05:00 PM EDT, 09/25/2025 (MT Newswires) -- US equities dropped for a third session in a row on Thursday as traders evaluated fresh economic data, including reports showing declines in existing-home sales and jobless claims.

The Nasdaq Composite and the S&P 500 fell 0.5% each to close at 22,384.7 and 6,604.7, respectively. The Dow Jones Industrial Average was 0.4% lower at 45,947.3. Barring energy and technology, all sectors were in the red, led by health care.

In economic news, existing-home sales in the US declined 0.2% sequentially in August, the National Association of Realtors said. The consensus was for a 1.5% drop in a Bloomberg-compiled survey.

"Home sales have been sluggish over the past few years due to elevated mortgage rates and limited inventory," NAR Chief Economist Lawrence Yun said. "However, mortgage rates are declining and more inventory is coming to the market, which should boost sales in the coming months."

Weekly applications for unemployment insurance reached their lowest level in two months, government data showed Thursday, with Oxford Economics saying the report offers "some assurance" that labor market conditions are not weakening.

"Claims data support our forecast for the Federal Reserve to remain hold at its October meeting and to delay the next rate cut until December," Oxford said.

The odds of the Fed cutting interest rates by 25 basis points again next month fell to about 88% Thursday from 92% Wednesday, according to the CME FedWatch tool.

The US economy grew at an annual rate of 3.8% in the second quarter, faster than a 3.3% pace projected previously, according to a final estimate by the Bureau of Economic Analysis. The consensus was for the growth rate to be left unrevised, according to a survey compiled by Bloomberg.

"An even stronger growth profile in (the second quarter) led by additional strength in consumption and investment reiterates the storyline of a solid economy despite fiscal policy uncertainty, relatively elevated price pressures and a reduced pace of hiring," Stifel said.

Priscilla Thiagamoorthy, senior economist at BMO Capital Markets, said that the economy continues to hold up well, "even as we anticipate some slowdown ahead."

US Treasury yields were higher, with the two-year rate rising 5.8 basis points to 3.67% and the 10-year rate adding 2.4 basis points to 4.18%.

Kansas City Fed President Jeff Schmid said inflation in the US continues to be "too high while the labor market, though cooling, still remains largely in balance." Schmid said he sees the current monetary policy stance as "only slightly restrictive, which I think is the right place to be."

Earlier this week, Fed Chair Jerome Powell said policymakers face a "challenging situation," with near-term risks to inflation tilted to the upside and those to employment leaning downside. Fed Vice Chair for Supervision Michelle Bowman said recent data indicate that policymakers are at a "serious risk of already being behind the curve" in addressing a weakening labor market.

West Texas Intermediate crude oil was up 0.5% at $65.30 a barrel in Thursday late-afternoon trade

In company news, CarMax ( KMX ) shares sank 20%, the worst performer on the S&P 500, after the used-vehicle retailer logged an unexpected drop in profit and sales for its fiscal second quarter.

Oracle (ORCL) launched an investment-grade bond sale worth $18 billion Wednesday, Bloomberg News reported. The cloud computing company's shares were down 5.6%, among the steepest declines on the S&P 500.

Intel ( INTC ) is seeking an investment from Apple ( AAPL ) to bolster its business as part of a turnaround bid, Bloomberg reported Wednesday, citing unnamed sources. Intel ( INTC ) shares were up 8.9%, the top gainer on the S&P 500, while Apple ( AAPL ) rose 1.8%.

HSBC Holdings ( HSBC ) said a trial conducted with tech giant IBM ( IBM ) to explore the use of quantum computers in optimizing bond trading yielded "promising" results. IBM ( IBM ) shares were up 5.2%, the biggest gainer on the Dow and second-best performer on the S&P 500, while HSBC's ( HSBC ) US-listed shares fell 1.4%.

Gold was up 0.2% at $3,777 per troy ounce, while silver gained 2.8% to $45.43 per ounce.