Financial Markets Grapple with the Fed’s Decision and Powell’s Remarks
Financial markets are called to digest the outcomes of the Fed meeting. Beyond the 25-basis-point cut, investors are assessing the central bank’s next moves and focusing on the health of the labor market. Signs of a slowdown, or hints of a potential recession ahead? In the meantime, equities and bonds are still seen on the rise, while precious metals are slowing on the commodities front. The dollar remains weak.
Our macro dashboards do not show any particular changes. Sentiment remains anchored to risk-on, while equities and bonds continue their upward phase, albeit with less momentum than a few days ago.
On the macroeconomic side, central banks remain in the spotlight. Today, the Bank of England’s decision is awaited, while from the United States updates will come on jobless claims and September’s Philly Fed index.
Our forward-looking analyses continue to indicate a positive trend for U.S. equity markets, with the only exception being the small-cap segment. Considerably more uncertainty lies on the European front, while positive signals are confirmed for Asia. In commodities, precious metals are losing pace, while agricultural commodities are sending positive signals. The dollar is still seen as weak, while the decline in U.S. bond yields continues. Equity volatility is expected to increase slightly.
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NOTES AND WARNINGS
Data compiled by kbmeter.com. Analysis date: 18 September 2025 - 7:07 AM GMT+1
This content is provided for informational purposes only and should not be considered financial advice. All scores and assessments are based on the previous trading day’s closing prices. Futures indications refer to the date and time of the analysis.
