Equities end lower as valuation concerns creep in
Wed September 24, 2025 6:14 PM
Something happened at 11 a.m. that sent the whole market into a tailspin, the Dow into a 3-digit loss and the Nasdaq not much better. The likely trigger was yet again Powell who made the comment, oft presented previously but now just in case you don’t believe me -- valuations are way too high and that more rate cuts would only make them go higher. All the indexes have seen record highs in recent days and the S&P alone is trading at multiples of 23-24, numbers not seen in years, with projected annualized earnings growth of 15% over the next five years.
The small-cap Russell has recently catapulted to heights also not seen in years. Analysts are comparing Powell’s cautionary notes to Greenspan’s 1996 speech about “irrational exuberance” just before the dot-com bubble. Today’s expert commented that “the idea that people might be using Powell’s comments to trim back a little makes sense.” Meanwhile, the PCE report, the Fed’s preferred inflation gauge, comes later this week. The report on new home sales saw them skyrocketing 20.5% last month. Volume came in at 18.04 billion, a shade above the 17.75 average.
DJ: 46,292.78 -88.76 NAS: 22,573.47
-215.50 S&P: 6,656.92
-36.83 9/23
DJ: 46,121.28 -171.50 NAS: 22,497.86
-75.62 S&P: 6,637.98
-18.94 9/24
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