Key Takeaways

• Top story: The Federal Reserve reduced rates by 25 basis points to 4.25%, marking its first policy cut of 2025.
• Gold reached a record $3,763 per ounce as demand for safe havens intensified following the rate decision.
• Tech stocks rallied, driven by expectations of lower borrowing costs and continued strength in the AI sector.
• Treasury yields declined below key thresholds after the Fed’s move, indicating a shift in investor risk preferences.
• Volatility increased across digital assets as capital rotated toward stability-focused investments.
• Analysts noted renewed attention on tech innovation amid broader macroeconomic easing.

Introduction

On 24 September 2025, the Federal Reserve made its first interest rate cut of the year, lowering its benchmark rate by 25 basis points to 4.25%. This policy shift sparked heightened demand for safe-haven assets, with gold reaching a record high, and influenced market sentiment for both investors and the broader technology sector.

Top Story

The Federal Reserve implemented a 25-basis-point interest rate cut on 24 September 2025, reducing the benchmark rate to 4.25%. This move represented the Fed’s first policy easing of the year.

Federal Reserve Chair Jerome Powell stated that moderating inflation and a cooling labor market influenced the decision. He explained that risks related to employment and inflation goals are becoming more balanced. Updated projections now indicate the possibility of additional rate reductions through 2026. The Fed revised its GDP growth outlook for 2025 to 2.1%, down from a previous forecast of 2.4%.

Market reaction was immediate. The S&P 500 rose 2.3% following the announcement. Financial sector stocks underperformed, while technology and real estate sectors saw gains. Treasury yields dropped sharply, reflecting increased risk appetite and portfolio rebalancing among investors.

Also Today

Tech Sector

Apple’s supply chain experienced disruptions as major Asian suppliers reported delays impacting the latest iPhone lineup. Foxconn, the primary assembler, announced a two-week manufacturing slowdown at its Zhengzhou facility due to component shortages.

In related news, Microsoft expanded its AI collaboration with OpenAI through a new $5 billion investment. The agreement includes exclusive cloud infrastructure arrangements and deeper integration of advanced AI models across Microsoft platforms.

Energy Markets

Crude oil prices advanced by 3.2% after OPEC+ members agreed to extend production cuts through March 2026. Brent crude settled at $89.45 per barrel, while WTI reached $86.70.

Meanwhile, European natural gas storage facilities reached 95% capacity ahead of winter, contributing to a 15% decline in natural gas prices for the month. Dutch TTF futures, the European benchmark, dropped to €35 per megawatt-hour.

Market Wrap

US Markets

Major US indices moved higher. The Dow Jones Industrial Average closed up 1.8% at 38,750, and the Nasdaq Composite gained 2.7%. Treasury yields declined, with the 10-year note falling by 15 basis points to 4.35%.

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Global Markets

European equities followed US gains, with the STOXX 600 index rising 1.5%. Asian markets closed with mixed results prior to the Fed’s announcement. Japan’s Nikkei fell 0.3%, while China’s Shanghai Composite increased by 0.8%.

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What to Watch

• European Central Bank Monetary Policy Meeting: 1 October 2025
• US Non-Farm Payrolls Report: 3 October 2025
• Q3 Earnings Season Begins: 7 October 2025
• G20 Finance Ministers Meeting: 15 October 2025

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Conclusion

The Federal Reserve’s rate cut on 24 September 2025 set a new tone for global markets. It lifted equities and safe havens while shaping sector performance and investor sentiment. Ongoing developments in monetary policy, energy pricing, and technology will remain key drivers. What to watch: the European Central Bank meeting on 1 October, US non-farm payrolls on 3 October, and the start of Q3 earnings on 7 October.

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