The S&P 500 Index ($SPX) (SPY) today is up -0.17%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.77%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.80%.
In a move that was largely anticipated by Wall Street, the Federal Reserve approved a quarter-percentage-point rate cut on Wednesday. The Fed indicated that two additional rate cuts would be implemented before the year's end, as concerns over the U.S. labor market grew.
Weakness in chipmakers is weighing on the broader market, with Nvidia down more than -2% after the Financial Times reported that the Cyberspace Administration of China, China’s internet watchdog, has instructed the country’s biggest companies to terminate orders for Nvidia’s RTX Pro 6000D chip.
Today’s US housing news was weaker than expected and negative for stocks. Aug housing starts fell -8.5% m/m to 1.307 million, weaker than expectations of 1.365 million. Aug building permits, a proxy for future construction, unexpectedly fell -3.7% m/m to a 5.25-year low of 1.312 million, weaker than expectations of an increase to 1.370 million.
US MBA mortgage applications rose +29.7% in the week ended September 12, with the purchase mortgage sub-index up +2.9% and the refinancing mortgage sub-index up +57.7%. The average 20-year fixed rate mortgage fell -10 bp to an 11-month low of 6.39% from 6.49% in the prior week.
The markets are expecting the Fed to cut the fed funds target range by 25 bp at the conclusion of today’s FOMC meeting. However, the markets will focus on the Fed’s new economic forecasts and interest rate projections, or dot plot, to see if policymakers’ expectations match market projections for a total of about 70 bp in rate cuts by year’s end.
On Thursday, weekly initial unemployment claims are expected to fall by -23,000 to 240,000.
Overseas stock markets today are mixed. The Euro Stoxx 50 is up by +0.11%. China’s Shanghai Composite closed up +0.37%. Japan’s Nikkei Stock 225 closed down -0.25%.
Interest Rates
December 10-year T-notes (ZNZ5) today are down by -2 ticks. The 10-year T-note yield is up by +0.6 bp to 4.034%. T-notes are slightly lower ahead of today’s FOMC decision. T-note prices saw support from today’s weaker-than-expected US Aug housing starts and building permits reports. T-notes also have support from expectations that the Fed will cut interest rates by at least -25 bp at today’s conclusion of the 2-day FOMC meeting.
Concerns about Fed independence are negatively impacting T-note prices due to President Trump’s attempt to fire Fed Governor Cook and Stephen Miran’s intention to hold a Fed Governor position while remaining technically in his White House role on the Council of Economic Advisors.
European government bond yields are moving lower today. The 10-year German bund yield is down -1.5 bp to 2.678%. The 10-year UK gilt yield is down -1.6 bp to 4.623%.
Eurozone Aug CPI was revised lower to +2.0% y/y from the previously reported +2.1% y/y. The Aug core CPI was left unrevised at +2.3% y/y.
UK Aug CPI was unchanged from July at +3.8% y/y, right on expectations. Aug core CPI eased to +3.6% y/y from +3.8% y/y in July, right on expectations.
Swaps are discounting a 2% chance for a -25 bp rate cut by the ECB at its next policy meeting on October 30.
US Stock Movers
Nvidia (NVDA) is down more than -2% to lead losers in the Dow Jones industrials after the Financial Times reported that the Cyberspace Administration of China, China’s internet watchdog, has instructed the country’s biggest companies to terminate orders for Nvidia’s RTX Pro 6000D chip.
Weakness in the Magnificent Seven technology stocks is a negative factor for the overall market. Amazon.com (AMZN), Tesla (TSLA), and Meta Platforms (META) are down more than -1%. Also, Alphabet (GOOGL) is down -0.77% and Microsoft (MSFT) is down -0.34%.
Manchester United (MANU) is down more than -6% after reporting a Q4 loss and cutting its 2026 revenue outlook.
Uber Technologies (UBER) is down more than -4% to lead losers in the S&P 500 on signs of insider selling after an SEC filing showed CEO Khosrowshahi sold $28.6 million of shares last Friday.
Duolingo (DUOL) is down more than -3% after the Hungarian Competition Authority said it has opened a probe into the company’s practices.
Progressive Corp (PGR) is down more than -1% after BMO Capital Markets downgraded the stock to market perform from outperform.
Roivant Sciences Ltd (ROIV) is up more than +12% after it said its brepocitinib, which it developed with Priovant Therapeutics to treat dermatomyositis, met its primary endpoint in a Phase 3 trial.
Workday (WDAY) is up more than +8% to lead gainers in the S&P 500 and Nasdaq 100 after Guggenheim Securities upgraded the stock to buy from neutral with a price target of $285.
Zillow Group (ZG) is up more than +3% after Bernstein upgraded the stock to outperform from market perform with a price target of $105.
Walmart (WMT) is up more than +2% after Bank of America raised its price target on the stock to $125 from $120.
MasTec (MTZ) is up more than +1% after Wolfe Research upgraded the stock to outperform from peer perform with a price target of $227.
Earnings Reports(9/17/2025)
Cracker Barrel Old Country Store (CBRL), General Mills Inc (GIS).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
