05:12 PM EDT, 09/25/2024 (MT Newswires) -- The Dow Jones Industrial Average and the S&P 500 fell on Wednesday from their all-time closing records the previous day, as traders analyzed the latest economic data.

The Dow dropped 0.7% to 41,914.8, while the S&P 500 fell 0.2% to 5,722.3. The Nasdaq Composite was little changed at 18,082.2. Energy saw the steepest drop among sectors, while consumer staples and communication services were little changed. Only utilities and technology closed higher.

In economic news, new-home sales in the US declined in August as median prices at the national level decreased sequentially, government data showed.

"Lower mortgage rates and more plentiful supply relative to existing homes should support modest growth in new home sales over the rest of 2024 and in 2025," Oxford Economics said.

Weekly mortgage applications in the US advanced to their highest level since July 2022 amid a flurry of refinance activity as the 30-year fixed rate for conforming loan balances fell for the eighth straight week, the Mortgage Bankers Association said.

The US 10-year yield rose 5.6 basis points to 3.79% Wednesday, while the two-year rate gained 4.3 basis points to 3.56%.

Last week, the Federal Reserve lowered interest rates by 50 basis points versus a Bloomberg-compiled consensus indicating a 25-basis-point cut. On Tuesday, the Conference Board said US consumer confidence in September fell at the sharpest pace in about three years, while the annual inflation outlook edged higher.

"Market participants appear increasingly divided over the size of the Fed's next policy adjustment," Stifel said in a Wednesday note to clients. "While the latest consumer confidence data has upped expectations for a second-round (50-basis-point) cut in November, a backup in inflation expectations, as well as upside risks to the upcoming (personal consumption expenditure) report have others betting on a smaller quarter-point reduction, or potentially even a pause."

West Texas Intermediate crude oil dropped 2.4% to $69.83 a barrel.

Commercial crude stockpiles in the US decreased by 4.5 million barrels to 413 million barrels through the week ended Friday, the Energy Information Administration said. The consensus was for a decline of 1.4 million barrels, according to a Bloomberg poll.

In company news, General Motors ( GM ) shares fell 4.9%, while Ford Motor ( F ) lost 4.1%, among the biggest drops on the S&P 500, following downgrades by Morgan Stanley.

Amgen ( AMGN ) saw the steepest decline on the Dow and the Nasdaq and was the second-worst S&P 500 performer, down 5.5%.

Southwest Airlines ( LUV ) is planning to reduce its Atlanta flights to 381 weekly flights from 567, according to media reports. The carrier's shares dropped 4.6%, among the steepest declines on the S&P 500.

Separately, Southwest ( LUV ) said late Tuesday that activist investor Elliott Investment Management has refused to engage with the company despite its efforts "to reach a constructive resolution." Elliott previously sent an open letter to Southwest ( LUV ) shareholders, saying it may call a special meeting as soon as next week to vote over the airline's leadership and board changes.

Hewlett Packard Enterprise ( HPE ) was the second-best performer on the S&P 500, up 5.1%, as Barclays upgraded the company to overweight from equal-weight and adjusted its price target to $24 from $20.

Gold rose 0.2% to $2,682.90 per troy ounce, while silver fell 0.9% to $32.13 per ounce.