Stocks Gain Pre-Bell as Fed Lowers Rates, Signals Further Policy Easing in 2025

07:30 AM EDT, 09/18/2025 (MT Newswires) -- US equity markets were trending higher before the opening bell Thursday as the Federal Reserve delivered its first interest rate cut of 2025 and indicated further policy easing later in the year.

The S&P 500 rose 0.8%, the Dow Jones Industrial Average increased 0.6% and the Nasdaq added 1% in premarket activity. The Nasdaq and the S&P 500 finished lower for the second consecutive day on Wednesday, while the Dow closed in the green.

The Federal Open Market Committee on Wednesday reduced its benchmark lending rate by 25 basis points to a range of 4% to 4.25%, in line with market expectations, noting increased downside risks to employment. The Fed's previous rate cut came in December.

"Recent indicators suggest that growth of economic activity moderated in the first half of the year," the FOMC said following its two-day meeting. "Job gains have slowed, and the unemployment rate has edged up, but remains low."

At his post-meeting press conference, Fed Chair Jerome Powell characterized the central bank's policy move as a "risk management cut."

"Whether this cut was one of 'risk management' or not, we do not think there is anything in today's communication that takes another cut, or a pause, off the table for October," Jefferies Chief US Economist Thomas Simons said in a Wednesday report e-mailed to MT Newswires.

The FOMC's Summary of Economic Projections showed Wednesday that policymakers now see the median federal funds rate at 3.6% at the end of this year, down from 3.9% estimated in June.

Treasury yields were down in premarket action, with the two-year rate retreating 2.3 basis points to 3.52% and the 10-year rate declining 2.7 basis points to 4.05%.

Thursday's economic calendar has the weekly jobless claims bulletin and the Philadelphia Fed manufacturing index for September at 8:30 am ET.

Cracker Barrel Old Country Store's (CBRL) stock (CBRL) fell 9.7% pre-bell after the restaurant chain issued a downbeat full-year outlook and reported fiscal fourth-quarter earnings below estimates. 89bio (ETNB) surged 83% as the company agreed to be acquired by Roche in a deal worth up to $3.5 billion.

Shares of Broadcom (AVGO) rebounded 1.9% early Thursday after closing the previous trading session down 3.8%. PayPal (PYPL) advanced 2.2%, while Lyft (LYFT) added 1.8% following a 13% gain at the close of Wednesday.

Darden Restaurants (DRI) reports its latest financial results before the bell, among others, while parcel delivery giant FedEx (FDX) and homebuilder Lennar (LEN) post earnings after the markets close.

West Texas Intermediate crude oil slipped 0.2% to $63.90 a barrel before the open. Commercial crude stockpiles in the US unexpectedly contracted last week, government data showed on Wednesday.

Gold edged down 0.5% to $3,700 per troy ounce, while bitcoin inclined 1.2% to $117,136.

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