This week’s market performance reflected a delicate balance of cautious optimism and sector leadership, with macroeconomic data and central bank expectations setting the stage for continued growth and policy accommodation. Equity investors rotated into technology and small-cap names, anticipating that the coming Fed rate cuts will support both large and smaller companies as the economic cycle evolves. Yes indeed, the U.S. stock market closed the week ending September 12, 2025, with a resilient advance. The S&P 500 dipped just below its all-time high on Friday but finished the week up 1.6%. The Nasdaq led gains among the major indices, rising 2% for the week as heavyweight technology firms outperformed. The Russell 2000, representing smaller-cap equities, climbed 0.3%, supported by expectations that rate reductions will help these more interest-sensitive firms. The Dow Jones Industrial Average also posted solid gains of 1% for the week, though it lagged the tech-driven indexes.
The Macro
The week’s economic reports painted a nuanced picture. Nonfarm payrolls came in well below expectations, with just 22,000 jobs added and unemployment edging up to 4.3%. The ISM Services index registered a mild 52.0%, signifying modest expansion with signs of labor market softening. Weekly jobless claims ticked up but remained at manageable levels, while productivity growth stayed ahead of wage gains, easing near-term inflation concerns. Altogether, these data points solidified Wall Street’s consensus for a 25-basis-point Federal Reserve rate cut at the upcoming meeting, which could be followed by further easing later in the year.
The Tariffs
A significant legal development unfolded as a federal appeals court ruled much of the prior administration’s tariff regime illegal. While enforcement remains—the present status of all tariffs is unchanged until a potential Supreme Court review—this development added some volatility but limited broader economic implications for now.
The Rates
The Treasury market reflected this economic crosscurrent. The yield on the 2-year Treasury note fell to 3.562%, a three-year low, and the 10-year yield slipped to 4.07%, as investors bet decisively on imminent Fed easing. The yield curve retained its inversion, underscoring ongoing caution about economic growth prospects even as equity markets rallied.
The Market Moving Stocks
Technology bellwethers continued to drive sentiment. NVIDIA soared to a new record, fueled by persistent AI demand and new partnership rumors. Apple advanced 1.7% on supportive judicial rulings and strong consumer momentum. Tesla gained over 10%, buoyed by optimism around its self-driving program and regulatory progress, with even former skeptics shifting to a more bullish stance. Broadcom surged an impressive 9.4% after a standout earnings report revealing a key new AI customer. Meta, McDonald’s, Intel, and Palantir performed in line with sector trends, though Intel modestly lagged top tech peers. Oracle (ORCL) closed up +25.51% higher over the last 5-days after beating estimates and a favorable outlook.
Lively Corporate Deal-making
Novartis announced a $1.4 billion acquisition of Tourmaline Bio, PNC agreed to acquire FirstBank for $4.1 billion, and CoinShares moved toward public markets through a $1.2 billion business combination. The IPO market was robust, with OTG Acquisition Corp. I and Via Transportation, Inc. debuting on NYSE and Nasdaq, respectively, and Figure Technology Solutions (FIGR) also completing a high-profile listing.
The Commodites, Energy & Bitcoin
On the commodities front, gold ($3,680.79, +1.17% over 5-days) and silver ($42.68, +3.03%) rose again, underpinned by the prospect of lower rates. Crude oil settled at $62.60, amid OPEC+ policy uncertainty. Bitcoin (BTC, $116,850 up ~3.89% over he last 5-days and leading crypto-related equities mirrored the risk-on sentiment, advancing alongside broader risk assets and benefiting from inflows into dedicated crypto ETFs.
