NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
    • The Great NZ Road Trip
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • Deloitte Fast 50
    • Generate wealth weekly
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In

Advertisement
Advertise with NZME.
Premium
Home / Business / Markets / Shares

NZ sharemarket drops after weak GDP data and US Fed rate cut - Market close

Tom Raynel
Tom Raynel
Multimedia Business Reporter·NZ Herald·
18 Sep, 2025 06:06 AM3 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save
    Share this article

    Reminder, this is a Premium article and requires a subscription to read.

Federal Reserve Chair Jerome Powell has signalled two more potential rate cuts in 2025 after cutting for the first time this year. Photo / Andrew Caballero-Reynolds, AFP

Federal Reserve Chair Jerome Powell has signalled two more potential rate cuts in 2025 after cutting for the first time this year. Photo / Andrew Caballero-Reynolds, AFP

The New Zealand sharemarket fell today following a significantly lower gross domestic product update than expected, while the United States Federal Reserve cut interest rates for the first time in 2025.

The S&P/NZX 50 Index closed down 0.82% or 108.34 points, falling to 13,120.03 after 35.8 million shares worth $127.25m were traded.

The S&P/NZX 20 index closed at 7551.33 points, down 1.07%, while the S&P/NZX 10 index ended the day at 12,607.12, falling 0.91%.

There were 70 gainers on the main board and 64 decliners.

Stats NZ data showed New Zealand’s gross domestic product fell by 0.9% in the June quarter, a reduction well over market expectations of 0.3%-0.4%.

Advertisement
Advertise with NZME.

Generate investment specialist Greg Smith said the result underscored the fragility of New Zealand’s recovery, with markets reacting negatively.

“I thought one thing that was interesting was Nicola Willis said ‘We’re past the point of uncertainty’. Well, she said that literally four or five hours after Jerome Powell said there’s still lots of uncertainty,” Smith said.

“These are very lagged numbers and we’ve had a bit more colour since then. If you look at the recent more up-to-date data prints, the manufacturing sector went back into contraction, the housing market is flat at best and the service sector is one of the few in amongst our larger trading peers that is in contraction.”

Advertisement
Advertise with NZME.

Smith said the result increased the prospect of a 50 basis point cut to interest rates in October.

Smith said the New Zealand market was weighed down by Infratil, which had its investor day Thursday.

The company said that Australasian data centre operator CDC remains on track to double its FY2025 earnings by FY2027, but confirmed its own FY2026 guidance remains unchanged.

Infratil’s share price fell 3.12% or 39c to $12.11 after 639,279 shares changed hands on turnover worth $7.77m.

Smith suggested the market’s reaction was likely down to the lack of announcements for new contract wins.

Elsewhere gentailers Mercury Energy, Meridian Energy and Genesis Energy all had share price declines.

Mercury saw its share price fall 12c to $6.65, Meridian fell 6c to $5.63, and Genesis fell 2c to $2.37.

Smith said that a rebalancing occurring on the market tomorrow was likely a factor.

Advertisement
Advertise with NZME.

Meanwhile, Freightways continued its positive run, with its share price rising 5c to $12.80 after 435,123 shares changed hands on turnover worth $5.5m.

Wall Street stocks finished mixed after the Federal Reserve announced its first interest rate cut of 2025 and signalled it could enact two more cuts this year.

The moves corresponded to market expectations and follow recent economic reports showing weaker job growth that Fed Chair Jerome Powell said justified a greater focus on the Fed’s labour market mandate compared with inflation.

US stocks were choppy after the decision, with the Dow Jones Industrial Average ending up 0.6% at 46,018.32.

The broad-based S&P 500 shed 0.1% to 6600.35, while the tech-rich Nasdaq Composite Index declined 0.3% to 22,261.33.

Based on the projections released Wednesday, Hogan said Fed policy makers appeared to be close to evenly split between those who expect at least two interest rate cuts later this year and those who anticipate one or fewer.

Powell reiterated that additional interest rate actions would depend on upcoming economic data.

– Additional reporting AFP

Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.

Save
    Share this article

    Reminder, this is a Premium article and requires a subscription to read.

Latest from Shares

Premium
Shares

Market close: Ebos unwind pulls NZX 50 down 0.68%

22 Sep 06:13 AM
Premium
Construction

Can builders' groups lumped with liability under new regime afford to protect home owners?

21 Sep 05:00 PM
Premium
Shares

Market close: Ebos helps NZ sharemarket erase GDP losses

19 Sep 06:18 AM

Sponsored
|Updated

Poor sight leaving kids vulnerable

22 Sep 01:23 AM
Advertisement
Advertise with NZME.

Latest from Shares

Premium
Premium
Market close: Ebos unwind pulls NZX 50 down 0.68%
Shares

Market close: Ebos unwind pulls NZX 50 down 0.68%

Spark New Zealand rose 1.72% to $2.27.

22 Sep 06:13 AM
Premium
Premium
Can builders' groups lumped with liability under new regime afford to protect home owners?
Construction

Can builders' groups lumped with liability under new regime afford to protect home owners?

21 Sep 05:00 PM
Premium
Premium
Market close: Ebos helps NZ sharemarket erase GDP losses
Shares

Market close: Ebos helps NZ sharemarket erase GDP losses

19 Sep 06:18 AM


Poor sight leaving kids vulnerable
Sponsored
|Updated

Poor sight leaving kids vulnerable

22 Sep 01:23 AM
NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP