Markets on edge as Triple Witching looms 19/09/2025

HOT stories for today

US market wrap:

• Markets pushed higher on Thursday, with traders continuing to price in additional rate cuts through year-end. The Russell 2000 notched its first record close since 2021, as small-cap stocks extended their rally on expectations of cheaper borrowing costs and enthusiasm that any firm with even a hint of AI exposure could land a billion-dollar partnership. With hundreds of billions earmarked for capital expenditures, many believe the AI investment boom will inevitably filter down to smaller players.
• Nvidia’s $5 billion investment in Intel propelled the chipmaker to the top of the S&P 500 and Nasdaq 100 leaderboards. Meanwhile, President Trump, currently entertaining technology executives at a castle in England, is expected to hold a call with China’s President Xi Jinping on Friday to discuss TikTok and broader trade relations.

Is Nvidia’s dominance at risk?

• Huawei is taking direct aim at Nvidia with the launch of its Atlas 950 SuperCluster in Beijing. Built on its own Ascend chips, the system is set to scale beyond 500,000 processors next year and more than 1 million by 2027.

• Huawei claims the design will deliver 6.7x the power of Nvidia’s NVL144 and even outperform Elon Musk’s xAI Colossus.  The debut underscores China’s push for chip self-reliance and Huawei’s ambition to erode Nvidia’s dominance in AI computing, though analysts caution its performance claims may be overly optimistic.

Stocks on the move:

• Wynn Resorts (WYNN): Shares advanced 2% after Stifel boosted its price target to $145, citing strength in international gaming. The new call implies more than 17% upside from Wednesday’s close.
• Allstate (ALL): The insurer climbed 4.8% as reported catastrophe losses for July and August totaled $397 million, far below the $1.38 billion Wall Street expected for Q3.
• Intel (INTC): The chipmaker skyrocketed 28% after Nvidia (NVDA) announced a $5 billion investment to develop PC and data-center products jointly. Nvidia added 3.5% on the news.
• Novo Nordisk (NVO)_ The pharma giant surged 6.3% after late-stage trial results showed its once-daily obesity pill achieved “significant” weight loss, comparable to its blockbuster Wegovy injection.

Watchlist: TSLA, NVDA. INTC, JPM, OPEN, LYFT, RDDT, RBLX

Today’s action

• Asia-Pacific markets mainly traded higher on Friday as investors digested the Bank of Japan’s decision to hold its policy rate at 0.5%, matching expectations from economists. Hong Kong’s Hang Seng slipped 0.4%, while China’s CSI 300 edged up 0.13%.
• In the U.S., stock futures were little changed Thursday night after an intense session that pushed major indexes to fresh records following the Fed’s rate cut. Dow futures rose 80 points (0.2%), while S&P 500 and Nasdaq 100 futures each gained 0.1%. No major economic data or earnings are due Friday, though triple witching options expiration could spark volatility.

Bitcoin

• Bitcoin hovered near $117,500 on Friday, holding gains after the Federal Reserve’s rate cut and muted guidance. Traders noted calm price action despite initial volatility, with institutional inflows into Bitcoin ETFs helping support the market.
• Meanwhile, crypto exchanges such as Coinbase and Bullish advanced on optimism over updated SEC rules easing the path for crypto ETP listings. Still, analysts caution that Bitcoin remains vulnerable, with some warning of a potential deeper drawdown after its strong 2025 rally.
  Watchlist: Bitcoin: 99 000-125 000, Ethereum: 4000-4980, Solana: 160-214

Forex

• EUR/USD held firm in the 1.17–1.18 range on Friday as the dollar stabilized after the Fed’s rate cut, with traders shifting focus to the Bank of Japan decision and upcoming central-bank commentary.
• USD/JPY hovered around 147–148, supported by a stronger greenback ahead of the BoJ meeting, where policymakers are expected to keep rates steady but may signal caution on further tightening.
  Watchlist: EUR/USD: 1.0700-1.1880, USD/JPY: 140-151

Basic Materials

• Gold (XAU/USD) eased from a record peak near $3,707/oz as the U.S. dollar firmed following the Fed’s policy cut, though prices remain elevated with investors still favoring the metal amid easing prospects and persistent geopolitical tensions.
• WTI crude (CL) settled around $63.57, down 0.8%, pressured by renewed growth concerns that outweighed support from Fed policy shifts, while supply risks tied to Russia and the Middle East continue to limit further downside.
  Watchlist: GOLD: 2600-3707, US Oil: 55.60-75.80

Key Economic Events Today:

EST time

02:30 pm: USD FOMC Member Daly Speaks


Earnings

BMO (Before Market Open):

No major earnings report today



The TEFS Analyst team wishes you a successful day!