. Additionally, AMD announced expanded global AI collaborations with Cohere, integrating AI platforms into its enterprise product offerings.