S&P 500 dips, Nasdaq higher after data shows moderate inflation rise
The Nasdaq climbed and the S&P 500 dipped following an economic report showing a moderate inflation rise. The Federal Reserve's preferred inflation gauge, the core personal consumption expenditures price index, showed core inflation at 3.0% in August. This reading was much lighter than expected and cooled expectations that Federal Reserve policymakers would hike rates in October. Both major indexes notched their second straight quarterly gains despite the mixed close as markets shuffle into the fourth quarter.
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- ✓ The Federal Reserve's preferred core inflation gauge showed a 3.0% rate in August.
- ✓ The Nasdaq climbed and the S&P 500 dipped following the release of the inflation data.
- ✓ Both the S&P 500 and Nasdaq notched their second straight quarterly gains.
What changed
Stock indexes split direction with the Nasdaq advancing while the S&P 500 dipped after the release of softer-than-anticipated inflation data.
Live updates
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US Stocks Mixed After Inflation Report
The Nasdaq climbed and the S&P 500 dipped following an economic report showing a moderate inflation rise. The Federal Reserve's preferred inflation gauge, the core personal consumption expenditures price index, showed core inflation at 3.0% in August. This reading was much lighter than expected and cooled expectations that Federal Reserve policymakers would hike rates in October. Both major indexes notched their second straight quarterly gains despite the mixed close as markets shuffle into the fourth quarter.
Why it matters
Investors are closely monitoring inflation data to gauge the path of monetary policy as central bank officials weigh potential interest rate hikes. Elevated Treasury yields and oil prices have added to market volatility, while ongoing geopolitical conflicts like the war in Iran continue to exert upward pressure on prices. Traders are simultaneously looking ahead to a crucial upcoming US jobs report.
What is confirmed
- The Federal Reserve's preferred core inflation gauge showed a 3.0% rate in August.
- The Nasdaq climbed and the S&P 500 dipped following the release of the inflation data.
- Both the S&P 500 and Nasdaq notched their second straight quarterly gains.
Still unconfirmed
- Cooler inflation data could buy the Federal Reserve and political figures time before implementing another rate hike.
What to watch next
- The release of the upcoming U.S. jobs report
- Further shifts in Treasury yields and oil prices
confidence 90%Sources used for this update (20)
- reuters.com — US stock futures inch up as yields ease, inflation report looms
- nytimes.com — Fed’s Preferred Inflation Gauge Points to Continued Price Pressures
- CNBC — Fed’s preferred gauge showed core inflation at 3.0% in August, much lighter than expected
- Yahoo Finance — US stock futures slip ahead of inflation report
- Politico — Cooler inflation could buy the Fed, Trump time on another rate hike
- cnn.com — US inflation remained stubborn last month as Iran war continued to lift prices
- cnbc.com — Stock futures are flat as traders eye elevated Treasury yields and brace for jobs report due this week: Live updates
- Yahoo Finance — S&P 500, Dow End Lower As Investors Shrug Off Cooler-Than-Expected Inflation Data — MGM, SPCX, AAPL, TSM In Focus
- Fox Business — Fed's favored inflation gauge cooled in August but remained elevated
- www.theglobeandmail.com — S&P 500 dips, Nasdaq higher after data shows moderate inflation rise
- Reuters — COMMENTARY: Trading Day: Shrugging off a volatile September, markets shuffle into Q4
- Yahoo Finance — A cooler-than-expected reading on Fed’s favored inflation measure tamps down on urgency for rate hikes
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