International

Trader Anthony Confusione works on the floor of the New York Stock Exchange, Wednesday, Sept. 17, 2025.

AP Photo/Richard Drew

Wall Street drifts lower as its big rally loses steam

By The Canadian Press

Published 1:11 PDT, Wed September 24, 2025

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NEW YORK (AP) — U.S. stocks drifted lower, easing major indexes a bit further below the all-time highs they set at the beginning of the week. The S&P 500 fell 0.3 per cent Wednesday. The Dow Jones Industrial Average lost 0.4 per cent, and the Nasdaq composite slipped 0.3 per cent. Micron Technology fell to give back some of its huge gain for the year even though it reported a better profit than expected. Homebuilders rose following a strong report on sales of new homes. Treasury yields ticked higher in the bond market. Stocks have been rallying furiously in recent months since hitting a bottom in April.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

NEW YORK (AP) — U.S. stock indexes are drifting lower on Wednesday as Wall Street takes a pause from what seemed like a relentless rally.

The S&P 500 fell 0.3 per cent in afternoon trading, coming off its first loss in four days. The Dow Jones Industrial Average was down 85 points, or 0.2 per cent, as of 1:18 p.m. Eastern time, and the Nasdaq composite was 0.4 per cent lower. All three are still near their all-time highs, which were set on Monday.

It's a slowdown following the blistering run for the U.S. stock market since it hit a low in April, fueled by hopes that President Donald Trump’s tariffs won’t derail global trade and that the Federal Reserve will cut interest rates several times to boost the U.S. economy. The big rally, though, has raised concerns that stock prices have shot too high and become too expensive, particularly if the Fed does not deliver as many cuts to rates as traders expect.

Demonstrating the weight of high expectations, Micron Technology's stock fell 4.3 per cent even though it reported a better profit and revenue for the latest quarter than analysts expected. The maker of computer memory also gave a forecast for profit in the current quarter that blew past analysts' expectations.

Typically, such a performance would send a stock higher. But Micron’s stock came into the day with an atypical, stunning gain of 97.7 per cent for the year so far.

Freeport-McMoRan sank 14.8 per cent for one of the market's larger losses after the miner said it expects sales of copper to be 4 per cent lower in the third quarter than it had earlier forecast. It also said sales of gold will likely be roughly 6 per cent lower than earlier expected.

On the winning side of Wall Street was Lithium Americas. It soared 98.3 per cent following reports that the U.S. government is considering taking an ownership stake in the Canadian company, which is developing a lithium project in Nevada with General Motors.

Lithium Americas, based in Vancouver, said it’s in talks with the U.S. Department of Energy and GM about drawing on a previously announced $2.26 billion loan from the government. The Energy Department is making “incremental requests” to add more conditions before Lithium Americas can make its first draw, among other things, the company said.

Under Trump, the U.S. government has already taken a 10 per cent ownership stake in Intel, the struggling computer chip company.

Homebuilders also rose after a report said U.S. sales of new homes were stronger in August than economists had forecast and unexpectedly accelerated.

Lennar climbed 2.5 per cent, PulteGroup rose 1.4 per cent and D.R. Horton added 1.1 per cent.

In stock markets abroad, indexes were mixed in Europe and Asia. Hong Kong’s Hang Seng jumped 1.4 per cent, and France’s CAC 40 fell 0.6 per cent for two of the bigger moves.

In the bond market, the yield on the 10-year Treasury edged up to 4.14 per cent from 4.12 per cent late Tuesday.

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AP Business Writers Matt Ott and Yuri Kageyama contributed.

– Stan Choe, The Associated Press