Powell cools financial markets’ expectations about interest rates
Powell’s remarks are dampening expectations about the number of Fed rate cuts between now and the end of the year. Financial markets are now awaiting the PCE inflation data (Friday) for confirmation. Equities are still seen trending higher, bonds are mixed, and volatility remains stable. Precious metals continue their rally despite overbought indicators still flashing.
Our intermarket dashboards recorded a slight move following Powell’s comments. It is clear that markets had still been pricing in more than two rate cuts by year-end. Equities are slowing, while bonds are bouncing off the 10-day moving average. The underlying trend remains intact for both. The S&P 500 to VIX ratio has dipped slightly but remains around the 50-day average. Gold keeps surging.
On the macroeconomic front, the day brings German business confidence data, Japan’s September PMI survey, and U.S. new home sales.
Our forward-looking analyses continue to point to a positive outlook for equities. In commodities, precious metals still show overbought signals, while agricultural commodities maintain positive momentum. Bonds remain mixed, with more signs pointing to higher prices. Volatility is stable.
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NOTES AND WARNINGS
Data compiled by kbmeter.com. Analysis date: 24 September 2025 - 7:17 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.
