Markets Today (18 September 2025) at Open: Key Trends from Wall Street to ASX

Overnight Market Summary

• US markets closed mixed after the Fed delivered a widely expected 25 bps rate cut, taking the funds rate to 4.00–4.25%.
• The S&P 500 dipped 0.10% while the Nasdaq lost 0.33% as Powell’s press conference erased earlier gains.
• The Dow Jones rose 0.57% and the Russell 2000 added 0.18%, reflecting strength in small caps and defensives.
• Sector rotation was evident: Financials (+0.96%), Staples (+0.90%) and Materials (+0.36%) outperformed while IT (-0.70%) and Industrials (-0.45%) lagged.
• Global equities were broadly positive, with Hong Kong (+1.78%) and India (+0.38%) leading gains.

Commodities

• Gold (-0.78%): Lower as investors moved into equities and the US dollar firmed after the Fed’s policy update.
• Copper (-1.89%): Weighed down by demand concerns after China restricted Nvidia chip purchases, raising questions about broader tech supply chains.
• WTI Crude (-0.89%): Declined on expectations of softer demand amid slower global growth projections post-rate cuts.

Stock & Corporate Updates

• Nvidia (-2.6%) fell after Beijing ordered local tech firms to halt purchases of its China-specific chips.
• BofA raised minimum hourly wage to $25 across the US.
• StubHub IPO priced at $23.50/share, valuing the company at $8.6bn.
• Nestlé’s chairman stepped down early; Pablo Isla to take over in October.
• Elliott Management disclosed a $2bn stake in Workday.

Global Trade & Policy

• China banned top tech firms from buying Nvidia’s RTX Pro 6000D.
• Trump’s upcoming China trip hinges on Boeing and soybean deals.
• US launched USMCA review with Canada and Mexico, raising trade risks.
• EU firms face delays on rare earth licenses in China.

Central Banks & Economy

• Fed outlook: Additional 50 bps of cuts expected this year, GDP forecast for 2025 raised to 1.6%. Powell emphasized the cut was a “risk management” move.
• Bank of Canada also cut rates by 25 bps to 2.5%, citing weaker growth and easing inflation.
• UK inflation steady at 3.8% in August, with food prices keeping pressure on households.

Industry ETFs

• Gainers: Hydrogen (+7.53%), CleanTech (+2.36%), Lithium & Battery Tech (+1.39%).
• Laggards: Silver (-2.10%), Agriculture (-2.09%), Copper Miners (-1.30%).
• Highlights point to strong interest in renewables while traditional commodity-linked ETFs weakened.

ASX Corporate News

• Mitsubishi lifted its stake in FleetPartners to 20%, paying a 12% premium.
• Symal to acquire McFadyen Group in an $11m deal, expected to be EPS accretive.
• XRG withdrew its $19bn bid for Santos, which may place downward pressure on Santos shares.

Broker Moves

• Adore Beauty initiated at Hold, target $1.25.
• Audinate cut to Equal-weight from Overweight, target reduced to $5.00 (from $11.00).

ASX 200 Outlook – Today

• Futures down 15 pts (-0.16%) as of 8:30am AEST.
• Expect a slightly weaker open due to pressure from commodity prices (gold, copper, oil lower) and sentiment spillover from US tech weakness.
• Financials, Staples and Materials strength may provide some support, but withdrawal of XRG’s Santos bid could weigh on energy names.

Key Events – Domestic

• Ex-dividends today: A2 Milk, Bisalloy, Briscoe Group, Centrepoint Alliance, Cochlear, Lycopodium, Mader Group, Macmahon, NRW Holdings, PWR Holdings, SKS Technologies, South32, Tourism Holdings Rentals.
• Earnings: Bannerman Energy.
• IPO: DPM Metals.
• Dividends payable today: Ansell, Challenger, IAG, ResMed, Sigma Healthcare, Sonic Healthcare, others.

Summary

Markets are in a post-Fed adjustment phase. US equities were volatile, with defensives and small caps outperforming while tech sold off on China-related headlines. Commodities are mostly weaker, reflecting growth concerns and currency moves, which could drag the ASX today. Locally, attention will be on Santos after XRG’s withdrawn bid, corporate moves from Mitsubishi and Symal, and a heavy dividend/ex-div calendar. Expect the ASX 200 to open modestly lower, with sector rotation favoring defensives.

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