02:40 PM EDT, 10/16/2025 (MT Newswires) -- US benchmark equity indexes were lower intraday amid continued trade tensions between Washington and China.

The S&P 500 was down 0.5% at 6,638.9 after midday Thursday, while the Dow Jones Industrial Average and the Nasdaq Composite fell 0.4% each to 46,073.9 and 22,589.7, respectively. Among sectors, financials saw the biggest drop, while technology paced the gainers.

China's recent decision to expand its rare earths export controls is a legitimate move and is meant to prevent rare earths' illegal outflow and misuse, China's Global Times reported Thursday, citing Chinese Ministry of Commerce spokesperson He Yongqian.

The spokesperson reportedly accused the US of "deliberately creating unnecessary misunderstanding and panic" around the move and added that China had informed Washington and other countries about the decision before making the announcement.

He Yongqian indicated that China was open to trade negotiations with the US, the Global Times reported.

When asked by a reporter on Wednesday whether the US and China are heading for a prolonged trade war if they can't reach a deal, President Donald Trump replied, "Well, you're in one now," according to Bloomberg News.

US Treasury yields were lower intraday Thursday, with the 10-year rate falling 6.3 basis points to 3.98% and the two-year rate losing 7.3 basis points to 3.43%.

The Federal Reserve "should" lower its benchmark lending rate by 25 basis points later this month, Governor Christopher Waller said. "Beyond that point, I will be looking for how the solid (gross domestic product) data reconcile with the softening labor market."

West Texas Intermediate crude oil was down 1.5% at $57.42 a barrel intraday.

In company news, F5 (FFIV) shares sank 12%, the worst performer on the S&P 500, after Bloomberg News reported that the company's systems were allegedly breached by state-backed hackers from China. The cybersecurity firm reported the breach Wednesday in a regulatory filing.

United Airlines (UAL) shares dropped 5.9% intraday Thursday, among the steepest drops on the S&P 500. Late Wednesday, the air carrier's third-quarter earnings beat expectations, but revenue missed estimates even as air travel demand improved.

J.B. Hunt Transport Services (JBHT) was the best performer on the S&P 500 intraday Thursday, up 20%. The transportation and logistics company late Wednesday logged an unexpected year-over-year increase in its third-quarter earnings, while revenue came in above market estimates.

In economic news, US homebuilder confidence rose more than expected this month to the highest level since April, despite persistent macroeconomic uncertainty, according to National Association of Home Builders and Wells Fargo data.

"While recent declines for mortgage rates are an encouraging sign for affordability conditions, the market remains challenging," NAHB Chairman Buddy Hughes said.

A US federal government shutdown that has entered its third week delayed a range of economic reports Thursday, including on jobless claims and producer prices.

The Senate was once again unable to advance Republicans' stopgap funding bill, CNN reported Thursday. The split in the chamber appears to be increasing over demands tied to health care, according to the report.

Gold was up 2.6% at $4,309.10 per troy ounce, while silver gained 3.7% to $53.27 per ounce.