On September 30, 2026, the S&P 500 dropped 0.25%, closing at 7,651.54, after initially increasing by nearly 0.7% during the trading session. This decline occurred despite the release of U.S. economic data indicating a slowdown in inflation. The Nasdaq Composite gained 0.24%, ending at 26,861.06, while the Dow Jones Industrial Average fell 0.86%, losing 443.87 points to close at 50,906.05.
Read More
The personal consumption expenditures (PCE) price index for August increased at an annual rate of 3.4%, down from 3.7% in July, while core PCE, excluding food and energy, rose 3% year-over-year, also lower than the previous month’s 3.3%. Economists had anticipated inflation to remain steady at 3.7%.
In the Treasury market, the 10-year note rose approximately 4 basis points to 5.298%, with the benchmark yield peaking above 5.3%. The 30-year Treasury yield climbed nearly 5 basis points to 5.642%. Rob Haworth, senior investment strategy director at U.S. Bank Asset Management Group, noted that traders are more focused on growth data than inflation expectations.
Investors are turning their attention to upcoming jobs reports, with non-farm payrolls projected to increase by 84,000 in September, a reduction from August's figures. The odds of a Federal Reserve rate hike have softened, with a 35% probability now for an increase next month, down from 51% the previous day. Adam Hetts, from Janus Henderson Investors, stated that while inflation data shows improvement, strong labor and GDP figures suggest the central bank may still pursue further rate hikes this year.
The S&P 500 saw a 0.5% decline in September, while the Dow lost 4.3%. In contrast, the Nasdaq rose 1.9% during the month. Over the third quarter, the S&P 500 rose 2%, and the Nasdaq gained 2.5%, whereas the Dow experienced a 2.7% loss.