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Powell Signals Possible Rate Cuts. Markets React

Fed Hints at Pivot as Growth Slows October 15, 2025
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Changes in the Market are on display Federal Reserve Chair signals a possible policy shift as markets watch closely for economic cues.

Good Morning,

Fed Chair Powell has signaled a possible shift toward rate cuts, easing investor worries about tighter policy. We break down what he said, why it lifted bank stocks, and how it could shape Q4. If you’re exposed to financials, housing, or just waiting for cheaper credit, this is one to watch.

The Supreme Court prepares to weigh Trump’s tariff powers in a high stakes trade case, the IMF lifts U.S. growth forecasts to 2% on strong AI investment momentum, and Netflix partners with Spotify to stream video podcasts in a major media crossover.

Let your voice be heard, my latest poll and trivia below.

Here are your Morning Bullets.

– Truly yours, Fred Frost


📉 Yesterday's Market Recap

Markets stumbled overall yesterday with mixed signals from earnings and policy uncertainty weighing heavy. Investors grappled with Goldman Sachs’ cost-cutting news and Beyond Meat’s brutal stock drop as debt restructuring fears hit hard.


  • Quantum Stocks Surge: Rally in quantum computing stocks like IonQ and D-Wave squeezed short-sellers hard. → Benzinga

  • Goldman Sachs Layoffs: Announced further job cuts to leverage AI efficiencies, despite headcount growth expectations. → Fortune

  • Beyond Meat Plummets: Stock hit an all-time low of $0.78 after a debt restructuring plan diluting shareholders. → Benzinga



📉 Daily Performance Snapshot

Index/Asset Closing Value Change
S&P 500 6,644.31 -0.16%
Nasdaq 22,521.70 -0.76%
Dow Jones 46,270.46 +0.44%
Gold $4159.60 +0.64%
Crude Oil $58.59 -1.51%
Bitcoin $113,040 -2.36%
10-yr Treasury Yield 4.022% -0.72%

🔭 What to Watch Today

Today’s calendar has a mix of earnings and geopolitical moves that could sway markets, so keep your eyes peeled for these potential catalysts.

  • Bank Earnings Rollout: Bank of America and Morgan Stanley report Q3 results, expected to reflect Wall Street’s trading boom. → CNBC
  • U.S.-China Trade Updates: Trump’s soybean stance could prompt retaliatory rhetoric or policy shifts from Beijing today. → ABC News
  • Goldman Sachs Acquisition Impact: Details on the $965M Industry Ventures deal may signal private market trends. → Fortune

  • 💡 Opportunity Watch

    Amidst the noise of trade spats and earnings, a few under-the-radar plays stand out for savvy investors.

    • Rocket Lab (RKLB): Stock soared premarket after a successful satellite launch, with 21 more missions lined up. → Benzinga
    • iShares MSCI China Small-Cap ETF (ECNS): Rated 'Strong Buy' for resilience against U.S. tariffs and a 4.5% dividend yield. → Seeking Alpha
    • Goodyear Tire (GT): Oversold with RSI at 20.4, potential rebound play after a 21% monthly drop. → StockTwits

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    By clicking any link you agree to receive emails from DailyMarketAlerts and our partners. You can opt out at any time. Privacy Policy


    🔥 The Big Bullet

    Powell Hints at Possible Rate Cuts, Boosting Market Optimism

    What happened: Federal Reserve Chair Jerome Powell gave his strongest signal yet that interest rate cuts may be coming soon. He stated that the Fed may stop shrinking its balance sheet and said the economy has cooled enough to consider easing. Investors quickly took this as a sign that monetary policy could shift toward more support. The remarks led to a broad market rally and lifted investor sentiment heading into Q4. Powell’s tone was softer than usual, with fewer warnings about inflation. Instead, he focused on signs of slowing growth and tightening financial conditions. This change in tone came just as earnings season kicks off. It also follows a year of aggressive rate hikes to fight inflation.


    Why it matters: A shift in Fed policy could make borrowing cheaper and help companies and consumers alike. Powell’s comments suggest that the central bank believes its efforts to slow inflation are working. That could mean fewer hikes or even cuts, in the near future. If that happens, stocks and bonds could continue to rise. The market has already responded positively, with regional banks seeing their best two-day rally since 2016. Investors tend to cheer lower rates because they make loans and investing more attractive. Businesses may also be more willing to hire and expand. Still, the Fed will watch inflation and job numbers closely before making any changes.

    What’s next: The next few inflation reports will be key. If prices continue to cool, the Fed could start cutting rates as soon as early 2026. Powell made no promises, so markets will watch his future comments for more clues. Investors should also keep an eye on bond yields, which may fall if rate cuts become more likely. A shift in rates could also impact mortgage costs, a major concern for homebuyers. As earnings season begins, any signs of weakness in corporate profits could reinforce the Fed’s softer stance. But if inflation ticks back up, the Fed may have to delay any easing. Either way, Powell’s tone this week has clearly changed the conversation.


    Reader Feedback

    Yesterday, in regards to Gold hitting a record high, the majority of you at 44% said "The economy’s in trouble, people are getting nervous,"

    John from Florida replied: “If Gold is hitting a record high, maybe it's the time to sell. Although, it could rise further, so I suppose that's the risk.”

    As always if your opinion is not here, or you want to throw your two cents at me, reply to the E-mail, and let me know your exact thoughts.


    🧭 Policy & Market Ripples

    • Supreme Court Tariff Case: November 5 hearing on Trump’s tariffs could reshape trade policy with billions at stake. → Fortune
    • IMF Upgrades Growth Forecasts: U.S. growth bumped to 2% for 2025, driven by AI investments despite tariff risks. → CNBC
    • Netflix-Spotify Partnership: Video podcasts from Spotify join Netflix, blending media and streaming innovation. → Seeking Alpha

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    Yesterday, 40% of you chose the right answer to the trivia question: The 1980s


    Time is more value than money. You can get more money, but you cannot get more time.
    – Jim Rohn
    Thanks for Reading.

    Make Today, Better Than Yesterday.
    Fredrick Frost
    Editor, MorningBullets

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