Published by Global Banking & Finance Review®
Posted on September 16, 2025
3 min readLast updated: January 21, 2026
Add as preferred source on GoogleGlobal stocks rise slightly as US yields drop ahead of the Fed meeting. The Federal Reserve is expected to cut interest rates, impacting currencies and commodities.
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By Chibuike Oguh and Sara Rossi
NEW YORK/LONDON (Reuters) - An index of world equity markets edged higher in choppy trading after hitting a record high on Tuesday ahead of the widely expected start of the Federal Reserve's interest rate cutting cycle, while U.S. Treasury yields and the dollar fell.
MSCI's all-country index was a shade higher by 0.04% after rising as far as 978.74, a record high. Wall Street stocks erased earlier session gains and finished lower, with utilities and real estate making the most losses while energy and consumer discretionary shares led the gains.
The Dow Industrial Average fell 0.27% to 45,757.90, the S&P 500 fell 0.13% to 6,606.76 and the Nasdaq Composite fell 0.07% to 22,333.96.
The pan-European STOXX 600 dropped 1.14%, led by declines in financials, real estate and industrials stocks.
"Today is more of a sideways move than anything else," said Mark Hackett, chief market strategist at Nationwide. "It felt like yesterday where we had a little bit of a surge and today a little bit of a pullback. But the reality is this is all just waiting to see what happens tomorrow afternoon."
The Fed is expected to cut its benchmark interest rate by a quarter of a percentage point to the 4.00%-4.25% range at the end of its monetary policy meeting on Wednesday.
Stephen Miran was sworn into his Fed position on Tuesday morning, after the U.S. Senate narrowly confirmed him to the central bank's Board of Governors ahead of its policy meeting. A U.S. appeals court separately declined to let President Donald Trump fire Fed Governor Lisa Cook.
The yield on benchmark U.S. 10-year notes fell 0.6 points to 4.028%. The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, fell 2.6 basis points to 3.51%.
"You've had a really incredible run in the past couple of weeks: five out of the last six weeks positive ... record highs pretty much across the board. To me this is just a pause and a sideways, wait-and-see movement rather than a significant drop," Hackett said.
Bets on Fed cuts have in turn kept pressure on the dollar, which on Tuesday fell to its lowest since July 4 against a basket of currencies.
The dollar weakened 0.64% against the Japanese yen to 146.45 and fell 1.04% to 0.786 against the Swiss franc.
The euro traded at its highest since September 2021 against the dollar. It was last up 0.87% at $1.1862. Sterling climbed to its highest in more than two months at $1.365.
The dollar index fell 0.714% to 96.653, its lowest level since July 1.
Gold rose as the dollar weakened. Spot gold rose 0.36% to $3,692.10 an ounce.
Oil prices rose as markets weighed a potential disruption of supplies from Russia due to Ukrainian drone attacks on its ports and refineries.
Brent crude futures rose 1.5% to settle at $68.47 a barrel. U.S. West Texas Intermediate crude settled at $64.52, up 1.9%.
(Reporting by Chibuike Oguh, Rae Wee, Sara Rossi; Editing by Sam Holmes, Amanda Cooper, Ros Russell, Timothy Heritage and Edmund Klamann)
The Fed is expected to cut its benchmark interest rate by a quarter of a percentage point to the 4.00%-4.25% range at the end of its monetary policy meeting.
Wall Street stocks erased earlier session gains and finished lower, with the Dow Industrial Average falling 0.27% and the S&P 500 dropping 0.13%.
Bets on Fed cuts have kept pressure on the dollar, which fell to its lowest level since July 4 against a basket of currencies.
Gold prices rose as the dollar weakened, with spot gold increasing by 0.36% to $3,692.10 an ounce.
Oil prices rose due to concerns over potential supply disruptions from Russia, with Brent crude futures settling up 1.5% at $68.47 a barrel.
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