02:25 PM EDT, 09/30/2024 (MT Newswires) -- US benchmark equity indexes were lower intraday as markets assessed the latest remarks by Federal Reserve Chair Jerome Powell.

The Dow Jones Industrial Average was down 0.4% at 42,165.4 after midday Monday, while the S&P 500 and the Nasdaq Composite fell 0.1% each to 5,731.2 and 18,106.1, respectively. Among sectors, materials saw the biggest drop, while communication services paced the gainers.

Powell said monetary policy is "not on any preset course" and that it will move toward a more neutral stance over time if the economy evolves as projected.

"The risks are two-sided, and we will continue to make our decisions meeting by meeting," he said. "As we consider additional policy adjustments, we will carefully assess incoming data, the evolving outlook, and the balance of risks."

Earlier this month, the Fed lowered interest rates by 50 basis points versus a Bloomberg-compiled consensus indicating a 25-basis-point cut.

The US two-year yield rose 6.2 basis points to 3.63% intraday, while the 10-year rate increased three basis points to 3.78%.

Official data are likely to show Friday that the US economy added 180,000 jobs this month, compared with Wall Street's views for a gain of 130,000, UBS said in a note e-mailed Monday. The consensus is for growth of 146,000 jobs in a survey compiled by Bloomberg. UBS expects the unemployment rate to hold steady at 4.2%, in line with the Street's projections.

"The main upside risk to the unemployment rate projection we see is that household survey employment has improved, and risen in three straight months," the brokerage wrote. "We may be due for some weakness."

Texas manufacturing activity unexpectedly improved in September into shallower contraction territory, while output turned negative, according to the Dallas Fed.

On Friday, government data showed US consumer spending eased more than expected in August, while the Fed's preferred inflation metric rose year over year, but met the Street's estimates.

"Taken alone, the headline improvement in the (personal consumption expenditure) is enough to justify a further (25-basis-point) cut in November now less than six weeks away," Stifel said in a Monday note to clients. "Although, another month of questionable inflation data and/or a stronger-than-expected employment report this Friday could embolden the more hawkish members."

West Texas Intermediate crude oil rose 0.3% to $68.36 a barrel intraday.

In company news, Boeing ( BA ) shares were down 2.5%, the steepest decline on the Dow. The plane maker's pay-related deal talks with the International Association of Machinists and Aerospace Workers broke off and no further dates for negotiations were scheduled, the union said Friday in a post on X.

Micron Technology ( MU ) saw the biggest drop on the Nasdaq and among the steepest on the S&P 500 intraday Monday, down 3.6%.

CVS Health's ( CVS ) leadership is facing a challenge by shareholder Glenview Capital in what could be the start of a push to oust management, news outlets reported, citing unnamed sources. CVS shares were up 2.8%, the top gainer on the S&P 500.

Gold was down 0.3% at $2,660.10 per troy ounce, while silver lost 1.2% to $31.45 per ounce.