Stocks Rise Pre-Bell as Investors Brace for Fed Rate Decision

BY MT Newswires | ECONOMIC | 09/15/25 07:24 AM EDT

07:24 AM EDT, 09/15/2025 (MT Newswires) -- The benchmark US stock measures were pointing higher before the opening bell Monday as traders await a major policy decision by the Federal Reserve due later in the week.

The S&P 500 and the Dow Jones Industrial Average rose 0.2% each in premarket activity, while the Nasdaq edged up 0.1%. The Nasdaq rose to a new peak for the fifth straight day on Friday, while the S&P 500 and the Dow closed lower.

The Fed's monetary policy committee is scheduled to meet Tuesday, with a decision on interest rates due on Wednesday. Markets are widely expecting the central bank's Federal Open Market Committee to lower its benchmark lending rate by 25 basis points, according to the CME FedWatch tool.

"For the Fed, there's still 125 (basis-point) worth easing to get rates back down to the presumed neutral level, and the question is how long that will take given still-stubborn inflation," BMO Capital Markets said in a note published Friday.

Last week, official data showed consumer inflation accelerating in the US at the fastest pace in seven months in August, while the annual core rate remained above 3%. The Department of Labor also reported last week that weekly applications for unemployment insurance reached a nearly four-year high, adding to signs that have ignited fears about a slowdown in the labor market.

President Donald Trump, who has repeatedly called for the Fed to lower interest rates, told reporters on Sunday that he was expecting a "big cut" this week, according to Bloomberg News.

Treasury yields were mixed in premarket action, with the two-year rate retreating 0.2 basis points to 3.56% while the 10-year rate increased 0.8 basis points to 4.07%.

Monday's economic calendar has the Empire State manufacturing index for September at 8:30 am ET.

Shares of Nvidia (NVDA) declined 2.1% pre-bell after a preliminary probe by China's market regulator found the tech bellwether to have breached anti-monopoly law in the country. Opendoor Technologies (OPEN) gained 4.3% after closing Friday down 14%.

Tesla (TSLA) advanced 5.8% before the bell amid media reports that Chief Executive Elon Musk purchased roughly 2.6 million of the electric vehicle maker's shares at various prices for about $1 billion. The company could reach a market capitalization of $2 trillion by the middle of 2026, as it is positioned well to lead the autonomous driving sector, Wedbush Securities said in a recent note.

FedEx (FDX) , Ferguson Enterprises (FERG) , General Mills (GIS) , Lennar (LEN) and Darden Restaurants (DRI) are some of the major companies scheduled to release their latest financial results later this week.

West Texas Intermediate crude oil nudged up 0.1% to $62.78 a barrel before the open. Gold slipped 0.2% to $3,679 per troy ounce, while bitcoin decreased 0.7% to $114,858.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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