Updated
Updated · Yahoo Finance · Sep 30
US Stocks Rise as PCE Inflation Hits 3.4%, Cutting October Hike Odds
Updated
Updated · Yahoo Finance · Sep 30

US Stocks Rise as PCE Inflation Hits 3.4%, Cutting October Hike Odds

3 articles · Updated · Yahoo Finance · Sep 30

Summary

  • Wall Street turned higher after the open, with the Dow up 0.1%, the S&P 500 up 0.3%, and the Nasdaq-100 gaining 0.5% after a cooler-than-expected inflation reading.
  • August PCE inflation rose 3.4%, below the 3.7% expected, prompting traders to cut the odds of an October Fed rate hike to roughly 50% from above 70% a day earlier.
  • John Williams reinforced that shift by saying there was "no need for urgency" to raise rates in October, even as inflation worries linger with bond yields elevated and oil holding in the mid-$90s.
  • September hiring still showed some labor-market resilience—ADP said private employers added 90,000 jobs, up from 36,000 in August—while investors also awaited Micron and Conagra earnings for fresh demand signals.

Insights

Why are U.S. stock futures rising even as hot inflation pushes yields higher and strengthens the case for tighter rates?
Can Micron’s earnings prove AI memory demand is strong enough to overcome inflation fears and a higher-rate market?
Is this modest futures rebound the start of resilience, or a fragile pause before sticky inflation hits stocks harder?