03:56 PM EDT, 09/12/2025 (MT Newswires) -- US equity indexes traded mixed, while government bond yields rose ahead of the close on Friday as the outlook for interest rate cuts next week remains elevated amid downbeat consumer sentiment and accelerating inflation expectations.

The Nasdaq Composite was up 0.6% to 22,165.1, after scaling a peak of 22,182.34 intraday, and the S&P 500 climbed 0.1% to 6,594.1. The Dow Jones Industrial Average fell 0.4% to 45,911.7. Consumer discretionary, technology, and utilities were among the gainers intraday. Materials and health care led the decliners.

Most Treasury yields rose, with the 10-year up 4.9 basis points to 4.06% and the two-year rate 2.9 basis points higher at 3.56%.

The University of Michigan's preliminary consumer sentiment index declined to 55.4 in September from 58.2 in August, missing the 58.0 estimate compiled by Bloomberg. Five-year inflation expectations jumped to 3.9% from 3.5%, versus the 3.4% consensus, in the Michigan survey. However, one-year inflation expectations came in at 4.8%, the same as August and in line with guidance in the Bloomberg poll.

Ahead of the two-day Federal Reserve's monetary policy meeting next week, markets are pricing a 74% probability that the Federal Open Market Committee will lower interest rates by 75 basis points between now and December, up from 65% a week ago, according to the CME FedWatch Tool. There is zero chance, unchanged from a week earlier, that the Fed will leave rates unchanged on Sept. 17, meaning the policy easing cycle will resume this month.

West Texas Intermediate crude oil futures rose 0.3% to $62.58 a barrel.

In company news, Paramount Skydance ( PSKY ) is preparing a majority offer backed by the Ellison family for Warner Bros. Discovery ( WBD ) , according to media reports on Thursday, citing people familiar with the situation. Warner Bros. shares surged 17%, the top gainer on the S&P 500 and the Nasdaq. Paramount shares advanced 7%, among the leaders on the S&P 500.