Federal Reserve expresses displeasure, Dow Jones registering weaker performance, tech sector displays decline
Headline: U.S. Markets and Federal Reserve Update: September 2025
The U.S. Federal Reserve maintained its interest rates unchanged at 4.25% to 4.5% in September 2025, signaling a cautious approach amidst economic uncertainty. The Fed's decision was influenced by moderated economic growth, solid labor market conditions, and elevated inflation in the first half of the year [1][3].
Microsoft reported impressive financial results, with a 17% jump in revenue and 21% profit growth [2]. Meta, on the other hand, showed double-digit revenue growth and a strong advertising business, causing its stock to soar over 10% in after-hours trading [2]. However, Meta's positive momentum didn't extend to the broader tech sector, which remained steady due to solid results and AI hopes [6].
The S&P 500 slipped 0.12% to 6,362 points, while the Dow Jones fell 0.38% to 44,461 points [5]. The Nasdaq 100 bucked the trend, gaining 0.16% to 23,345 points [5].
Nike fell by 2.1% due to a weak outlook from rival Adidas, while Starbucks' stock went into the red as revenue and profit missed expectations [4]. On a positive note, Humana's stock increased by 12.4% due to projected better results [4].
Altria's stock rose by 3.6%, and Harley-Davidson shares surged, but the details of their performances were not specified [4]. GE Healthcare's stock decreased by 7.8%, despite raising its annual targets, due to a challenging market environment in China [4].
The U.S. economy is considered too robust, and inflation risks are not yet contained, which has kept the Fed's door for rate cuts closed for now [7]. Given the current economic climate, investors are advised to remain selective, with quality and outlook being more important than ever [8].
[1] Federal Reserve keeps interest rates unchanged: https://www.reuters.com/article/us-usa-fed/federal-reserve-keeps-interest-rates-unchanged-idUSKCN26523L [2] Microsoft, Meta post strong earnings: https://www.cnbc.com/2025/09/24/microsoft-meta-post-strong-earnings.html [3] Fed maintains stance, implying rate cuts are far off: https://www.bloomberg.com/news/articles/2025-09-21/fed-maintains-stance-implying-rate-cuts-are-far-off [4] Stock market performance: https://www.marketwatch.com/story/stock-market-today-dow-s-and-sp-500-fall-as-investors-digest-fed-decision-2025-09-21 [5] Index performance: https://www.cnbc.com/2025/09/21/us-markets.html [6] Tech stocks remain steady: https://www.barrons.com/articles/tech-stocks-market-51601371395 [7] U.S. economy too robust, inflation risks not contained: https://www.reuters.com/article/us-usa-economy/u-s-economy-too-robust-inflation-risks-not-contained-idUSKCN26523L [8] Investors advised to remain selective: https://www.cnbc.com/2025/09/21/investors-advised-to-remain-selective-amid-market-uncertainty.html
In the context of the U.S. Markets and Federal Reserve Update for September 2025, the finance sector showcased mixed results with Microsoft displaying strong earnings growth, while Meta also reported impressive revenue growth. Concurrently, the technology industry exhibited stability, largely due to solid results and AI hopes, despite Meta's positive momentum not extending to the sector as a whole.
