Author name: Swapnil Bhatnagar

The week ending September 26, 2025, showed global market divergence driven by new U.S. tariffs and rate speculation. The S&P 500 fell 0.3%, supported by in-line inflation data (core PCE at 2.9%) which maintained rate cut hopes. Conversely, India suffered a sharp 2.7% loss due to pharma tariffs and FII outflows. Australia proved resilient, gaining 0.16% from mining sector strength.

The week ending September 19, 2025, was defined by sharp global policy divergence. The Fed’s first interest rate cut in nine months fueled a record-setting U.S. rally, with the technology-centric Nasdaq Composite surging 2.2%. Conversely, European central banks maintained a cautious, hawkish posture. Meanwhile, weak data confirmed China’s deepening economic slowdown, and Japan took a historic step to unwind its vast ETF holdings.

Global equity markets surged on hopes of an impending U.S. Federal Reserve interest rate cut, fuelled by softening economic data. This “risk-on” sentiment lifted indices worldwide, with the Nasdaq and Nikkei reaching new highs. However, the ECB’s hawkish stance created policy divergence, making the global rally narrowly focused and potentially fragile.