NextFin news, Global stock markets experienced gains on Friday, September 12, 2025, driven by growing investor optimism that the U.S. Federal Reserve will soon cut interest rates. This sentiment was reflected in major markets such as the New York Stock Exchange and Japan's Nikkei 225.
In New York, traders observed a moment of silence at the New York Stock Exchange on Thursday to mark the 24th anniversary of the September 11 attacks, before markets moved higher on Friday amid hopes of monetary easing. According to The National, analysts are pricing in two or three rate reductions by the Federal Reserve in 2025, with the first potentially occurring at the Federal Open Market Committee (FOMC) meeting scheduled for the following week.
Japan's Nikkei 225 index surged 0.89% to close at a record high of 44,768.12 on Friday, September 12, 2025, buoyed by expectations of global interest rate cuts. The index reached an intraday peak of 44,888.02, its highest level since the 1990s. Chip-related stocks led the rally, tracking gains in U.S. technology shares. The broader Topix index also rose 0.4%, closing at 3,160. For the week, the Nikkei 225 posted a 4.07% gain, its largest weekly point increase since September 2024, as reported by Business Today Malaysia.
Investor sentiment was further supported by concerns over a slowdown in the U.S. jobs market, which has increased expectations that the Federal Reserve will cut interest rates to stimulate economic growth. The Federal Reserve's anticipated policy shift aims to counteract economic headwinds and support financial markets.
While the strengthening of the Japanese yen against the U.S. dollar remains a concern for exporters, overall market momentum stayed positive. Market participants worldwide are closely monitoring upcoming economic data and central bank communications for further guidance on monetary policy direction.
The optimism surrounding potential Federal Reserve rate cuts also lifted U.S. technology stocks, with the Nasdaq Composite hitting record highs on Friday. This surge was driven by investor enthusiasm for easing monetary conditions, as reported by Scottsdale.org.
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