04:47 PM EDT, 09/12/2025 (MT Newswires) -- US equity indexes closed mixed, with the Nasdaq Composite hitting an all-time high amid gains in the consumer discretionary and technology sectors, as the outlook remains dovish for the Fed's monetary policy meeting next week.

The Nasdaq Composite was up 0.4% to 22,141.10, after scaling a peak of 22,182.34 intraday. However, the S&P 500 slipped less than 0.1% to 6,584.29, and the Dow Jones Industrial Average fell 0.6% to 45,834.22.

Consumer discretionary, technology, and utilities were among the gainers intraday. Materials and health care led the decliners.

Ahead of the Fed's rate-setting meeting ending Sept. 17, markets are pricing a zero percent chance of the central bank leaving interest rates unchanged, implying policy easing will resume this month, the FedWatch Tool showed Friday. Further, there is a 74% probability that the Fed will lower interest rates by 75 basis points between now and December, up from 65% a week ago, implying policymakers will focus more on weakness in the job market than above-target inflation in Q4.

The University of Michigan's preliminary consumer sentiment index declined to 55.4 in September from 58.2 in August, missing the 58.0 estimate compiled by Bloomberg. Five-year inflation expectations jumped to 3.9% from 3.5%, versus the 3.4% consensus. However, one-year inflation expectations came in at 4.8%, the same as August and in line with guidance in the Bloomberg poll.

"Consumers continue to note multiple vulnerabilities in the economy, with rising risks to business conditions, labor markets, and inflation," Surveys of Consumers Director Joanne Hsu said in a statement. "Likewise, consumers perceive risks to their pocketbooks as well; current and expected personal finances both eased about 8% this month."

Most Treasury yields rose, with the 10-year up 5.7 basis points to 4.07% and the two-year rate 3.5 basis points higher at 3.56%.

West Texas Intermediate crude oil futures rose 0.4% to $62.62 a barrel.

In company news, Paramount Skydance ( PSKY ) is preparing a majority offer backed by the Ellison family for Warner Bros. Discovery ( WBD ) , according to media reports on Thursday, citing people familiar with the situation. Warner Bros. shares surged 17%, the top gainer on the S&P 500 and the Nasdaq. Paramount shares advanced 7.6%, among the leaders on the S&P 500.

BofA Securities adjusted its price target for Lululemon Athletica ( LULU ) to $185 from $210 while maintaining its neutral rating. Shares of Lululemon were trading 3.6% lower, the steepest decline on the Nasdaq.