U.S. equity markets are exhibiting a mixed performance in afternoon trading on Wednesday, September 17, 2025, as investors remain in a holding pattern ahead of the highly anticipated interest rate decision from the Federal Reserve. The central bank's announcement, expected later this afternoon, is widely forecast to deliver the first rate cut of the year, a move that has been priced into the market for weeks. This cautious sentiment is shaping trading activity across major indexes and individual stocks, with some sectors showing resilience while others face headwinds.
Major Index Performance
As of early afternoon, the Dow Jones Industrial Average (DJIA) is demonstrating positive momentum, advancing around 0.5% to 0.7%. This puts the blue-chip index in the vicinity of 46,000 points, with some reports indicating gains of over 300 points. This upward movement in the Dow contrasts with the broader market's more subdued performance, suggesting a rotational play or strength in its constituent companies.
In contrast, the S&P 500 (SPX) is trading slightly lower, hovering near its record high achieved on Tuesday. The benchmark index is down approximately 0.1% to 0.2%, with values drifting around 6,600 points. The S&P 500 had touched a fresh high of 6,624 points just yesterday, underscoring the significant run-up the market has experienced leading into today's Fed meeting.
The technology-heavy Nasdaq Composite (IXIC) is experiencing the most pressure among the major indexes, declining between 0.4% and 0.6% in afternoon trading. This downturn in tech stocks is largely attributed to specific corporate news impacting key players in the semiconductor space. Meanwhile, the Russell 2000 (RUT), which tracks small-cap companies, is showing relative strength, posting gains of around 0.5% to 1%. This outperformance by smaller companies could signal investor confidence in broader economic recovery, particularly if a rate cut materializes.
Key Upcoming Market Events
The financial world's eyes are firmly fixed on the Federal Reserve's Federal Open Market Committee (FOMC) meeting, which concludes this afternoon. The overwhelming consensus among economists and traders is that the Fed will announce a 25-basis-point (0.25%) reduction in the federal funds rate, bringing the target range to 4.00%-4.25%. While the rate cut itself is largely anticipated, the market's focus will quickly shift to the accompanying statement and Fed Chair Jerome Powell's press conference. Investors are eager for insights into the central bank's "Dot Plot," which outlines policymakers' projections for future rate movements, and any hints regarding the pace and extent of further easing. Historical data suggests that the S&P 500 has often seen mixed to negative returns in the 30 trading sessions following a Fed rate cut, adding a layer of caution to today's optimism.
Beyond the Fed, earlier economic data releases provided a mixed picture. The Commerce Department reported that retail sales for August rose by 0.6%, surpassing analysts' expectations of a 0.3% increase. However, housing starts for August fell by 8.5% month-over-month, and building permits unexpectedly declined by 3.7% month-over-month, indicating some weakness in the housing sector. These data points will likely factor into the Fed's assessment of the economy's health.
In terms of corporate earnings, General Mills (GIS) reported its fiscal Q1 results this morning, beating analyst expectations for profit. Manchester United (MANU) also released its earnings report today. Looking ahead, Cracker Barrel Old Country Store (CBRL) and Sangoma Technologies (SANG) are among the companies slated to report their quarterly figures after the market closes today.
Major Stock News and Developments
Individual stock movements are reflecting a blend of company-specific news and broader market sentiment.
Nvidia (NVDA) shares are notably under pressure, trading down approximately 2% to 3% in afternoon action. This decline follows reports from The Financial Times indicating that China's internet regulator has instructed some of the country's largest tech companies to halt purchases of AI chips from Nvidia. This development highlights ongoing geopolitical tensions and their potential impact on the highly valued semiconductor industry. Other tech giants like Broadcom (AVGO) and Palantir Technologies (PLTR) are also seeing declines, down 4% and 3.5% respectively, contributing to the Nasdaq's struggle.
In other corporate news, Eli Lilly (LLY) was downgraded to a "hold" rating by Berenberg, with an $830 price target. The analyst cited a plateau in the obesity market's upgrade cycle and high consensus expectations for the company's franchise. Conversely, Kroger (KR) received an upgrade to "buy" from Roth/MKM, with a price target of $75, suggesting optimism for the grocery retailer.
Workday (WDAY) is a standout performer, with its stock jumping nearly 7% to 7.5% after activist investor Elliott Investment Management disclosed a stake of over $2 billion in the HR software firm and expressed support for its management. This news often signals potential for strategic changes or increased shareholder value.
The online ticket marketplace StubHub (STUB) made its debut on the New York Stock Exchange today, pricing its initial public offering at $23.50 per share. After opening higher, shares were trading down around 4% in the afternoon, indicating a mixed reception for one of 2025's larger IPOs.
Among the "Magnificent Seven" tech stocks, Apple (AAPL) has seen its shares stall, down 5% year-to-date as of Tuesday's close, with analysts attributing this to a perceived lag in the AI race. Amazon (AMZN) is also down over the past five trading sessions, though its year-to-date gain remains positive at 6.28%. Meta Platforms (META) slipped ahead of its two-day developers conference, where new AI-powered glasses are expected to be showcased.
Finally, Oracle (ORCL) saw its shares gain 1.5% on reports that it is part of a consortium aiming to keep the Chinese short video app TikTok operating in the United States. Chipotle Mexican Grill (CMG) shares increased by 1.9% after the company approved an additional $500 million for share buybacks. On the downside, ADTRAN Holdings (ADTN) plummeted 15.1% following the announcement of a $150 million convertible senior notes offering, and Dave & Buster's Entertainment (PLAY) tumbled 16.7% after reporting disappointing second-quarter fiscal 2025 earnings. Lyft (LYFT) saw a significant jump of 14.3% after announcing a partnership with Waymo to bring autonomous ride-hailing to Nashville.
As the afternoon progresses, all eyes remain on the Federal Reserve's impending announcement, which is expected to set the tone for market activity not just for the remainder of the day, but potentially for the weeks and months to come.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.