Technology stocks and semiconductors had a strong week following Intel’s news flow, but the leadership has changed. Also, a fresh all-time high for the Russell 2000 after a period of consolidation since 2001

The market déjà vu is real: after 164 trading days, the S&P 500 is up 10%—exactly the same gain seen at this point in Trump’s first term. Each week, the Syz investment team takes you through the last seven days in seven charts.

Major U.S. stock indexes rose to record highs during the week; Small-cap stocks rallied, with the Russell 2000 Index gaining 2.16%. The Nasdaq advanced 2.21% for the week, while the S&P 500 Index and Dow Jones Industrial Average added 1.22% and 1.05%, respectively. As expected, the Fed lowered short-term interest rates. Recent weakness in the labor market appeared to be the driver of the central bank’s decision to lower borrowing costs. The Fed’s Summary of Economic Projections indicated that most policymakers expect to lower the central bank’s policy rate by an additional 50 basis points by the end of the year, representing more easing than their last projections made in June. Expectations for rate cuts in 2026 and 2027 also increased.

Analysis of Fed decision and press conference on 17.09.2025

Flash note

Credit and EM spreads continue to tighten. The USD yield curve “twisted” last week while the ECB meeting pushed EUR rates higher across all maturities.

Meanwhile, are the tariffs actually helping the US trade deficit? Each week, the Syz investment team takes you through the last seven days in seven charts.

Most major U.S. stock indexes finished the week higher ahead of the Fed September 16–17 monetary policy meeting, at which the central bank is widely expected to lower short-term interest rates. Enthusiasm surrounding the ongoing AI boom—supported by Oracle’s announcement of a substantial guidance increase amid several large new AI deals—also helped lift major indexes. The Dow, S&P 500, and Nasdaq all notched new record highs during the week, although the Dow and S&P 500 both pulled back modestly in a relatively quiet trading session on Friday. The Russell 2000 Index also advanced, logging its sixth straight week of gains.

Today’s release of the August consumer price index (CPI) was mostly in line with expectations: Headline numbers came in a tad stronger than expected, and pushed the index up from 2.7% to 2.9%, while the core index (excluding prices for energy and food) stayed at 3.1%. Together with the softer than expected producer prices (PPI) from yesterday and higher than expected initial jobless claims (263k instead 236k, driven by a strong outlier from Texas) the CPI will not pivot the US central bank (FED) away from a 25 basis point rate cut in September. But we don’t expect a larger cut and remain sceptical about the 3 rate cuts the market is currently pricing for the remainder of the year – why is that?

US Treasury rates fell at the end of last week following the release of US employment data, as Fed’s rate cut expectations were revised.