Stock market today: S&P 500 falls as rising Treasury yields blunt tech

Investing.com-- The S&P 500 fell Thursday for the third-straight day as stronger-than-expected economic data dented hopes for deep Federal Reserve rate cuts, pushing Treasury yields higher and keeping a lid on tech stocks.    

At 4:00 p.m. ET (20:00 GMT), the Dow Jones Industrial Average slipped 173 points, or 0.4%, the S&P 500 index dropped 0.5%, and the NASDAQ Composite fell 0.5%. 

The main Wall Street indices have retreated from record highs amid concerns over stretched valuations and uncertainty about the Federal Reserve’s next moves.

Signs of U.S. economic strength

Sentiment has been hit of late by comments from Fed Chair Jerome Powell, who stated earlier in the week that there is “no risk-free path” for the central bank as it weighs risks from both inflation and a cooling labor market.

These cautious statements about the path ahead for interest rates following last week’s 25-basis point cut in borrowing costs have created a degree of uncertainty of the number of reductions the Fed will announce this year.

With this in mind, investors carefully digested the latest weekly jobless claims data as well as a final reading of second-quarter U.S. gross domestic product, released earlier in the session.

First-time applications for unemployment benefits during the week ended on September 20 came in at 218,000, a decrease of 14,000 from the preceding week.

Meanwhile, U.S. gross domestic product, an indicator of growth in the world’s biggest economy, expanded by 3.8% during the April to June period, according to the third and final estimate from the Commerce Department’s Bureau of Economic Analysis. 

A prior estimate had suggested that the U.S. economy grew by 3.3% in the second quarter, after contracting by 0.5% in the opening three months of 2025. The initial estimate showed growth of 3.0%.

Rate projections from the Fed last week suggested that most members were anticipating another half-point worth of cuts at the central bank’s final two meetings of the year in October and December. However, seven of the 19 estimates forecast fewer reductions this year, suggesting the debate could be fierce heading into the next Fed gatherings.

"The implications are obviously hawkish and given how much Fed easing anticipation has contributed to the equity rally of late, stocks will see pressure off the data," analysts at Vital Knowledge said in a note.

All eyes are now on the release of the Fed’s preferred inflation measure, the personal consumption expenditures price index, on Friday.

Government shutdown looms

Investors have also been fretting over a looming partial government shutdown as lawmakers remain locked in a funding standoff, with both chambers struggling to agree on a short-term extension.

The Senate last week rejected a Republican-backed stopgap bill that would have kept the government funded until Nov. 21, citing Democratic opposition over the exclusion of healthcare and Medicaid provisions.

A Politico report late Wednesday said that the White House budget office has instructed federal agencies to prepare layoff plans that could trigger mass firings if a government shutdown occurs next week.

Nvidia steadies after recent stumble; Intel surges

NVIDIA Corporation (NASDAQ:NVDA) rose nearly 1% as investors bought the recent dip in chipmaker  

 Intel Corporation (NASDAQ:INTC) rose after a Bloomberg report said the company approached Apple Inc (NASDAQ:AAPL) about a potential investment in the struggling chipmaker.

Stitchfix, Carmax disappoint on earnigns stage Accenture leads earnings slate

Stitch Fix (NASDAQ:SFIX) fell sharply after the company flagged soft demand, with its active client base falling more than 7% Q3 from a year earlier. 

CarMax Inc (NYSE:KMX) also plunged deep into the red after reporting quartely results that fell well short of analyst estimates on both the top and bottom lines.

Accenture (NYSE:ACN) beat fourth-quarter revenue estimates and unveiled a six‑month, $865 million restructuring to realign its workforce and operations for rising demand in digital and AI services.

Peter Nurse, Ayushman Ojha contributed to this article