{"id":53259,"date":"2025-09-17T16:38:53","date_gmt":"2025-09-17T20:38:53","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/markets-react-to-fed-rate-cut-apple-eyes-foldable-future-and-ma-heats-up\/53259\/"},"modified":"2025-09-17T16:38:53","modified_gmt":"2025-09-17T20:38:53","slug":"markets-react-to-fed-rate-cut-apple-eyes-foldable-future-and-ma-heats-up","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/markets-react-to-fed-rate-cut-apple-eyes-foldable-future-and-ma-heats-up\/53259\/","title":{"rendered":"Markets React to Fed Rate Cut, Apple Eyes Foldable Future, and M&#038;A Heats Up"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li>The <strong>Federal Reserve<\/strong> enacted a widely anticipated <strong>25-basis-point rate cut<\/strong>, bringing the federal funds rate to a range of <strong>4%-4.25%<\/strong>. Markets showed a mixed reaction, with the <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a><\/strong> dipping slightly and the <strong>dollar<\/strong> strengthening. The Fed signaled <em>two more cuts<\/em> are likely this year.<\/li>\n<li><strong>Apple (<a href=\"\/stock\/AAPL\">AAPL<\/a>)<\/strong> is reportedly testing foldable iPhones in Taiwan, aiming for a <strong>10% boost in total phone shipments<\/strong> in 2026, with a preliminary target of producing around <strong>95 million units<\/strong>. The company expects the foldable model to <em>drive overall iPhone demand<\/em>.<\/li>\n<li>Private equity powerhouses <strong>Blackstone (<a href=\"\/stock\/BX\">BX<\/a>)<\/strong> and <strong>TPG (<a href=\"\/stock\/TPG\">TPG<\/a>)<\/strong> have <em>revived their interest<\/em> in acquiring medical device maker <strong>Hologic (<a href=\"\/stock\/HOLX\">HOLX<\/a>)<\/strong> in a deal valued at over <strong>$16 billion<\/strong>, though an initial non-binding offer was rejected.<\/li>\n<li><strong>Morgan Stanley (<a href=\"\/stock\/MS\">MS<\/a>)<\/strong> has strategically combined its Global Energy and Global Power and Utilities investment banking teams to form a new <strong>Global Power and Energy Group<\/strong>, adapting to <em>evolving energy market dynamics<\/em>.<\/li>\n<li><strong>Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> CEO Jensen Huang expressed disappointment over reports that China&#39;s internet regulator ordered major firms to <em>halt purchases of Nvidia&#39;s AI chips<\/em>, acknowledging the &quot;larger agendas&quot; between the U.S. and Beijing.<\/li>\n<\/ul>\n<h2>Federal Reserve Actions and Market Response<\/h2>\n<p>The Federal Reserve announced a <strong>25-basis-point reduction<\/strong> in its benchmark interest rate, setting the new target range at <strong>4% to 4.25%<\/strong>. This move, the first rate cut of 2025, was largely expected by market participants. Following the announcement, the <strong>S&amp;P 500<\/strong> closed down <strong>0.1%<\/strong>, while the <strong>Nasdaq<\/strong> also saw a <strong>0.3%<\/strong> decline. In contrast, the <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/dowjones\/today\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average<\/strong> managed to close up <strong>0.5%<\/strong> at <strong>45,984.88<\/strong>. The U.S. dollar, defying typical post-cut trends, rose for the seventh consecutive Fed day.<\/p>\n<p>The central bank&#39;s policy committee indicated that <em>two more quarter-point reductions<\/em> are likely by the end of this year, with one dissenting vote preferring a larger 50-basis-point cut. In a related development, <strong>Citi<\/strong> announced it would lower its base lending rate to <strong>7.25%<\/strong> from <strong>7.50%<\/strong>, effective September 18, 2025, aligning with the broader easing monetary policy.<\/p>\n<h2>Tech Giants Eyeing New Horizons and Geopolitical Headwinds<\/h2>\n<p><strong>Apple (<a href=\"\/stock\/AAPL\">AAPL<\/a>)<\/strong> is making significant strides in the foldable phone market, reportedly exploring test production of foldable iPhones in Taiwan. The tech giant anticipates this new product line will be a <em>key driver<\/em> for overall iPhone demand, targeting a <strong>10% increase in total phone shipments<\/strong> in 2026, with a preliminary goal of producing approximately <strong>95 million units<\/strong>. This strategy suggests Apple expects a &quot;halo effect,&quot; where the foldable model boosts interest across its entire iPhone lineup.<\/p>\n<p>Meanwhile, <strong>Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> CEO Jensen Huang addressed the ongoing U.S.-China tech tensions, expressing disappointment over reports that China&#39;s internet regulator ordered major firms like ByteDance and Alibaba to halt purchases of Nvidia&#39;s RTX Pro 6000D AI chips. Huang stated that the U.S. and Beijing &quot;have larger agendas to work out,&quot; acknowledging the geopolitical pressures on the chipmaker.<\/p>\n<p>In other tech news, <strong>IonQ (<a href=\"\/stock\/IONQ\">IONQ<\/a>)<\/strong> signed a Memorandum of Understanding with the U.S. Department of Energy to advance the development and deployment of quantum technologies in space. This collaboration supports the DOE&#39;s Quantum in Space initiative, focusing on quantum-secure communications and other space applications. <strong>Tesla (<a href=\"\/stock\/TSLA\">TSLA<\/a>)<\/strong> is also reportedly redesigning its electronic door release mechanisms, a move that follows scrutiny over safety issues related to its vehicle door handles.<\/p>\n<h2>M&amp;A and Corporate Strategy Shifts<\/h2>\n<p>Private equity firms <strong>Blackstone (<a href=\"\/stock\/BX\">BX<\/a>)<\/strong> and <strong>TPG (<a href=\"\/stock\/TPG\">TPG<\/a>)<\/strong> have renewed their interest in acquiring medical device manufacturer <strong>Hologic (<a href=\"\/stock\/HOLX\">HOLX<\/a>)<\/strong>. Sources indicate a joint, non-binding offer exceeding <strong>$16 billion<\/strong> was made, although it was initially rejected. <em>Talks could still resume<\/em>, highlighting the continued appetite for large-cap transactions in the healthcare sector.<\/p>\n<p>On the corporate strategy front, <strong>Morgan Stanley (<a href=\"\/stock\/MS\">MS<\/a>)<\/strong> announced the formation of a new <strong>Global Power and Energy Group<\/strong>. This new entity combines its Global Energy and Global Power and Utilities investment banking teams, a strategic move aimed at adapting to the <em>accelerating demand for power from both traditional and renewable sources<\/em> in the global energy landscape.<\/p>\n<h2>Global Trade and Geopolitical Developments<\/h2>\n<p>Mexico has initiated a public consultation process in anticipation of the 2026 review of the <strong>USMCA<\/strong> trade agreement. This process invites economic sectors and stakeholders to provide input, which will shape Mexico&#39;s position during the joint review with the United States and Canada. This consultation is a critical step to ensure the pact remains effective and aligned with evolving economic priorities.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways The Federal Reserve enacted a widely anticipated 25-basis-point rate cut, bringing the federal funds rate to a range 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