This content was published on

September 16, 2025 – 14:33

(Bloomberg) — Wall Street traders gearing up for the Federal Reserve decision refrained from making big bets as they awaited clues on the path of rates that will shape the outlook for markets over the next few months.

The latest reading on retail sales did little to move markets in early US trading, with equities holding gains and bond yields remaining close to their recent lows.

Listen to the Stock Movers podcast on Apple, Spotify or anywhere you listen.

US retail sales rose in August for a third month in a broad advance, rounding out a resilient summer of spending. The value of retail purchases, not adjusted for inflation, increased 0.6% after a similar gain in July. Excluding cars, sales climbed 0.7%.

S&P 500 contracts signaled the US equity benchmark will open at a fresh record, with the Nasdaq 100 poised to rise for a 10th consecutive session. The yield on 2-year Treasuries was little changed at 3.53%. The dollar fell.

“It is likely that a sense of ‘Fed paralysis’ begins to grip markets as traders position into the decision,” said Tom Essaye at The Sevens Report.

Bank of America Corp.’s latest survey showed a net 28% of global fund managers are overweight equities. Opinions about growth showed the sharpest improvement in almost a year.

There are “bulls galore” as the risk of a “recessionary trade war” has ebbed, strategist Michael Hartnett. wrote in a note. He added that equity exposure isn’t at extreme levels yet, which bodes well for the rally to continue for now.

Worries have been mounting that the S&P 500’s surge becoming a bubble. While critics point to the tech sector’s outsize influence on this year’s gain, it’s the rest of the market that is starting to look a bit overpriced, according to Seaport Research Partners.

An index of S&P 500 companies that excludes the technology sector has risen a solid 13% over the last year, but has seen profits grow by just 6.4%, according to data compiled by Bloomberg Intelligence. The S&P 500 Information Technology index has surged 27%, a rate that looks more restrained when put up against the sector’s earnings growth of 26.9%.

Corporate Highlights:

Tesla Inc. is being investigated by US auto safety regulators over issues with door handles on certain Model Y vehicles that could result in occupants becoming trapped inside. Treasury Secretary Scott Bessent said US negotiators expressed disappointment to their Chinese counterparts when they learned during trade talks of China’s ruling that Nvidia Corp. had violated anti-monopoly laws with a high-profile 2020 deal. Alphabet Inc.’s Google said it will invest £5 billion ($6.8 billion) over two years in the UK to help build an artificial intelligence economy in the country. President Donald Trump filed a $15 billion defamation and libel lawsuit against The New York Times, accusing the paper of serving as a “mouthpiece” for the Democrats. United Airlines Holdings Inc. Chief Executive Scott Kirby says improving travel demand going into the fall indicates the economy is stronger than statistics show. Novo Nordisk A/S plans to seek US regulatory approval for a high-dose version of its blockbuster weight-loss shot Wegovy, another effort to counter Eli Lilly & Co. in the booming obesity market. Walt Disney Co. is bringing all of its marquee comics to a new digital platform and app in partnership with Webtoon Entertainment Inc., sending shares of the upstart company soaring. Performance Food Group Co. and US Foods Holding Corp. reached an agreement to share information on a potential combination that would create a distribution firm with roughly $100 billion in sales. Some of the main moves in markets:

Stocks

S&P 500 futures rose 0.1% as of 8:30 a.m. New York time Nasdaq 100 futures rose 0.2% Futures on the Dow Jones Industrial Average were little changed The Stoxx Europe 600 fell 0.2% The MSCI World Index was little changed Currencies

The Bloomberg Dollar Spot Index fell 0.2% The euro rose 0.3% to $1.1798 The British pound rose 0.2% to $1.3632 The Japanese yen rose 0.2% to 147.14 per dollar Cryptocurrencies

Bitcoin was little changed at $115,377.31 Ether fell 0.2% to $4,503.9 Bonds

The yield on 10-year Treasuries advanced one basis point to 4.05% Germany’s 10-year yield advanced two basis points to 2.71% Britain’s 10-year yield advanced three basis points to 4.66% The yield on 2-year Treasuries was little changed at 3.53% The yield on 30-year Treasuries advanced one basis point to 4.67% Commodities

West Texas Intermediate crude rose 1% to $63.95 a barrel Spot gold rose 0.3% to $3,689.79 an ounce ©2025 Bloomberg L.P.