U.S. Equities at Record Highs: What you need to know

September was a big month for markets. Central banks shifted gears, U.S. equities and gold broke records, and Australia’s share market passed a historic milestone, though it still trails the global pack.

Meanwhile, the property market continues to show resilience despite affordability challenges.

Here’s what you need to know.

Federal Reserve Cuts Rates

The U.S. Federal Reserve cut rates by 25 basis points to 4.00%–4.25%, marking the start of its long-anticipated easing cycle. 

Lower rates reduce discount rates used in equity valuations and ease borrowing costs — both tailwinds for shares and risk assets.

U.S. Equities Hit Records

Wall Street welcomed the Fed’s decision, with all major indices closing at record highs:

• S&P 500 6,693
• Nasdaq 22,788
• Dow Jones 46,381
• Gold 3,709
• Russell 2000 2,463 is its first record close since 2021, showing smaller companies are finally participating in the rally.

This broadening of market strength is encouraging after years of tech mega-caps driving most of the gains.

Market Movers: Tesla & Alphabet

• Tesla jumped 7% after Elon Musk personally purchased ~$1 billion in stock, his largest open-market buy ever — widely seen as a confidence signal.
• Alphabet reached a $3 trillion market cap, joining Nvidia, Apple, and Microsoft in the elite club. While a major milestone, it underscores how concentrated global indices have become in just a few mega-cap names.
• Nvidia & Intel: Nvidia announced a planned $5B investment in Intel and a collaboration on next-generation chips. This unexpected alliance could reshape competitive dynamics across the semiconductor supply chain, improving capital access and potentially diversifying away from geopolitical bottlenecks.

Gold Powers to Record High

Gold soared above US$3,700/oz, building on five consecutive weekly gains and marking an all-time high. Flows into gold-backed ETFs hit a three-year peak, reflecting investor bets that the Fed’s cutting cycle has further to run.

• Silver has rallied too, with year-to-date gains now above 50%.
• Demand is being driven by Fed easing, central bank reserve buying, and ongoing geopolitical tensions.

Australian Share Market

Australia’s market also broke new ground, with the S&P/ASX 200 topping 9,000 points for the first time ever. But compared to the rest of the world, performance looks subdued.

• The index has returned 8% year-to-date, ranking 22nd out of 30 major global markets.
• The ASX’s reliance on “old world industries” — materials and financials make up nearly half the benchmark — leaves it underexposed to high-growth sectors like artificial intelligence that have powered global rallies.

Still, resources, especially gold miners, remain bright spots, while banks and industrials are closely tied to the domestic property and credit cycle.

Chart below shows 30 year lookback of the stock markets and the power of compound interest

Property Market Update

Prices Hold Firm

Australia’s property market has continued to defy gravity.

Brisbane and Perth are leading annual growth.

Sydney and Melbourne are steady with modest gains.

Hobart remains weaker, while Darwin has delivered surprisingly strong results.

Rental Market Still Tight

Rental pressures persist:

National rents rose 4.1% year-on-year to August.

Vacancy rates remain at record lows across most capitals.

Yields for investors are improving, but affordability challenges are growing for tenants.

Demand vs Supply

Strong migration inflows and below-average housing supply are fuelling competition. With rate cuts expected to improve borrowing conditions, buyer and investor demand could strengthen further into 2026. The key challenge remains affordability, particularly for first-home buyers.

What This Means for You

• Shares & Gold: Lower global rates are supportive for equities, but index concentration highlights the need for diversification. Gold and silver’s breakout underscores the value of holding defensive assets.
• Property: Rising rents and limited supply continue to support investors, while rate cuts may make financing easier. Balancing yield opportunities with affordability risks will be key.

Final Word

From record highs in Wall Street and gold, to Australia’s property resilience and the ASX’s first-ever 9,000-point breakthrough, markets are shifting quickly. The right strategy now could make all the difference over the next cycle.

That’s a wrap for today, thank you for reading our newsletter.