US Stocks Extend Decline as S&P 500 Drops for Second Day
US Stocks Extend Decline as S&P 500 Drops for Second Day
The US stock market experienced a second consecutive day of declines on Wednesday, September 24, 2025, as the September rally struggled to find momentum. The Dow Jones Industrial Average fell by 172 points (0.4%), while the S&P 500 dropped 0.3%, and the Nasdaq Composite was down 0.4%. This marks the first time all three major indexes have fallen for two consecutive days since September 2.
Amidst the broader market pullback, the energy sector stood out, buoyed by rising WTI crude oil prices, while tech and communication services continued their retreat. Treasury yields also saw an increase, with the 2-year note rising to 3.6% and the 10-year yield reaching 4.14%.
Analysts are weighing in on the market’s current trajectory. Daniel Skelly, head of Morgan Stanley’s Wealth Management Market Research & Strategy Team, addressed growing “bubble” concerns, particularly regarding tech stocks. While acknowledging that even strong rallies face retracements and ongoing economic uncertainties exist, Skelly suggests such fears may be misplaced. He points out that the current bull market, nearing three years since October 2022, is still well short of the eight-year average seen in five previous bull markets over the last five decades.
Frank Cappelleri, founder of CappThesis, views the current dip as a normal pullback after the market appeared short-term extended. He notes the S&P 500’s 14-day relative strength indicator recently hit “overbought” territory for the fourth time since April, with previous instances leading to minimal drawdowns. Cappelleri advises caution, stating that while there’s no immediate sign this time is different, complacency should be avoided as a larger decline remains a possibility. Investors should closely monitor how the market responds to future dips and whether new highs continue to be achieved, as a failure to do so could signal a shift in momentum.
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