Daily Market Update: 22 September 2025

ASX ends third week lower despite Friday gains
The Australian share market ended lower for the third consecutive week, despite finishing Friday on a stronger note amid renewed global rate-cut optimism. The S&P/ASX 200 Index (ASX: XJO) rose 0.3 per cent to close at 8773.5 but fell 1 per cent over the week. With dividend season underway and more than $700 million paid out last week, some of this capital is expected to return to the market, offering support. Investors are increasingly confident of a rate cut from the Reserve Bank of Australia (RBA) in November, with money markets pricing in a 70 per cent chance that the cash rate will be lowered to 3.35 per cent, the lowest in two years.

Healthcare and energy lead sector gains
Healthcare stocks were standouts, with Telix Pharmaceuticals Limited (ASX: TLX) jumping 6.4 per cent to $14.53 after Citi initiated coverage with a “buy” rating, highlighting the potential of its prostate cancer treatment. Pro Medicus Limited (ASX: PME) also gained 4.9 per cent to $313.29, making it Citi’s top pick in the sector. In energy, Santos Limited (ASX: STO) rebounded 0.5 per cent after a sharp weekly fall triggered by the collapse of a takeover bid. Meanwhile, AGL Energy Limited (ASX: AGL) rose 0.3 per cent after gaining government approval for a renewable energy project. Among banks, Commonwealth Bank of Australia (ASX: CBA) led gains, while Westpac Banking Corporation (ASX: WBC) was the only major to fall. However, Super Retail Group Limited (ASX: SUL) was among the week’s weakest performers, shedding 4.8 per cent following leadership turmoil.

Wall Street hits fresh highs on rate cut and earnings optimism
Global equities were buoyant as all three major US indices recorded weekly gains, powered by the Federal Reserve’s first rate cut of 2025, strong earnings, and signs of improved US-China relations. The S&P 500 Index (NYSEARCA: SPY) rose 0.5 per cent to surpass 6600, the Nasdaq 100 Index (NASDAQ: NDX) added 0.7 per cent, and the Dow Jones Industrial Average (INDEXDJX: DJI) climbed above 46,300 for the first time. Notable movers included FedEx Corporation (NYSE: FDX), up 2.3 per cent on strong earnings, Apple Inc. (NASDAQ: AAPL), which surged 3.2 per cent on a price target upgrade, and Tesla Inc. (NASDAQ: TSLA), gaining 2.2 per cent after receiving a bullish analyst rating. A positive phone call between President Trump and Chinese President Xi Jinping further supported sentiment.