ICM Monthly Outlook - September 2025

The latest market insight from ICM reports that U.S. equity indices continue to climb, reaching multiple new all-time highs since July. The S&P 500, which surpassed its previous peak from February 2025, is up 11.95% year to date, while the NASDAQ is up by 14.66%. Key highlights from the report include an update on gold's performance, the treasury bond rally, and the Federal Reserve's influence.

As the Federal Reserve shifts towards a more dovish stance, driven by deteriorating employment data, it has set the stage for potential rate cuts. Chairman Powell essentially guaranteed a 25-basis-point rate cut in September, marking a turning point from a restrictive to an accommodative policy. This change is expected to support risk assets and continue the upward trend in equity markets.

For a comprehensive analysis of the current market dynamics and future outlook, read our full market review here.