On Tuesday, U.S. stock futures showed an upward trend, building on Monday's positive momentum. Anticipation is high among investors for Apple Inc.'s highly-touted 'Awe Dropping' event, coupled with the imminent release of crucial producer and consumer price inflation figures later in the week. Economist Jeremy Siegel projects multiple interest rate reductions by the Federal Reserve before the year's end, citing signs of an economic slowdown. This outlook suggests a favorable environment for equities, particularly for small-cap and cyclical stocks, which are expected to lead the market's broadening rally. Meanwhile, specific companies like Nebius Group and Wolfspeed are making headlines with significant corporate developments.
Tuesday's Market Dynamics and Key Economic Previews
As the trading day commenced on Tuesday, September 9, 2025, U.S. stock futures displayed a generally positive trajectory, signaling a continuation of the previous day's gains across major indices. The financial world is particularly abuzz with Apple Inc.'s much-anticipated 'Awe Dropping' annual event, where new product lines, including the iPhone 17 series, revamped Apple Watches, and AirPods, are expected to be unveiled. This event is a focal point for tech enthusiasts and investors alike. Concurrently, market participants are keenly awaiting vital economic indicators, specifically the producer price inflation data scheduled for release on Wednesday and consumer price inflation figures due on Thursday, which will offer further insights into the economic landscape.
Amidst these developments, the bond market is reflecting expectations of a shifting monetary policy. The 10-year Treasury bond yield currently stands at 4.06%, while the two-year bond is at 3.50%. Projections from the CME Group's FedWatch tool indicate a 100% probability of the Federal Reserve initiating interest rate cuts during its September 17 meeting. This sentiment is largely influenced by a perceived economic deceleration, as highlighted by prominent economist Professor Jeremy Siegel.
Siegel's analysis suggests that recent economic data, including softer payroll gains, persistent manufacturing weakness, and an increase in the U-6 underemployment rate to 8.1%, points to a definitive slowdown rather than a severe downturn. He also notes a significant cooling in healthcare hiring. According to Siegel, this environment strongly supports the case for a September rate cut, with two additional 25-basis-point cuts anticipated in subsequent meetings. He believes that the focus has shifted towards the weakening labor market, implying that even unexpected inflation data might not deter the Fed's easing path. The bond market's anticipation, with the 10-Year Treasury yield approaching its cycle low, reinforces the expectation of looser monetary policy.
In terms of market performance, both the SPDR S&P 500 ETF Trust (SPY) and the Invesco QQQ Trust ETF (QQQ) saw modest gains in premarket trading. On Monday, technology and consumer discretionary sectors led the charge, with notable performances from Broadcom Inc., which continued its rally following strong earnings, and Robinhood Markets Inc., which surged after its inclusion in the S&P 500 index. The Dow Jones index climbed 0.25% to 45,514.95, the S&P 500 increased by 0.21% to 6,495.15, and the Nasdaq Composite achieved a record high with a 0.45% rise to 21,798.70. The small-cap Russell 2000 also saw a 0.16% gain, closing at 2,394.89.
Corporate news also drove significant stock movements. Nebius Group NV experienced a remarkable surge of 48.14% after securing a substantial $17.4 billion deal to provide AI infrastructure to Microsoft Corp. Yext Inc. saw a 2.71% increase following better-than-expected second-quarter earnings. Conversely, Casey's General Stores Inc. declined despite beating first-quarter results. Wolfspeed Inc. skyrocketed by 66.67% after confirming a reorganization plan, indicating its path out of bankruptcy, while Fox Corp. faced a 3.19% drop after announcing a secondary offering of Class B stock.
Commodity markets also registered activity, with crude oil futures trading higher by 1.00% at $62.88 per barrel. Gold Spot US Dollar increased by 0.46% to $3,652.72 per ounce, nearing its all-time high. The U.S. Dollar Index spot dipped by 0.12% to the 97.34 level. Global equity markets showed mixed results, with Asian markets generally varied and European markets also exhibiting a mixed performance in early trading.
Professor Siegel's forecast provides a cautiously optimistic outlook for investors. The predicted easing of financial conditions, driven by bond market movements, is expected to be a significant boon for stocks. While technological giants may continue to lead, the rally is anticipated to broaden, encompassing smaller-cap companies and cyclicals that have historically lagged in periods of high interest rates. Siegel's base case predicts a steady upward climb for the S&P 500 towards the end of the year. However, a contrasting view from University of Michigan professor Justin Wolfers warns of potential 'stagflation,' a challenging scenario characterized by both rising unemployment and persistent inflation. The market's performance in the coming months will largely depend on the interplay between the Federal Reserve's policy decisions and the actual trajectory of economic indicators.