US Stock Futures Rise After First Fed Rate Cut Of The Year

Mumbai, 18 September 2025: US equity-index futures rose after the Federal Reserve eased borrowing costs, with investors considering what is next for policy. S&P 500 and Nasdaq 100 contracts were up about 0.4% in early trading, following small losses in the previous session. Asian stock futures were mixed, while Treasuries declined across the curve and the two-year yield increased by about five basis points. The dollar firmed.

Fed Signals A Meeting-by-Meeting Path

The central bank reported a consensus-expected 25 bps cut and emphasized decisions will be made meeting by meeting. The policymakers now estimate two more quarter-point cuts this year, one more than the June estimate. The revised path maintains a positive risk sentiment without eliminating timing uncertainty.

Tech And AI Remain In Focus Near Highs

Equities hit record highs this week as the rate cut was already priced in before the announcement. With policy loosening in process, interest in technology and AI stocks continues to be strong, and profit taking has been minimal, given markets are trading near highs.

Cross-Asset Moves To Watch

Treasury weakness and the increase in short-dated yields are a reflection of a market adapting to the new rates glide path. A stronger dollar and mixed Asian cues complete the early session backdrop, with investors watching to see if easing expectations translate into more consistent momentum for growth and rate-sensitive names.

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