US stocks see profit-taking ahead of today’s FOMC decision. Hong Kong and China markets rally on new stimulus measures. The US dollar pauses after a sharp sell-off.
Profit-taking in US stocks, US dollar remains soft, HK stocks rallied on China’s stimulus
The US stock market has failed to maintain its prior day of bullish momentum and profit-taking activities set in on Tuesday, 16 September, ahead of today’s key risk event; the FOMC monetary policy decision outcome, the release of the latest Fed economic projections, and Fed Chair Powell’s press conference.
After an initial pop-up to fresh intraday all-time highs at the start of the US session, the S&P 500 and Nasdaq 100 reversed and ended the session with minor losses of -0.1% while the Dow Jones Industrial Average continued to underperform with a decline of -0.3%.
In today’s Asia session, the Asia Pacific stock markets fared better, assisted by a softer US dollar. The stellar performers are the Hong Kong and China stock markets, riding on the tailwinds of more stimulus measures from China, as Chinese policymakers issue a new plan to increase consumption, with a new focus on service activities.
Hong Kong’s Hang Seng Index rallied by 1.8% to its highest level since July 2021, and China’s CSI 300 increased by 0.6% towards a three-year high.
In the FX market, the US dollar paused for a breather after yesterday’s sharp sell-off, when the US Dollar Index slid -0.7%, marking its steepest daily loss since 1 August 2025.
In today’s Asia session, the US Dollar Index rebounded modestly by 0.1% as market participants await the FOMC outcome and the fresh monetary policy guidance from the Fed.
Our YouTube video above contains the latest intraday technical analysis on the US Wall Street 30, US Nas 100, US SPX 500, Hong Kong 33, Japan 225, Germany 30, EUR/USD, GBP/USD, AUD/USD, USD/JPY, Gold (XAU/USD), and West Texas Oil, as well as a FOMC preview.
