Fed Chair Powell Keeps Markets in Check, Oil Prices Rise - Market Wrap for the North American session - September 23

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Following a period of setting new records, U.S. stock markets, particularly the major technology companies, saw a decline.

This was largely due to Federal Reserve Chair Jerome Powell not giving any clear indication that he would support another interest rate cut at the central bank's next meeting in October.

While the stock market dropped from its all-time highs, government bonds held onto their gains.

Powell stated that both the job market and inflation outlooks are uncertain, repeating his previous message that it will be a difficult challenge for policymakers as they consider future interest-rate cuts.

Under pressure from the White House, the Federal Reserve cut its main interest rate by a quarter of a percentage point last week and plans two more cuts this year.

However, after a period of setting new records, the S&P 500 stock index fell by 0.5%, with large technology companies like Amazon and Nvidia leading the declines. At the same time, the yield on ten-year government bonds dropped to 4.11%, and the dollar's value shifted throughout the day. The price of gold, however, remained at its record high. Oil prices rose, fueled by ongoing tensions between NATO and Russia.

Inside the Fed, there are differing views among policymakers. Some are becoming more concerned about a weakening job market and believe the Fed should act to prevent further problems. Others are more focused on the risk that new trade tariffs and other policies could push inflation even higher, above the Fed's target.

This disagreement was highlighted by two Fed officials: Governor Bowman stated that the Fed must be decisive in lowering rates to address the weakening job market. In contrast, Atlanta Fed President Bostic and his counterpart from Chicago, Goolsbee, expressed concerns that more inflation is on the horizon.

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Cross-Assets Daily Performance

Cross-Asset Daily Performance, September 22, 2025 – Source: TradingView

Oil prices led the way today increasing by more than $1 per barrel on Tuesday. This gain was a result of a deal to restart oil exports from Iraq's Kurdistan region stalling, which eased some of the fears among investors about too much oil being available on the global market.

Gold prices saw a drop off similar to US equities after the comments from Fed Chair Powell. The Fed Chair continues to remain calm under growing political pressure and market expectations for further rate cuts.

A picture of today's performance for major currencies

Currency Performance, September 22 – Source: OANDA Labs

The U.S. dollar's value remained mostly stable, as measured by the dollar index.

The dollar index was little changed at 97.25.

The dollar was slightly weaker against both the Swiss franc and the Japanese yen.

Meanwhile, the euro edged up slightly against the dollar, and the British pound remained flat.

A look at Economic data releasing in tonight and tomorrow's sessions

For all market-moving economic releases and events, see the MarketPulse Economic Calendar.

Looking ahead and the Asian session is relatively quiet with the biggest data release coming from Australia with the monthly CPI release.

The European session will bring some medium impact data in the form of Euro IFO data from Germany before markets shift attentions to more Federal Reserve policymakers speaking as well as new home sales data.

Any other developments and comments around the UN as well as discussions between Iran and European powers around a nuclear deal could also have an impact on overall market sentiment.

Safe Trades and an enjoyble week ahead!

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