Update: Equity Indexes Fall Intraday as Fed's Waller Says More Rate Hikes Needed

02:07 PM EDT, 10/08/2026 (MT Newswires) -- (Updates with latest market prices and developments.) US benchmark equity indexes were lower intraday Thursday as Federal Reserve Governor Christopher Waller said further policy tightening may be needed to tame inflation. The Nasdaq Composite fell 1.2% to 27,220.7 after midday Thursday. The S&P 500 declined 0.7% to 7,750, while the Dow Jones Industrial Average dropped 0.2% to 51,084.6. Energy led gainers among sectors, while technology declined the most. The US central bank will likely have to raise interest rates further to bring inflation back to the 2% target faster, assuming there are no surprises in upcoming economic data, Waller said Thursday. However, the timing of any additional policy tightening is flexible, he said. Last month, the Federal Open Market Committee lifted its policy rate by 25 basis points, marking the first hike in just over three years as it sought to bring inflation down to its 2% target. Markets are currently pricing in an 83% probability that the central bank will keep its benchmark rate steady later this month, with the remaining odds in favor of a 25-basis-point hike, according to the CME FedWatch tool. President Donald Trump said Thursday that the US will not attack Iran before the midterm election. It followed reports that Trump and his national security team were weighing large-scale military operations against Iran. Brent crude oil was up 3.2% to $103.42 a barrel intraday Thursday, while West Texas Intermediate gained 2.9% to $90.84. The 10-year US Treasury yield was down 3.8 basis points at 5.24%, having hit the highest since 2002 on Wednesday. The two-year rate slipped 0.8 basis points to 4.76%. In company news, Starbucks (SBUX) has explored a takeover of Chipotle Mexican Grill (CMG) and has worked with advisers in recent months on a potential acquisition bid, the Financial Times reported Thursday, citing sources. Starbucks' shares fell 4.3%, while Chipotle rallied 7.3%, the most on the S&P 500. PepsiCo (PEP) lowered its full-year earnings growth outlook Thursday amid projected margin pressures in its North American business, while the beverage and snacks giant's fiscal third-quarter results topped market expectations. Shares of the company were up 2.3%. Viatris (VTRS) agreed to acquire Pacira BioSciences (PCRX) in an all-cash deal worth about $1.65 billion as it looks to strengthen its non-opioid pain management portfolio. Pacira's stock surged 44%, while Viatris' shares were down 1.9%. Spot gold gained 0.5% to $4,133.37 per troy ounce, while silver decreased 1.9% to $59.13 per ounce.