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US stock indexes are mixed today (September 23, 2025), taking a breather after a run of record highs. The Dow Jones Industrial Average inched up to a fresh all-time high, while the S&P 500 and NASDAQ Composite slipped slightly. Investors turned cautious after the recent rally and looked ahead to an afternoon speech by Federal Reserve Chair Jerome Powell for clues on the policy outlook.
The Dow rose about 0.3%, reaching an intraday record high, as gains in energy stocks provided support. Crude oil prices jumped over 1%, lifting energy shares and boosting the Dow. Boeing rallied on a major aircraft order, adding to the index’s advance.
Meanwhile, the S&P 500 and NASDAQ each dipped around 0.1% after closing at record highs on Monday as some investors took profits in high-flying tech shares. Recent leaders, such as NVIDIA and Amazon.com, have fallen back from their peaks, weighing on the NASDAQ. At the same time, the rally broadened beyond technology as smaller companies climbed. The Russell 2000 index hit its own record high, reflecting wider market participation.
Traders are now awaiting Fed Chair Powell’s speech for any new signals on monetary policy. Last week, the Federal Reserve cut interest rates by a quarter point to support growth amid signs of a softening labor market - a move Powell called “risk management.” Wall Street broadly expects further rate reductions at the Fed’s October and December meetings. Powell is likely to emphasize a data-dependent approach.
Fed officials have sent mixed messages about how quickly to ease policy. A regional president urged caution against slashing the rate too rapidly and reigniting inflation, while a Fed governor proposed that the bank might act faster should the economy show weakness.
The gap highlights the tension between investors' expectations for swift rate relief and the Fed's gradual approach. This urge and response may cause volatility if market expectations don't align with official guidance.
The fundamentals are also favorable, given rising corporate earnings projections. A wave of upbeat third-quarter profit forecasts - the most in a year - has lifted expected S&P 500 earnings growth to roughly 7%. This optimism helps counter worries about elevated valuations.
Tuesday’s economic data was mixed. The US current account deficit narrowed to $251.3 billion in Q2, better than forecasts.
September’s flash manufacturing PMI eased to 52.0 from 53.0, indicating factory growth cooled slightly but remained in expansion. In the bond market, the 10-year Treasury yield fell to approximately 4.13% amid expectations of a dovish Fed. Meanwhile, gold prices surged over 1% to a near high of $3,800 an ounce on safe-haven demand.
