U.S. stock index futures rose 1.1% before the market opened, popular Chinese concept stocks fell broadly, and spot gold edged up

Wallstreetcn
2025.09.18 23:00
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The Nasdaq 100 index futures rose 1.1%, reaching an intraday high. In pre-market trading, popular Chinese concept stocks in the U.S. fell broadly, with JD.com, PDD, Li Auto, Baidu, and Alibaba down 1%, XPeng down 2%, and Bilibili and Nio down 3%. The U.S. dollar index fell 0.05% to 96.98. Spot gold rose 0.15% to 3665.13

The Federal Reserve's latest interest rate decision, while lowering rates as expected, has tempered market optimism for continued easing due to its cautious policy signals. Investors are reassessing market prospects amid mixed signals.

On Thursday, the 18th, the Nasdaq 100 futures rose 1.1%, reaching an intraday high. Popular Chinese stocks in pre-market trading fell broadly, with JD.com, PDD, Li Auto, Baidu, and Alibaba down 1%, XPeng down 2%, and Bilibili and Nio down 3%. The dollar index fell 0.05% to 96.98. Spot gold rose 0.15% to 3665.13.

European stocks rose broadly, with the German DAX index's gains expanding to 1%. The UK FTSE 100 index opened up 0.21%. The French CAC40 index opened up 0.41%. The Euro Stoxx 50 index opened up 0.64%.

  • Nasdaq 100 futures rose 1.1%, reaching an intraday high. Popular Chinese stocks in pre-market trading fell broadly, with JD.com, PDD, Li Auto, Baidu, and Alibaba down 1%, XPeng down 2%, and Bilibili and Nio down 3%.

  • European stocks rose broadly, with the German DAX index's gains expanding to 1%. The UK FTSE 100 index opened up 0.21%. The French CAC40 index opened up 0.41%. The Euro Stoxx 50 index opened up 0.64%.

  • The yield on the 10-year U.S. Treasury bond fell 2 basis points to 4.057%.

  • The dollar index fell 0.05% to 96.98.

  • The euro/dollar rose 0.14% to 1.1829.

  • Spot gold rose 0.15% to 3665.13.

  • WTI crude oil rose 0.19% to 63.44.

Powell's Speech Suppresses Easing Expectations

The Nasdaq 100 futures rose 1.1%, reaching an intraday high. Popular Chinese stocks in pre-market trading fell broadly, with JD.com, PDD, Li Auto, Baidu, and Alibaba down 1%, XPeng down 2%, and Bilibili and Nio down 3%.

Despite the Federal Reserve implementing a rate cut, the message conveyed is far from purely dovish. Powell's remarks suggest that this action is not the beginning of aggressive easing policies, but rather a cautious response to economic uncertainty, particularly the softening labor market and stubborn inflation.

More importantly, the Fed's dot plot of interest rate forecasts indicates that they expect two more rate cuts this year, but only one by 2026. This contrasts with traders' expectations, who had previously priced in two to three rate cuts next year.

Gina Bolvin, president of Bolvin Wealth Management Group, stated in a statement:

“The Federal Reserve's 25 basis point rate cut is a clear signal: the weak labor market and stubborn inflation prompted policymakers to take action—but it will be gradual. This is not a policy shift, but a well-considered step.” Analysis suggests that despite experiencing daily fluctuations, the major U.S. stock indices are still expected to record gains on a weekly basis.

The U.S. Dollar Index fell 0.05% to 96.98. Spot gold rose 0.15% to 3665.13.

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