Equities Drop Intraday as Markets Weigh Fed Governor's Comments

02:30 PM EDT, 10/09/2025 (MT Newswires) -- US benchmark equity indexes were lower intraday as traders parsed remarks by a Federal Reserve governor, while a federal government shutdown dragged on.

The Dow Jones Industrial Average was down 0.5% at 46,360.8 after midday Thursday. The S&P 500 and the Nasdaq Composite fell 0.4% each to 6,726.1 and 22,946.9, respectively, after closing at record-high levels in the previous session. Barring consumer staples, all sectors were in the red intraday, led by materials.

Fed Governor Michael Barr said a "cautious approach" can help policymakers balance the risks to the central bank's dual mandate of price stability and maximum employment amid an uncertain macro backdrop.

"If we see inflation moving further away from our target, then it may be necessary to keep policy at least modestly restrictive for longer," Barr said. "If we see heightened risks in the labor market, then we may need to move more quickly to ease policy."

On Wednesday, minutes from the Fed's September monetary policy meeting showed that most participants indicated it would be appropriate to further lower interest rates later this year amid growing concerns around the labor market. A few policymakers saw merit in holding interest rates steady last month amid renewed inflation concerns, according to the document.

Markets widely expect the Federal Open Market Committee to deliver a 25-basis-point rate cut later this month, following a similar move in September, according to the CME FedWatch tool.

US Treasury yields were higher intraday, with the 10-year rate rising 1.5 basis point to 4.15% and the two-year rate adding 1.3 basis points to 3.6%.

The government shutdown entered its ninth day, delaying the weekly jobless claims report that was due on Thursday. The Senate failed to advance two funding bills on Thursday, one from Democrats and another from Republicans, CNN reported.

West Texas Intermediate crude oil was down 1.9% at $61.37 a barrel intraday. D.A. Davidson attributed falling oil prices to expectations of "easing" Middle East tensions.

In company news, Turkish Airlines could move a recent order for Boeing (BA) 737 Max aircraft to Airbus if negotiations with engine supplier CFM fail to advance, Reuters reported, citing Turkish Airlines Chair Ahmet Bolat. Boeing (BA) shares were down 3.4% intraday, the steepest drop on the Dow.

AZZ (AZZ) shares declined 2.8%. The metal and coil coatings company's fiscal second-quarter results came in short of market estimates late Wednesday.

Delta Air Lines (DAL) issued an upbeat fourth-quarter earnings outlook Thursday amid improving sales trends, while the air carrier's results in the prior-three month period topped market estimates. The company's shares were up 5% intraday, the second-best S&P 500 performer.

PepsiCo (PEP) followed Delta Air on the S&P 500, up 3.6%, after the beverage and snacks giant improved its full-year earnings outlook amid easing foreign-exchange headwinds. PepsiCo (PEP) posted better-than-expected fiscal third-quarter results.

Gold was down 2.6% at $3,966 per troy ounce, while silver decreased 3.5% to $47.28 per ounce.

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