Pre-Market | Market Drops as Powell Warns of Inflation and High Stock Valuations

25 Sep., DOW FUTURES down 0.14% in pre-market, NASDAQ FUTURES down 0.58% in pre-market, S&P FUTURES down 0.43% in pre-market. The market sentiment is negative, driven by Federal Reserve Chair Powell's warning of elevated inflation and labor challenges, as well as his comments on stock valuations being "quite high" without confirming rate cuts. Additionally, U.S. new home sales surged 20.5% in August to 800,000 units annually, exceeding forecasts but easing safe-haven demand for gold.

In pre-market trading, BHP Group shares rose 4.22%, influenced by external market factors such as a mudslide. IBM shares climbed 3.45% as the company's partnership with HSBC on quantum computing enhanced bond trading forecasts. Novo Nordisk shares dropped 3.00% following a disappointing earnings release and a cut in guidance. Oracle shares fell 2.82% after the company announced plans for a significant bond sale to raise funds.

In pre-market trading, PepGen surged over 171%, driven by unprecedented splicing correction results in patients with myotonic disorders. Plus Therapeutics rose nearly 50%, boosted by an 88.89% positive earnings surprise. SeaStar Medical dropped over 42%, while Cemtrex fell nearly 27% following the announcement of an adjustable warrants exercise price reduction and potential stock dilution.

Ray Dalio warned that excessive interest rate cuts could diminish currency attractiveness and harm bondholders, advising individuals to hedge risks with a 10-15% gold allocation in portfolios. China's commerce ministry stated that U.S. unilateral restrictions remain the key obstacle to normal Sino-U.S. economic cooperation, impacting ongoing negotiations on Boeing aircraft purchases. U.S. new home sales surged in August to an annualized 800,000 units, lowering inventories and easing economic worries; Federal Reserve Chair Powell commented on high stock valuations and offered no clear rate cut signal, contributing to market declines and gold price adjustments amid shifting investor sentiment.