Equities Rise Intraday as Markets Weigh Fed Officials' Comments, Macro Data

02:14 PM EDT, 09/26/2025 (MT Newswires) -- US benchmark equity indexes were higher intraday as traders assessed remarks by two Federal Reserve officials and the latest macro data.

The Dow Jones Industrial Average was up 0.8% at 46,310.4 after midday Friday, while the S&P 500 rose 0.5% to 6,640.1. The Nasdaq Composite advanced 0.3% to 22,451. Barring consumer staples, all sectors were in the green, led by energy.

Richmond Fed President Tom Barkin said the potential downside in the labor market is expected to be limited, while a cautious spending approach by consumers should "limit the magnitude" of projected inflation.

The decision by the central bank's Federal Open Market Committee last week to cut interest rates by 25 basis points "should help support the labor market while maintaining pressure on inflation," Barkin said.

Separately, Fed Vice Chair for Supervision Michelle Bowman said the FOMC needs to "act decisively and proactively to address decreasing labor market dynamism and emerging signs of fragility."

Bowman advocated a forward-looking approach for the FOMC to "avoid falling behind the curve and then having to implement abrupt and dramatic" measures.

Earlier this week, Fed Chair Jerome Powell said the FOMC faces a "challenging situation," with near-term risks to inflation tilted to the upside and those to employment leaning downside.

US Treasury yields were mixed intraday Friday, with the 10-year rate rising one basis point to 4.18% and the two-year rate falling two basis points to 3.64%.

In economic news, US consumer spending grew in August at the fastest pace since March, while the Fed's preferred core inflation metric held steady, according to the Bureau of Economic Analysis. The headline personal consumption expenditure price index accelerated both annually and sequentially.

"The PCE price indexes show inflation creeping higher as tariffs push up a range of goods prices," Oxford Economics said. "We estimate around two thirds of the burden of tariffs have been passed through to consumers, though the range of new sectoral tariffs announced overnight mean further price pressures are likely on the way."

On Thursday, President Donald Trump said the US will impose tariffs of 25% on heavy trucks and 50% on kitchen cabinets and bathroom vanities, effective Wednesday. Additionally, the US will charge 100% levies on branded or patented pharmaceutical products.

US consumer sentiment dropped in September amid concerns regarding the prospects of higher inflation and a labor market deterioration, according to a survey by the University of Michigan.

"Consumers continue to express frustration over the persistence of high prices, with 44% spontaneously mentioning that high prices are eroding their personal finances, the highest reading in a year," Surveys of Consumers Director Joanne Hsu said.

West Texas Intermediate crude oil was up 0.9% at $65.54 a barrel intraday.

In company news, Boeing (BA) shares rose 4.2%, the top gainer on the Dow and among the best on the S&P 500, after the US Federal Aviation Administration said the plane maker will regain authority to issue airworthiness certificates for some of its 737 Max and 787 jets, starting Monday.

Tesla's (TSLA) third-quarter deliveries are likely to top market estimates amid stabilizing global demand as the electric vehicle maker takes major steps in advancing its artificial intelligence push heading into 2026, Wedbush Securities said. Tesla shares were up 2.3%.

Costco Wholesale (COST) shares fell 2.7%, among the steepest declines on the S&P 500. Late Thursday, the warehouse chain logged fiscal fourth-quarter earnings and revenue above market expectations, but comparable sales missed Wall Street's estimates.

Gold was up 1.1% at $3,812 per troy ounce, while silver jumped 3.8% to $46.85 per ounce.

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