Equity Markets Fall Intraday; Yields Rise

02:12 PM EDT, 09/24/2025 (MT Newswires) -- US benchmark equity indexes fell intraday, extending losses from the previous session that followed Federal Reserve Chair Jerome Powell's speech.

The Nasdaq Composite was down 0.5% at 22,461.2 after midday Wednesday, while the S&P 500 fell 0.4% to 6,632.1. The Dow Jones Industrial Average lost 0.3% to 46,172.9. Among sectors, materials saw the biggest drop, while energy paced the gainers.

On Tuesday, the three benchmark indexes declined as Powell said that the central bank's Federal Open Market Committee faces a "challenging situation," with near-term risks to inflation tilted to the upside and those to employment leaning downside.

"To us, it was not a surprise that stocks would slump following (Powell's) 'hawkish' speech yesterday," Macquarie said in a client note. "What was a surprise was that the market hadn't slumped similarly in the days following that same 'hawkish' tone in (Powell's) post-FOMC press conference on September 17."

At that conference last week, Powell characterized the Fed's decision to lower interest rates by 25 basis points as a "risk management cut." The FOMC noted increased downside risks to employment and signaled further monetary policy easing later in 2025.

On Tuesday, Fed Vice Chair for Supervision Michelle Bowman said recent data indicate that policymakers are at a "serious risk of already being behind the curve" in addressing a weakening labor market.

US Treasury yields were higher intraday Wednesday, with the two-year rate rising 2.8 basis points to 3.6% and the 10-year rate adding 2.1 basis points to 4.14%.

In economic news, US new home sales in August hit the highest level since January 2022 even as prices increased, government data showed.

"New home sales blew past expectations in August," Oxford Economics said. "That is at odds with other indicators and likely overstates any improvement in housing activity."

Looking ahead, homes sales are expected to improve as mortgage rates drop and the labor market "regains its footing," the firm said.

The Mortgage Bankers Association said mortgage applications in the US increased last week as the 30-year fixed rate on conforming loans reached the lowest since September 2024.

West Texas Intermediate crude oil was up 2.4% at $64.96 a barrel intraday.

Commercial crude stockpiles in the US decreased by 600,000 barrels last week, the Energy Information Administration said. The consensus was for an increase of about 802,000 barrels in a survey compiled by Bloomberg.

In company news, Freeport-McMoRan (FCX) shares slumped 15%, the steepest decline on the S&P 500. The company said it is notifying commercial counterparties of a force majeure as a result of the Sept. 8 mud rush incident at its Grasberg Block Cave mine in Indonesia that led to the death of at least two people.

Integral Ad Science (IAS) shares soared nearly 21% after the digital ad verification company agreed to be acquired and taken private by Novacap in an all-cash deal worth $1.9 billion.

Thor Industries (THO) logged an unexpected annual increase in its fiscal fourth-quarter earnings, with revenue topping market estimates, while the recreational vehicle maker provided a "prudent" full-year outlook amid macro uncertainties. The company's shares were up 6%.

Gold fell 1.2% to $3,771.80 per troy ounce, while silver dropped 1% to $44.15 per ounce.

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