Dow Falls From Record Level as Powell Dampens December Rate Cut Bets

05:16 PM EDT, 10/29/2025 (MT Newswires) -- The Dow Jones Industrial Average fell from Tuesday's record high level after Federal Reserve Jerome Powell on Wednesday indicated uncertainty around an interest rate cut in December.

The Dow dropped 0.2% to 47,632, while the S&P 500 ended just below the flatline at 6,890.6. Both snapped a four-day run of gains that pushed the indexes to fresh closing records on Tuesday.

The Nasdaq Composite rose 0.6% to 23,958.5, notching its fourth consecutive all-time high.

Among sectors, real estate saw the steepest decline, while technology paced the gainers.

The Fed lowered its benchmark lending rate by 25 basis points Wednesday, marking a second-consecutive quarter-percentage-point cut as it reiterated concerns regarding the labor market.

Two officials dissented from the majority, with recently appointed Fed Governor Stephen Miran preferring a 50-basis-point cut and Kansas City Fed President Jeffrey Schmid voting in favor of leaving rates unchanged, according to the Federal Open Market Committee statement.

Powell, however, stressed that a rate cut at the FOMC's next meeting in December is not guaranteed.

"In the committee's discussions at this meeting, there were strongly differing views about how to proceed in December," he said in his opening remarks at a post-meeting press conference. "A further reduction in the policy rate at the December meeting is not a forgone conclusion -- far from it."

Jefferies Chief US Economist Thomas Simons said that "risk assets were not particularly happy to hear that comment."

"Though we would point out that Powell always says that policy is 'not on a preset path', and likely has never said that anything is a foregone conclusion," Simons said in a note e-mailed to MT Newswires.

There was "a growing chorus" among Fed officials to "at least wait a cycle" before cutting again, Powell later said, according to a CNBC report.

US Treasury yields were higher, with the two-year rate climbing 11.2 basis points to 3.61% and 10-year rate jumping 9.8 basis points to 4.08%.

Meanwhile, traders remained focused on quarterly financial results. Tech giants Microsoft (MSFT) , Google (GOOG) parent Alphabet (GOOG, GOOGL) and Facebook parent Meta Platforms (META) released results after the closing bell Wednesday.

Apple (AAPL) and Amazon.com (AMZN) are slated to report Thursday.

Nvidia (NVDA) shares climbed 3%, helping the US chipmaking giant's market capitalization cross $5 trillion, the first company to achieve that milestone. Nvidia (NVDA) was the second-best performer on the Dow.

Caterpillar's (CAT) third-quarter results topped market estimates amid revenue gains across three of its main segments. The heavy equipment manufacturer's shares surged nearly 12%, the top gainer on the Dow and among the best S&P 500 performers.

Verizon Communications' (VZ) third-quarter profit unexpectedly rose even as a slowdown in postpaid phone subscriber growth pressured its top-line. Verizon shares were up 2.3%, the third biggest gainer on the Dow.

Boeing (BA) saw the steepest decline on the Dow, down 4.4%, after the plane maker booked a $4.9 billion charge tied to 777X program delays, bloating its third-quarter loss.

West Texas Intermediate crude oil was up 0.4% at $60.40 a barrel in Wednesday late-afternoon trade.

US President Donald Trump is scheduled to meet with his Chinese counterpart, Xi Jinping, in South Korea Thursday. The two leaders expect to achieve "a good deal" for their countries, Reuters reported Wednesday, citing Trump.

Improving US-China sentiment is partly driving oil prices higher, D.A. Davidson said in a report on Wednesday.

In economic news, pending home sales in the US were flat on a monthly basis in September even as mortgage rates reached a one-year low, the National Association of Realtors said.

"Looking ahead, mortgage rates are trending toward three-year lows, which should further improve affordability, though the (ongoing US federal) government shutdown could temporarily slow home sales activity," NAR Chief Economist Lawrence Yun said.

The federal government shutdown, which has now entered its 29th day, could cost the US economy as much as $14 billion by the end of 2026 if it stretches to eight weeks, based on estimates released Wednesday by the Congressional Budget Office.

The Senate was not scheduled to vote on a House-passed funding bill on Wednesday, CBS News reported. Senators will next vote Thursday, Senate Majority Leader John Thune reportedly said.

Gold was down 0.7% at $3,955.20 per troy ounce, while silver rose 0.1% to $47.39 per ounce.

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