DBG Markets: Market Report for Sep 24, 2025

Fed Caution Dampens Risk Appetite as Equities and Gold Slips

Fed Chair Jerome Powell struck a cautious tone in his remarks yesterday, noting that the U.S. economy is slowing, with job growth cooling and employment risks rising. Inflation remains above target, driven mainly by tariffs and goods prices.

Fed Chair Powell: Cautious and Data-Dependent

Powell emphasized that there is “no risk-free path” for monetary policy. Cutting rates too quickly could leave inflation too high, while keeping rates elevated for too long may damage the labor market.

He described current interest rates as “modestly restrictive,” which leaves room for further easing if economic conditions weaken. However, he underscored that future actions will rely heavily on incoming data. Powell also defended the Feds independence in response to political criticism. Overall, his tone was balanced — neither clearly dovish nor hawkish.

Importantly, Powell warned that equity valuations appear “fairly highly valued,” hinting at concerns about potential overheating in financial markets.

U.S. Stocks: Cautious Pullback as Valuations Pressured

Following Powells cautious remarks, U.S. equities pulled back from recent highs. The S&P 500 fell about 0.6%, the Nasdaq dropped nearly 1%, and the Dow also slipped, with big tech names such as Nvidia and Amazon weighing on sentiment.

US500 Technical Outlook

US500, Daily Chart

Technically, the US500 is still in a broad uptrend. However, yesterdays candlestick formed a potential bearish engulfing pattern, signaling the risk of a near-term pullback.

US500, H1 Chart

On the lower time frame, key short-term support sits in the 6665–6635 area. A break below this zone could open the way for a deeper correction.

Powells cautious tone may continue to dampen sentiment in the near term, and this could be reflected if US500 extends losses below this support range.

Gold: Strong but Near Resistance

Gold hit a new record near $3,791 per ounce yesterday but later pulled back, failing to break the key psychological $3,800 level. Powells cautious comments may have slowed the rally.

XAUUSD, H1 Chart

Technically, the near-term support is at 3760–3740. As long as gold holds above this zone, the bullish outlook remains, with potential for another leg higher. If this area breaks, a deeper pullback could unfold toward 3715–3700.

XAUUSD, Daily Chart

On the broader trend, golds rally remains intact. However, traders should stay cautious of short-term pullbacks and monitor lower timeframes for early signs of weakness.

Bottom Line

Powells latest remarks highlight a cautious and data-dependent Fed, leaving markets without a clear signal on the next move. U.S. stocks are showing signs of fatigue as valuations come under pressure, while gold remains strong but faces resistance near $3,800.

In the near term, traders should watch key technical levels — 6665–6635 on US500 and 3760–3740 on gold — as breaks below these supports could trigger deeper pullbacks. Upcoming economic data will be critical, as any repricing of Fed expectations could further sway market sentiment.