Traders at work at the New York Stock Exchange on September 30, 2026.
new york stock exchange
of S&P500 It fell on Wednesday in late September, even though new U.S. economic data showed slowing inflation last month.
The broader market index fell 0.25%, giving up gains from earlier in the trading day to close at 7,651.54. The S&P 500 index rose nearly 0.7% at one point during the session. of Nasdaq Composite It rose 0.24% to end at 26,861.06. of Dow Jones Industrial Average It fell by 0.86% (443.87 points) to 50,906.05.
The personal consumption expenditure price index rose at an annual rate of 3.4% in August, down from 3.7% in the previous month. Economists surveyed by Dow Jones expected inflation to hold steady at 3.7%. Even more encouraging was core PCE, which excludes food and energy, which rose 3% year-on-year, down from 3.3% in the previous month and also below economists’ expectations.
of 10 year treasury The stock ended Wednesday’s session higher than the previous day, last up about 4 basis points to 5.298%. The benchmark yield exceeded the trading high of 5.3%. of 30 year treasury The yield last rose nearly 5 basis points to 5.642%.
“I think growth is what[traders are looking at]because it doesn’t seem like inflation expectations are really blowing away,” Rob Howarth, senior investment strategy director at U.S. Bank Asset Management Group, told CNBC.
Markets focused on employment data due to be released on Friday. Nonfarm payrolls are expected to increase by 84,000 in September. This is about half the increase in August on a seasonally adjusted basis.
The odds that the Fed will raise interest rates fell on Wednesday. Traders are pricing in a 35% chance of a 15 percentage point hike next month, according to CME Group’s FedWatch tool. This was down from about 51% the day before. Despite Wednesday’s weak inflation data, traders still expect another rate hike in December.
“While today’s inflation numbers are slightly better than expected, strong labor and GDP numbers suggest this announcement is unlikely to derail consensus expectations for further rate hikes by the end of the year,” Adam Hetz, global head of multi-asset and portfolio managers at Janus Henderson Investors, said in an email Wednesday.
“The probability of three rate hikes by the middle of next year is still 75%, so we don’t think the market is completely behind the curve yet, but it may not be as pressing an issue as feared,” said Howarth of U.S. Bank Asset Management Group.
Strong private sector data offset weaker inflation reports as ADP said 90,000 jobs were added in September, well above the economists’ consensus estimate of 68,000.
Wednesday marked the end of the month and third quarter. In September, the S&P 500 fell 0.5% and the Dow Jones Industrial Average fell 4.3%. The Nasdaq outperformed, gaining 1.9% during the month. In the third quarter, the S&P 500 rose 2% and the Nasdaq rose 2.5%. The Dow Jones Industrial Average underperformed, falling 2.7% in the quarter.
