By William Collins, consultant in stock markets – Eurasia Business News, September 16, 2025. Article no 1787

U.S. stocks turned lower on Tuesday, September 16, 2025, as the Federal Reserve began its closely watched September policy meeting. The S&P 500 dipped by 0.13%, closing at 6,615.41. The Dow Jones Industrial Average fell 125 points, or 0.27%, to finish at 45,808.95, while the Nasdaq traded slightly below the flatline, reflecting a broader profit-taking sentiment and investor caution ahead of the Fed’s interest rate decision.

Reasons for Decline

Fed Caution: The market’s retreat came as traders awaited a likely 25 basis point rate cut from the Fed—the first since December—with attention focused on Chair Powell’s signals about future monetary policy moves.

Sector Weakness: Technology leaders (including Nvidia, Microsoft, Alphabet, and Palantir) led declines, with pressure also visible in financials and utility stocks.

Retail Sales: Despite robust August retail sales (+0.6% month-on-month, surpassing expectations), the data did not offset interest rate anxieties.

Recent Performance

The S&P 500 and Nasdaq had reached record highs the day before on optimism over U.S.-China trade talks and anticipation of a Fed rate cut, underscoring that Tuesday’s drop started from strong levels.

Market volatility, as measured by the VIX, increased by about 6% on the day, highlighting a more cautious and defensive environment for equities.

Read also : Gold : Build Your Wealth and Freedom

Gold prices hit new record highs, and silver also traded near multi-year peaks. Gold futures closed around $3,690 per ounce, while silver futures ended near $42.88 per ounce.

Both gold and silver rallied ahead of the Federal Reserve’s September meeting, as investors anticipated an interest rate cut and sought safe-haven assets amid continued economic and geopolitical uncertainty. The surge in gold and silver prices reflects strong demand from investors, central banks, and ETFs looking for inflation protection and portfolio diversification.

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© Copyright 2025 – Eurasia Business News. Article no. 1786