Daily

11 September 2025

NamePriceChange% Chg
Dow46,108.00617.081.36%
S&P 5006,587.4755.430.85%
Nasdaq22,043.07157.010.72%
VIX14.71-0.64-4.17%
Gold3,670.10-3.5-0.10%
Oil62.12-0.25-0.40%

OVERVIEW OF THE US MARKET

Wall Street staged a strong rally this week as investors digested softer inflation data alongside signs of a weakening labor market, reinforcing expectations that the Federal Reserve will deliver its first interest-rate cut of 2025.
U.S. stocks surged to fresh records on Thursday after the final inflation report ahead of next week’s Federal Reserve meeting strengthened expectations of an imminent rate cut. The consumer price index rose 2.9% year-on-year in August, up from 2.7% in July and in line with forecasts. While inflation remains above the Fed’s 2% target, investors believe the central bank will prioritize supporting the slowing labor market. Weekly jobless claims climbed to their highest level since 2021, underscoring the growing strain in employment conditions.

The data reinforced market conviction that the Fed will cut interest rates next week, with many expecting further easing through the year. The move comes against the backdrop of the European Central Bank holding rates steady, after a more aggressive earlier round of cuts compared with the U.S.

Equity markets reacted positively, with the Dow Jones Industrial Average closing above 46,000 for the first time ever. The S&P 500 and Nasdaq also notched new all-time highs, reflecting broad investor optimism that policy easing will extend the market’s momentum.

Corporate news added to market momentum. Adobe projected strong AI-driven revenue growth, while insurers like Centene gained on upbeat Medicare and Medicaid commentary. Technology stocks advanced, with Micron and Nvidia drawing optimism from AI-related demand. In contrast, Boeing flagged further delays to its 777X program, and RH cut its sales outlook due to tariff disruptions. Meanwhile, M&A activity stirred with Paramount Skydance exploring a bid for Warner Bros. Discovery, and Citigroup’s CEO signaling a pickup in dealmaking.

Across asset classes, the rally was broad: Bitcoin climbed above $114,000, ether gained 2%, and equities worldwide echoed the US uptrend. Veteran strategist Ed Yardeni even raised his year-end S&P 500 forecast to 6,800, citing potential for a “meltup” if Fed policy remains supportive.

In short, while inflation remains above target, the rising strain in the jobs market has shifted the Fed’s priorities. A rate cut next week looks almost certain, with markets now debating not whether, but how many, will follow before the year’s end.

OVERVIEW OF THE AUSTRALIAN MARKET

Australian shares closed lower on September 11, 2025, with the S&P/ASX 200 slipping 0.29% to 8,805.0, erasing the prior day’s 0.31% advance amid weakness in health care and financials. The All Ordinaries fell 0.26% to 9,071.4, while small ords gained 0.20% and emerging companies rose 0.34%. 6 of 11 sectors ended higher, led by real estate up 0.68%, energy 0.65%, materials 0.55%, and utilities 0.55%. Health care tumbled 1.76%, financials dropped 0.77%, and consumer discretionary declined 0.45%.

The session was uneventful with mixed breadth, as 113 of 200 constituents fell. Real estate neared a two-week high amid slipping bond yields, while energy snapped a four-day skid on a three-day oil price streak up 2.9%, though rebounding from recent lows. Health care led downside, with broad weakness including Neuren Pharma down 7.4%, Telix 4.4%, ResMed 2.7%, and CSL 2.4% to its lowest since May 2019, down 8.7% post-FY25 results, highlighting post-earnings drift. The market lacks momentum after a 2.7% four-day drop late August to early September, now consolidating between 20- and 50-day averages amid weak seasonality, fiscal debt concerns, and tariff volatility.

Top gainers included 4DMedical up 18.8% rebounding from recent dip, Sunrise Energy Metals 17.3% extending gains, Service Stream 16.0% on DoD contract, PolyMetals 8.0% ramping production, Orora 4.5%, Perenti 4.1% on mine contract. Gold miners shone: Resolute Mining 8.2%, Evolution Mining 6.2%, Regis Resources 6.2%, Pantoro 5.3%, Capricorn Metals 4.5%, St Barbara 4.0%. Decliners featured Nine Entertainment down 35.8% ex-dividend, Boss Energy 12.1% on Honeymoon update, Neuren Pharma 7.4%, CSL 2.3%.

Banks and health care dragged, with all big four lower as Bendigo joined ANZ and NAB in job cuts, weighing cost-cutting versus economic weakness narratives. Energy rebounded, with Woodside and Santos up over 1.2%, the latter on Orica gas deal. Materials posted first gain in a week, though BHP and Rio Tinto faded 0.5% and 0.3% as iron ore dipped below $US105/tonne. Gold held near $US3,633/ounce, about 1% from record, boosting miners like Northern Star up 3.5% and Evolution 6.2%.

The AUD/USD slipped 0.16% to 0.6603, after touching 10-month highs overnight. Investors were in holding pattern ahead of key data and central bank meetings, including US CPI overnight, BoJ, BoE, Fed next week, and AU jobs Thursday. Forecasts eyed core CPI at 0.3% monthly and 3.1% yearly, headline 0.3% monthly and 2.9% yearly; JPMorgan projected S&P 500 reactions from +1.5% on soft to -2% on hot above 0.4%.

Overnight, US CPI showed headline up 0.4% monthly exceeding 0.3% poll, yearly 2.9% in line, core 0.3% and 3.1% as expected, while jobless claims jumped to 263k versus 235k forecast, highlighting labor concerns. Despite hotter headline, US stocks hit records with Dow up 600 points closing above 46,000 first time, S&P 500 and Nasdaq at highs, as markets focused on core stability and jobs weakness, reviving Fed cut bets.

ON THE ASX: The S&P/ASX 200 fell 25.4 points, or 0.29%, to 8,805; All Ordinaries slipped 23.8 points, or 0.26%, to 9,071.4. NZX 50 lost 0.36% to 13,229.15; Nikkei gained 1.21% to 44,372.50.

Companies commencing ex-dividend: Air New Zealand, Breville Group, Kogan.com, McMillan Shakespeare, Navigator Global, Nine Entertainment, Perpetual, SGH, Westgold Resources.

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