04:36 PM EDT, 10/10/2024 (MT Newswires) -- US benchmark equity indexes fell Thursday after official data showed consumer inflation increased at a more-than-projected pace in September.

The S&P 500 dropped 0.2% to 5,780.1, while the Dow Jones Industrial Average lost 0.1% to 42,454.1, both retreating from Wednesday's record closings. The Nasdaq Composite decreased 0.1% to 18,282.1. Real estate saw the steepest decline among sectors, while energy led the gainers.

In economic news, the US consumer price index increased 0.2% last month, the same as in July and August, according to the Bureau of Labor Statistics. The latest reading was ahead of the 0.1% forecast in a Bloomberg-compiled survey. Annually, inflation cooled to 2.4% from August's 2.5%, but was above the 2.3% Wall Street consensus.

"Inflation still has some spark," BMO Capital Markets said.

The odds that the Federal Reserve will reduce its benchmark lending rate by 25 basis points next month rose to 86% Thursday from 80% Wednesday, while the probability of rates remaining unchanged fell to 14% from 20%, according to the CME FedWatch tool.

Last month, the central bank's Federal Open Market Committee cut interest rates by 50 basis points, compared with a Bloomberg-compiled consensus that had indicated a quarter-percentage-point reduction.

The official US producer prices report for September is scheduled to be released Friday.

Weekly applications for unemployment insurance in the US rose more than expected, reaching its highest level since August 2023, government data showed.

The US two-year yield fell 5.1 basis points to 3.97% Thursday, while the 10-year rate was little changed at 4.07%.

Inflation is closing in on the FOMC's 2% target, while the economy is in a "good place" and the labor market is solid, New York Fed President John Williams said.

"Based on my current forecast for the economy, I expect that it will be appropriate to continue the process of moving the stance of monetary policy to a more neutral setting over time," Williams said, adding that policymakers will continue to be data-dependent.

West Texas Intermediate crude oil jumped 3.6% to $75.87 a barrel. "Oil prices gained, underpinned by a spike in fuel demand as Hurricane Milton barreled into Florida, with Middle East supply risks also in focus," D.A. Davidson said in a note to clients.

In company news, First Solar ( FSLR ) shares tumbled 9.3%, the worst performer on the S&P 500, as Jefferies adjusted its price target on the stock to $266 from $271.

Delta Air Lines ( DAL ) issued a weak fourth-quarter earnings outlook amid expectations for subdued travel demand around the US presidential elections in November. The air carrier's bottom-line fell short of market estimates in the prior three-month period, while revenue beat the Street's forecasts. The company's shares closed 1.1% lower.

CrowdStrike ( CRWD ) was the top gainer on the S&P 500 and the second-best on the Nasdaq, up 5.6%. The company and Plurilock Security said they are partnering on an offering to secure critical infrastructure in "democratic nations and economies" against cybersecurity threats.

Major banks JPMorgan Chase ( JPM ) , Wells Fargo ( WFC ) and Bank of New York Mellon ( BK ) are scheduled to report their latest quarterly results Friday, along with asset manager BlackRock (BLK).

Gold rose 0.8% to $2,647.80 per troy ounce, while silver jumped 2.2% to $31.36 per ounce.