Market Wrap | US Stocks Surge as Fed Rate Cut Hopes Boost Market

On September 19, 2025, the U.S. stock market saw a positive performance with the S&P 500 Index rising by 0.49%, the Dow Jones Industrial Average increasing by 0.37%, and the Nasdaq Composite Index gaining 0.72%. This bullish trend is closely tied to recent macroeconomic news. San Francisco Fed President Mary Daly noted that the slowing U.S. job market is partially linked to the broader economic outlook, suggesting a cautious approach to monetary policy. Additionally, Peel Hunt forecasts that the Federal Reserve will further cut rates by 25 basis points in 2025, expecting the Federal Funds Rate to reach 3.00% by 2026. These insights into monetary policy and employment data are driving the current positive performance of U.S. stock indices.

In today's market, the utilities and technology sectors outperformed the S&P 500. Conversely, the healthcare, consumer staples, energy, materials, and real estate sectors moved in the opposite direction of the S&P 500.

Oracle and Meta are reportedly in talks for a $20 billion AI cloud computing deal, potentially impacting both companies' market positions and influencing investor sentiment. Boeing is expected to receive an order for 250 aircraft from Turkish Airlines, which could significantly boost Boeing's production and sales outlook. The Federal Reserve's Daly has noted that the slowing U.S. job market is partially related to economic prospects, potentially affecting market expectations around Fed policy. Additionally, OpenAI's consideration to invest $100 billion in server backup and their potential development of smart devices could influence tech sector dynamics.