September 23, 2025 (Tuesday)
Economic Indicators
- Richmond Fed Manufacturing Index: -17 (previously -7). Reflects weakness in regional manufacturing, with shipments dropping significantly to -20.
- Markit Manufacturing PMI (Flash): Detailed figures were released, suggesting overall stagnation in the manufacturing sector.
- U.S. International Transactions (Q2): Detailed figures were released, confirming an expansion of the trade deficit.
Key Financial News
- Tech stocks lead market decline: Nvidia and Amazon fall, causing the Nasdaq to drop by about 1%. A correction phase after three consecutive days of record highs.
- Comments from FRB Chair Powell: In his first comments after the rate cut, he emphasized the balance between inflation and employment, showing a neutral stance. Investors digested this, leading to a stock market decline.
Analysis
The worsening Richmond Fed index highlighted the manufacturing slowdown and intensified concerns about a broader economic deceleration. Meanwhile, Powell's remarks, while maintaining market expectations for a rate cut, also cautioned against excessive easing, triggering profit-taking centered on tech stocks. Volatility may increase in the short term, but underlying strength remains.