Updated
Updated · CNBC · Sep 29
S&P 500 Rises 0.4% as US PCE Inflation Slows to 3.4%
Updated
Updated · CNBC · Sep 29

S&P 500 Rises 0.4% as US PCE Inflation Slows to 3.4%

3 articles · Updated · CNBC · Sep 29

Summary

  • U.S. stocks climbed on Sept. 30 after August inflation came in cooler than expected, with the Dow up 0.1%, the S&P 500 gaining 0.4% and the Nasdaq adding 0.6%.
  • PCE inflation slowed to 3.4% from 3.7%, while core PCE eased to 3.0% from 3.3%—both below forecasts and enough to pull Treasury yields lower.
  • The 10-year Treasury yield fell to 5.23% after touching its highest level since 2007, easing one of the main pressures that had kept the S&P 500 down 0.2% for September through Tuesday.
  • Fed hike odds for next month dropped to 35% from 51% a day earlier, though traders still expect another increase in December as strong labor and GDP data keep policy tightening on the table.
  • ADP reported 90,000 private-sector jobs in September versus a 68,000 estimate, while Micron, Nvidia, Alphabet and Robinhood helped lead gains into the final session of both September and the third quarter.

Insights

If inflation is cooling, why are many investors still bracing for another Fed rate hike and stubbornly high long-term yields?
Are AI spending and heavy bond issuance creating a new force that keeps Treasury yields elevated even as price pressures ease?
Robinhood’s new AI trading tools sent its stock higher, but can agentic investing really help users without amplifying costly mistakes?