US Equity Indexes Mixed After Fed's Rate Cut

04:26 PM EDT, 09/17/2025 (MT Newswires) -- US equity indexes were mixed after the close on Wednesday after the Federal Reserve lowered the federal funds rate target range by 25 basis points to 4% to 4.25% in line with market expectations.

The Nasdaq Composite slumped 0.3% to 22,261.3, with the S&P 500 down 0.1% to 6,600.3, and the Dow Jones Industrial Average 0.6% higher at 46,018.3. The financials sector led the gainers, while technology led the decliners.

The Federal Open Market Committee highlighted in a statement that a slump in job gains, an uptick in the unemployment rate, and elevated inflation suggest economic activity growth moderated in H1.

"In the near term, risks to inflation are tilted to the upside and risks to employment to the downside -- a challenging situation," Fed Chair Jerome Powell said in a press conference after the FOMC statement. "The marked slowing in both the supply of and demand for workers is unusual. In this less dynamic and somewhat softer labor market, the downside risks to employment appear to have risen."

The CBOE Volatility Index fell 4.2% to 15.66.

Most Treasury yields rose, with the 10-year yield up 4.2 basis points to 4.06% and the two-year rate 3.5 basis points higher at 3.54%.

In economic news, the annual rate of homebuilding permits in August was over 1.3 million, down 3.7% from around 1.4 million in July, and lower than the 1.4 million expected in a survey compiled by Bloomberg. According to the US Census Bureau report, housing starts in August were at an adjusted annual rate of over 1.3 million, down 8.5% from the over 1.4 million in July, and under the 1.4 million expected in a Bloomberg-compiled survey.

In company news, Uber Technologies (UBER) shares fell 4.2% in recent trading after Lyft (LYFT) entered a partnership with Alphabet's (GOOG/GOOGL) Waymo to bring Waymo's autonomous vehicle ridesharing to Nashville, Tennessee, in 2026. Wedbush noted that Waymo's partnerships over the last year, including the latest one with Lyft (LYFT), signal Uber (UBER) has lost its position as the exclusive partner for Waymo expansion. Uber (UBER) earlier held exclusivity over Waymo distribution in Atlanta and Austin, according to the brokerage.

Workday (WDAY) shares rose 7.1% after the company authorized a repurchase of up to $4 billion of additional shares. Simultaneously, activist investor Elliott Investment Management unveiled a $2 billion stake in the company and endorsed the leadership. The investor said the company made "substantial progress" in improving performance and management has positioned Workday "as a unique software franchise with industry-leading growth potential."

Gold futures fell 0.9% to $3,691.

West Texas Intermediate crude oil futures declined by 0.8% to $64 a barrel.

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