Jerome Powell raises concerns over high stock valuations

In Tokyo, Japan, on September 24, 2025, Asian shares experienced a downward trend, reflecting a recent decline seen on Wall Street. The decline can be attributed to comments made by Federal Reserve Chair Jerome Powell regarding the high valuation of stock prices. In his remarks, Powell highlighted the unusual situation the Fed finds itself in, with increasing worries about the job market alongside persistent inflation above the 2% target. He last spoke publicly after the Federal Reserve made its first interest rate cut of the year just the week prior, adding uncertainty to future monetary policy. On Wall Street, major indexes halted their upward momentum, marking a pause in their recent rally. The S&P 500 saw a dip of 0.6%, with notable declines in other indices as well; the Dow Jones Industrial Average fell by 0.2%, and the Nasdaq composite dropped by 0.9%. This marked the first pullback for these major stock indexes after achieving all-time highs in recent days. Concerns have been raised that the U.S. stock market has surged too quickly and may now be overpriced. Market analysts are keenly awaiting an update due this Friday, which is expected to reflect how U.S. household prices are increasing based on the Fed's preferred measure of inflation. Economists are predicting a slight increase in inflation for the prior month. The developments in Asian and U.S. markets mirror each other, as investors respond to economic signals regarding employment and inflation. In additional market movements, Nvidia, a key company in technology stocks, contributed to the negative trend on Wall Street after witnessing a 2.8% loss. This decline came after the company’s announcement of a partnership with OpenAI to construct data centers. Other technology giants like Amazon and Microsoft also faced losses, contributing to the overall decrease in stock prices. Furthermore, in the bond market, Treasury yields experienced a slight decrease, indicating a broader trend of declining investor confidence. Meanwhile, energy commodities such as crude oil saw marginal gains, with benchmark U.S. crude rising slightly, indicating some stability amid volatility in equity markets.