Stock Market Today: Dow lower, S&P 500 and Nasdaq gain as tech stocks jump, yields rise and PCE inflation data comes in cooler than expected
The S&P 500 and Nasdaq Composite climbed following an August core inflation report of 3.0%, which came in lighter than expected. Technology stocks drove the gains, though the Dow Jones Industrial Average did not participate in the rally. Market optimism regarding inflation was partially offset by rising bond yields, which kept the S&P 500 flat at points during the session. While consumer spending remains robust, the cooler inflation data provides potential breathing room for the Federal Reserve regarding future rate hikes.
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- ✓ The Federal Reserve's preferred inflation gauge showed core inflation at 3.0% in August.
- ✓ The 10-year Treasury yield crossed 5.30%, reaching its highest level since 2002.
- ✓ U.S. inflation in August rose below expectations while consumer spending remained robust.
- ✓ The 30-year Treasury yield hit its highest level since 2002.
What changed
August core inflation fell to 3.0%, coming in below market expectations.
Live updates
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Nasdaq and S&P 500 Rise on Cooler Inflation Data as Dow Declines
The S&P 500 and Nasdaq Composite climbed following an August core inflation report of 3.0%, which came in lighter than expected. Technology stocks drove the gains, though the Dow Jones Industrial Average did not participate in the rally. Market optimism regarding inflation was partially offset by rising bond yields, which kept the S&P 500 flat at points during the session. While consumer spending remains robust, the cooler inflation data provides potential breathing room for the Federal Reserve regarding future rate hikes.
Why it matters
The Federal Reserve uses the PCE gauge as its preferred measure of inflation to determine interest rate policy. Recent Treasury yields reached multidecade highs, including a 10-year yield crossing 5.30% and a 30-year yield hitting its highest level since 2002. This environment creates a tension between tech-driven growth and interest rate pressure.
What is confirmed
- The Federal Reserve's preferred inflation gauge showed core inflation at 3.0% in August.
- The 10-year Treasury yield crossed 5.30%, reaching its highest level since 2002.
- U.S. inflation in August rose below expectations while consumer spending remained robust.
- The 30-year Treasury yield hit its highest level since 2002.
What to watch next
- September payroll data and jobs report
- Micron earnings results
- Federal Reserve decisions on further rate hikes
confidence 90%Sources used for this update (23)
- www.wellsfargoadvisors.com — Stock Market News | Wells Fargo Investment Institute
- www.investors.com — Stock Market Data: See Prices For S&P 500, Nasdaq, Dow Jones, SPDR ETFs
- www.cnn.com — Stock Market Data - US Markets, World Markets, and Stock Quotes
- bullstory.io — US Stock Market Today: S&P 500, Nasdaq and Dow | Bullstory
- vittarthi.com — US Stock Market Today Sep 29, 2026 — S&P 500, Dow & Nasdaq Close
- Reuters — S&P 500 flat as higher bond yields counter tech optimism
- CNBC — Pressure on U.S. Treasurys eases after 30-year yield hits highest level since 2002
- Yahoo Finance — Stock market today: Dow, S&P 500, Nasdaq futures little changed ahead of PCE inflation data
- MarketWatch — Stock Market Today: Dow set for 200-point rise, S&P 500 and Nasdaq to rise ahead of PCE inflation data; Micron results on tap
- finance.yahoo.com — Stock market today: Dow, S&P 500, Nasdaq futures little ...
- WSJ — Stock Market Today: Treasury Yields Slip, Giving Investors Some Reprieve — Live Updates
- CNBC — Fed’s preferred gauge showed core inflation at 3.0% in August, much lighter than expected
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