US close: Stocks mixed as Fed rate cut sparks volatile swings

17th Sep 2025 21:48

(Sharecast News) - Wall Street stocks finished in a mixed fashion on Wednesday after an interest-rate cut and comments from the Federal Reserve sparked a volatile end to the session.

"US stocks have whipsawed around in the aftermath of the meeting, up one minute and down the next. However, we do not see this decision as being an impediment to future stock market gains, even if it triggers short-term stock market volatility," said Kathleen Brooks, research director at XTB.

Despite a brief swing into the red following the Fed meeting, the Dow ended the day 0.6% higher to finish just short of last week's record high. Meanwhile the S&P 500 fell 0.1% and the Nasdaq slipped 0.3%, with both dropping sharply before paring losses by the closing bell.

In economic data, two leading economic indicators for the US housing market came in well under forecasts, pointing to a slump in activity for new residential construction. Building permits - a closely watched gauge of future construction activity - dropped 3.7% to 1.312m in August, hitting their lowest monthly level since May 2020, while housing starts sank 8.5% to 1.307m, teetering at close to its lowest level in five years.

All eyes on the Fed

As expected, the US central bank cut the Federal Funds Rate by 25 basis points to a range of 4.0-4.25%, with one lone policymaker - Donald Trump's newest FOMC appointee, Stephen Miran - calling for a 50bp cut.

The Fed said to expect further rate reductions over the next two years, with the market already pricing in two further 25bp cuts before the end of 2025.

In his post-meeting press conference, Fed chair Jerome Powell described the rate cut as "risk management", explaining that employment had now "clearly" worsened. Inflation however remained "somewhat elevated".

"It was always hard for this meeting to deliver a dovish surprise, which is why the market moves have been small so far. This meeting delivered exactly what the market expected: a succession of future rate cuts, most of them front-loaded for the rest of this year," Brooks said following the announcement.

The yield on a 10-year US Treasury was up 5.4bp at a two-week high of 4.089%, while the US Dollar Index rose 0.4% to 97.06.

Market movers

Nvidia was heading lower on the back of reports that Chinese regulators were banning domestic tech giants from purchasing Nvidia's AI chips. Broadcom fell in sympathy.

US-listed shares of FMCG group Unilever were rising despite the news that the co-founder of Ben & Jerry's (which it owns) has quit. Jerry Greenfield resigned citing interference from the parent company over the brand's social activism and criticism of Israel's killing of Palestinian civilians.

HR tech firm Workday was a high riser after activist outfit Elliott Management revealed on Tuesday that it had built a stake of more than $2bn in the company.

Baidu also surged after Arete Research Services upped its rating on the US-listed shares of the Chinese tech outfit from 'sell' to 'buy'.

Meanwhile, shares in StubHub fell 6% following the ticketing group's IPO in New York.

Dow Jones - Risers

American Express Co. (AXP) $335.90 2.74%

Caterpillar Inc. (CAT) $450.01 2.27%

Visa Inc. (V) $346.03 1.81%

Procter & Gamble Co. (PG) $160.15 1.44%

Salesforce.Com Inc. (CRM) $242.21 1.21%

Coca-Cola Co. (KO) $67.04 1.21%

Travelers Company Inc. (TRV) $274.88 1.13%

Goldman Sachs Group Inc. (GS) $793.73 1.11%

Verizon Communications Inc. (VZ) $44.16 1.07%

Cisco Systems Inc. (CSCO) $67.72 0.95%

Dow Jones - Fallers

Microsoft Corp. (MSFT) $510.02 -1.25%

Home Depot Inc. (HD) $417.00 -1.06%

3M Co. (MMM) $154.99 -0.86%

Intel Corp. (INTC) $24.90 -0.74%

Amgen Inc. (AMGN) $274.71 -0.65%

Nike Inc. (NKE) $72.32 -0.60%

Boeing Co. (BA) $214.63 -0.18%

S&P 500 - Risers

Hologic Inc. (HOLX) $68.20 6.65%

Nektar Therapeutics (NKTR) $51.07 4.53%

Apache Corp. (APA) $24.16 3.80%

Kohls Corp. (KSS) $17.24 3.54%

Monster Beverage Corp (MNST) $66.52 3.36%

Charter Communications Inc. (CHTR) $268.02 3.08%

Diamondback Energy Inc. (FANG) $140.47 2.95%

Paypal Holdings Inc (PYPL) $68.62 2.93%

Microchip Technology Inc. (MCHP) $65.78 2.89%

Applied Materials Inc. (AMAT) $178.13 2.87%

S&P 500 - Fallers

Sl Green Realty Corp. (SLG) $61.66 -6.01%

Broadcom Inc. (AVGO) $346.17 -4.59%

Helmerich & Payne Inc. (HP) $20.84 -4.27%

Whirlpool Corp. (WHR) $86.44 -4.26%

Mohawk Inds Inc. (MHK) $131.48 -4.01%

Nvidia Corp. (NVDA) $170.29 -3.74%

Lamb Weston Holdings, Inc. (LW) $55.63 -3.62%

Boston Properties Inc. (BXP) $76.49 -3.17%

National Oilwell Varco Inc. (NOV) $12.90 -2.93%

United Rentals Inc. (URI) $931.01 -2.88%

Nasdaq 100 - Risers

Baidu Inc. (BIDU) $137.83 16.77%

Hologic Inc. (HOLX) $68.20 6.65%

Workday, Inc. (WDAY) $234.88 5.94%

JD.com, Inc. (JD) $35.24 5.26%

Qvc Group Inc Series A (QVCGA) $12.97 4.94%

Mercadolibre Inc. (MELI) $2,446.32 4.12%

Monster Beverage Corp (MNST) $66.52 3.36%

Charter Communications Inc. (CHTR) $268.02 3.08%

Paypal Holdings Inc (PYPL) $68.62 2.93%

Microchip Technology Inc. (MCHP) $65.78 2.89%

Nasdaq 100 - Fallers

Broadcom Inc. (AVGO) $346.17 -4.59%

Nvidia Corp. (NVDA) $170.29 -3.74%

Hasbro Inc (HAS) $73.91 -2.77%

Verisk Analytics Inc. (VRSK) $249.69 -2.39%

Henry Schein Inc. (HSIC) $67.37 -2.37%

O'Reilly Automotive Inc. (ORLY) $104.55 -1.98%

J.B. Hunt Transport Services Inc. (JBHT) $134.52 -1.86%

Align Technology Inc. (ALGN) $129.44 -1.86%

Vertex Pharmaceuticals Inc. (VRTX) $387.15 -1.57%

Western Digital Corp. (WDC) $100.94 -1.57%