US close: Stocks fall as strong data clouds rate cut hopes
By Benjamin Chiou
Date: Thursday 25 Sep 2025
(Sharecast News) - A barrage of better-than-expected data drove the third straight fall for US stocks on Thursday, as signs of a resilient economy clouded the outlook for monetary policy.
Adding to the uncertainty were comments from two Federal Reserve members - Kansas City Fed President Jeff Schmid and Chicago Fed President Austan Goolsbee - who expressed caution regarding future monetary easing. Schmid said that the current policy stance "is the right place to be", while Goolsbee said he was "uneasy with front-loading too many rate cuts".
The Dow fell 0.4% while the S&P 500 and Nasdaq both slipped 0.5%, as all three indices continued their retreat from the respective record highs reached on Monday.
Statistics for GDP, jobless claims, durable goods and existing home sales all came in ahead of forecasts on Thursday, raising concerns that the Fed may proceed with caution before cutting rates further to stimulate the economy. The data prompted a rise in the yield on a 10-year US Treasury to a three-week high of 4.168%.
"The bond market is reacting to the better-than-expected US GDP data, as it leads to questions about whether the Fed needs to cut rates further, especially since inflation has picked up in Q3," said Kathleen Brooks, research director at XTB.
"The strength of the US economic data has led to a mini recalibration of US interest rate expectations. On Wednesday, the market was pricing in a 90%+ chance of a rate cut in October, that is now 83%. Likewise, expectations for a December cut have also been scaled back."
Traders also continued to monitor political developments in Washington, with the threat of a government shutdown adding to the broader risk backdrop.
Data surprises to the upside
US GDP rose at an annualised rate of 3.8% in the second quarter, up from the prior estimate of 3.3%, with the upgrade driven by stronger consumer spending and a decline in imports. Economists had expected no change to the initial reading.
Durable goods orders grew at a month-on-month pace of 2.9% in August to reach $312.06bn. Economists had anticipated a dip of 0.5% over the month, while July's drop in orders was revised up from -2.8% to -2.7%.
Jobless claims fell 14,000 to 218,000 last week, coming in well below the consensus forecast of 235,000. This marked the lowest level in two months, easing fears of a sharp downturn in the labour market following a string of downbeat jobs reports.
Existing home sales were down 0.2% in August at a seasonally adjusted annual rate of 4.0m, slipping from 4.01m in July but ahead of the 3.96m expected by analysts. Compared with last August, existing home sales were 1.8% higher.
Lastly, the US goods and services trade deficit narrowed sharply in August, falling 16.8% month-on-month to $85.5bn, coming in below analysts' expectations, as a steep drop in imports more than offset a modest decline in exports.
Market movers
Intel jumped 9% following reports that the chipmaker had approached Apple regarding a potential investment, with shares in the latter up 2%.
According to Bloomberg, Intel has sought backing from the iPhone maker as it looks to bolster its position in the semiconductor space. However, the report did not specify the size or structure of the proposed investment, nor whether Apple had responded to the approach.
US-listed shares in Birkenstock fell even after the German sandal maker said full-year earnings were on track to beat expectations. As a result, full-year revenues are now set to be "at least" €2.09bn, ahead of expectations for annual growth of between 15% and 17%.
Oracle slid as ongoing concerns about lofty valuations in the AI sector continued to hit sentiment. The fall was also driven by Rothschild & Co Redburn which started coverage of the stock with a 'sell' recommendation.
Dow Jones - Risers
Intel Corp. (INTC) $33.99 8.87%
International Business Machines Corporation (CDI) (IBM) $279.97 5.20%
Apple Inc. (AAPL) $256.87 1.81%
Chevron Corp. (CVX) $160.51 0.97%
Cisco Systems Inc. (CSCO) $67.85 0.79%
Johnson & Johnson (JNJ) $177.12 0.59%
Verizon Communications Inc. (VZ) $43.31 0.39%
Walmart Inc. (WMT) $103.24 0.31%
Goldman Sachs Group Inc. (GS) $793.19 0.29%
JP Morgan Chase & Co. (JPM) $313.33 0.01%
Dow Jones - Fallers
Dow Chemical Co. (DOW) $22.39 -4.02%
Amgen Inc. (AMGN) $271.18 -2.88%
Nike Inc. (NKE) $69.33 -2.78%
Merck & Co. Inc. (MRK) $77.89 -2.60%
Salesforce.Com Inc. (CRM) $240.64 -2.01%
Unitedhealth Group Inc. (UNH) $347.45 -1.78%
Caterpillar Inc. (CAT) $463.87 -1.29%
Visa Inc. (V) $336.18 -1.11%
3M Co. (MMM) $152.73 -1.02%
Travelers Company Inc. (TRV) $275.38 -0.88%
S&P 500 - Risers
Intel Corp. (INTC) $33.99 8.87%
International Business Machines Corporation (CDI) (IBM) $279.97 5.20%
CenturyLink Inc. (LUMN) $5.91 5.12%
Synopsys Inc. (SNPS) $487.20 4.08%
Albemarle Corp. (ALB) $85.32 3.98%
Charter Communications Inc. (CHTR) $270.57 2.73%
Charles Schwab Corp. (SCHW) $94.49 2.61%
Valero Energy Corp. (VLO) $175.29 2.10%
L3Harris Technologies Inc. (LHX) $288.75 1.85%
Phillips 66 Common Stock (PSX) $139.04 1.82%
S&P 500 - Fallers
Carmax Inc. (KMX) $46.09 -20.07%
Nektar Therapeutics (NKTR) $55.62 -7.81%
Kohls Corp. (KSS) $16.18 -6.25%
Freeport-McMoRan Inc (FCX) $35.59 -6.19%
Celanese Corp. (CE) $40.48 -5.76%
Oracle Corp. (ORCL) $291.89 -5.55%
Teleflex Inc. (TFX) $116.88 -5.10%
Tapestry Inc. (TPR) $106.90 -4.96%
Dxc Technology Company (DXC) $13.17 -4.81%
LyondellBasell Industries (LYB) $49.45 -4.65%
Nasdaq 100 - Risers
Intel Corp. (INTC) $33.99 8.87%
Synopsys Inc. (SNPS) $487.20 4.08%
Charter Communications Inc. (CHTR) $270.57 2.73%
Baidu Inc. (BIDU) $135.40 1.87%
Apple Inc. (AAPL) $256.87 1.81%
Vertex Pharmaceuticals Inc. (VRTX) $381.87 1.39%
O'Reilly Automotive Inc. (ORLY) $104.56 1.05%
Cintas Corp. (CTAS) $202.05 1.00%
JD.com, Inc. (JD) $35.17 0.98%
Booking Holdings Inc. (BKNG) $5,575.73 0.91%
Nasdaq 100 - Fallers
Qvc Group Inc Series A (QVCGA) $12.63 -7.00%
American Airlines Group (AAL) $11.39 -4.61%
Tesla Inc (TSLA) $423.39 -4.38%
DENTSPLY Sirona Inc. (XRAY) $12.37 -3.89%
Regeneron Pharmaceuticals Inc. (REGN) $555.57 -3.71%
Kraft Heinz Co. (KHC) $25.81 -3.48%
Henry Schein Inc. (HSIC) $65.64 -3.11%
Micron Technology Inc. (MU) $156.83 -3.02%
Incyte Corp. (INCY) $81.66 -2.97%
Amgen Inc. (AMGN) $271.18 -2.88%
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