US Equity Indexes Mixed, Treasury Yields Rise as Michigan Consumer Sentiment Drops to Four-Month Low

12:57 PM EDT, 09/12/2025 (MT Newswires) -- US equity indexes were mixed after midday Friday as investors weighed a drop in the University of Michigan's consumer sentiment to the weakest since May alongside hotter medium-term inflation expectations.

The Nasdaq Composite rose 0.4% to 22,140.1, the Dow Jones Industrial Average fell 0.4% to 45,918.5, and the S&P 500 was little changed at 6,588.9. Consumer discretionary and technology were among the gainers intraday, while materials and healthcare led the decliners.

Most Treasury yields rose, with the 10-year up 5.9 basis points to 4.07% and the two-year rate 3.3 basis points higher at 3.56%.

The University of Michigan's preliminary consumer sentiment index declined to 55.4 in September from 58.2 in August, missing the 58.0 estimate compiled by Bloomberg. One-year inflation expectations in the Michigan poll were 4.8%, unchanged from August and in line with the guidance in the Bloomberg poll. However, five-year inflation expectations climbed to 3.9% from 3.5%, versus the 3.4% consensus.

"Consumers continue to note multiple vulnerabilities in the economy, with rising risks to business conditions, labor markets, and inflation," Surveys of Consumers Director Joanne Hsu said in a statement. "Likewise, consumers perceive risks to their pocketbooks as well; current and expected personal finances both eased about 8% this month."

Ahead of the two-day Federal Reserve's monetary policy meeting next week, markets are pricing a 77% probability that the Federal Open Market Committee will lower interest rates by 75 basis points between now and December, up from 65% a week ago, according to the CME FedWatch Tool.

There is zero chance, unchanged from a week earlier, that the Fed will leave rates unchanged on Sept. 17, meaning the policy easing cycle will resume this month.

West Texas Intermediate crude oil futures jumped 0.9% to $62.92 a barrel. The Ukraine strike overnight on Russia's Primorsk oil port near St. Petersburg damaged the port and pipeline pumping stations, Bloomberg reported.

In company news, Paramount Skydance (PSKY) is preparing a majority offer backed by the Ellison family for Warner Bros. Discovery (WBD) , according to media reports on Thursday, citing people familiar with the situation. Warner Bros. shares surged 15% intraday, the top gainer on the S&P 500 and the Nasdaq. Paramount shares advanced 3.1% intraday, among the leaders on the S&P 500.

BofA Securities adjusted its price target on Lululemon Athletica (LULU) to $185 from $210 while maintaining its neutral rating. Shares of Lululemon were trading 2.7% lower intraday, among the steepest declines on the Nasdaq.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.