US Equity Indexes Lower Ahead of Fed Policy Decision Despite Robust Retail Sales, Surprise Industrial Production Print

04:34 PM EDT, 09/16/2025 (MT Newswires) -- US equity indexes were lower after close on Tuesday, but were trading close to record levels as the US Federal Reserve remains on course to cut rates following better-than-expected retail sales print and an increase in industrial production.

The Nasdaq Composite slumped 0.07% to 22,333.9, with the S&P 500 down 0.13% to 6,606.7, and the Dow Jones Industrial Average 0.27% lower at 45,757.9. All sectors except energy, consumer discretionary, consumer staples, health care, and communication services fell intraday, with utilities and real estate leading the decliners.

The CBOE Volatility Index jumped 4% to 16.32.

Most Treasury yields fell, with the 10-year yield unchanged at 4.03% and the two-year rate two basis points lower at 3.51%.

Gold futures gained 0.22% to $3,727.2 to reach an all-time high.

In economic news, US retail sales rose 0.6% in August from the prior month, higher than the 0.2% expected in a survey compiled by Bloomberg. The print indicated continued consumer spending despite rising prices and weakness in the US labor market. US business inventories in July, adjusted for seasonal and trading day differences, increased by 0.2% from June, according to the latest US Census Bureau report. Meanwhile, US industrial production rose by 0.1% in August, in contrast with a 0.1% decline expected in a Bloomberg-compiled survey. The Fed is slated to announce its policy decision and the Summary of Economic Projections on Wednesday. Traders are pricing in 96.1% odds of a 25 basis point cut Tuesday, according to the CME FedWatch Tool.

In company news, Warner Bros. Discovery (WBD) shares fell 6.2% in intraday trading, the steepest decline on the Nasdaq and S&P 500. The stock move comes after TD Cowen downgraded the stock to hold from buy. Reports emerged of Warner Bros. Discovery (WBD), Walt Disney (DIS) , and Comcast's (CMCSA) Universal filing a lawsuit against Chinese firm MiniMax Tuesday for allegedly stealing their intellectual property amid speculations that Warner Bros. will be acquired by Paramount Skydance (PSKY).

Steel Dynamic (STLD) shares rose 6.1% after it forecast Q3 earnings to be higher on a sequential and annual basis due to better profits from its operating businesses. The steel maker expects robust shipments and metal spread expansion as demand continues to be driven by the non-residential construction, automotive, energy, and industrial sectors.

Moderna (MRNA) shares climbed 5.7% after its preliminary data from an ongoing phase 4 trial of the 2025-26 formula of Spikevax targeting the LP.8.1 variant of SARS-CoV-2 to prevent COVID-19 showed an 8-fold increase in neutralizing antibodies in those aged 12 through 64 with at least one underlying condition putting them at high risk for severe outcomes.

West Texas Intermediate crude oil futures jumped 2% to $64.58 a barrel.

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