US Equity Indexes Drop as Investors Weigh Powell's No-Comment on Fed Minutes; Gold Futures Slide

01:43 PM EDT, 10/09/2025 (MT Newswires) -- US equity indexes declined along with gold futures after Federal Reserve Chair Jerome Powell sidestepped an opportunity to comment on monetary policy following the release of divisive September meeting minutes, while a ceasefire was agreed between Israel and Hamas.

The Nasdaq Composite fell 0.5% to 22,937.1, with the S&P 500 down 0.5% to 6,722.2 and the Dow Jones Industrial Average 0.6% lower at 46,339.5. All sectors except consumer staples and healthcare fell intraday, with industrials and materials emerging as the steepest decliners.

Powell offered no further insights on interest rates in a recorded video that addressed a community bank conference in Washington on Thursday. Late on Wednesday, the minutes from the Sept. 16-17 Fed meeting showed division among policymakers on the path and pace of rate cuts, even though most rate-setters were open to additional policy easing.

The probability of the Fed cutting interest rates by an aggregate of 50 basis points by the end of this year, 25 basis points each in October and December, retreated to 80% as of Thursday afternoon, from 90% a week earlier, according to the CME Group's FedWatch Tool.

Based on the meeting minutes, Fed officials were not "very dovish" in mid-September, according to a note from the Macquarie Group. And since then, non-official inflation indicators have not pointed to inflation easing, but rather to prices turning hotter, Thierry Wizman, global foreign-exchange and rates strategist, said in the note.

"With stocks rallying, gold spiking, and corporate credit spreads remaining tight, the OIS-implied probability of a Fed cut on October 29 seems to be too high. The right ballpark should be a 50-75% probability," Wizman said.

Meanwhile, Israel and Hamas reportedly signed a ceasefire and hostage release deal that is expected to take effect after Tel Aviv ratifies it. The truce is part of efforts to end the war in Gaza.

Gold futures dropped 2.2% to $3,978.70, retreating from an all-time high. Silver futures slumped 3.6% to $47.26, also declining from a record.

Most US Treasury yields rose, with the two-year yield up 1.3 basis points to 3.6% and the 10-year rate 1.3 basis points higher at 4.14%.

The ICE US Dollar Index, which measures the greenback against a basket of currencies, advanced 0.5% to 99.44.

In company news, Delta Air Lines (DAL) issued an upbeat Q4 earnings outlook amid improving sales trends, after results for the prior three-month period topped market estimates. Shares jumped 4.3% intraday, among the top gainers on the S&P 500.

PepsiCo (PEP) reported better-than-expected fiscal Q3 results and set out an improved full-year outlook for earnings amid easing foreign-exchange headwinds. Its shares were the top outperformer on the Nasdaq with an intraday gain of 3.5%.

West Texas Intermediate crude oil futures sank 1.8% to $61.41 a barrel.

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