US Stock Market Today: Dow Jones, S&P 500 Fall While Nasdaq Ends Higher
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US stocks ended mixed on September 30 after softer PCE inflation initially lifted equities, but higher Treasury yields later weighed on the Dow and S&P 500. Micron, Boeing and Hewlett Packard Enterprise were among stocks in focus.
US stock market today: US stocks ended mixed on Wednesday, September 30, as gains following softer-than-expected inflation data faded later in the session amid higher Treasury yields. The Dow Jones Industrial Average fell 443.87 points, or 0.86%, while the S&P 500 declined 19.30 points, or 0.25%. The Nasdaq Composite, however, gained 63.52 points, or 0.24%.
The S&P 500 closed at 7,651.54, the Dow Jones at 50,906.05 and the Nasdaq at 26,861.06. The three indexes had moved higher earlier in the session after the latest inflation data reduced expectations of an October interest-rate hike, but rising bond yields put pressure on stocks later in the day.
The Personal Consumption Expenditures (PCE) price index rose 3.4% in August from a year earlier, below economists' estimate of 3.7%. Core PCE inflation rose 3% year-on-year, also below expectations.
The US economy also grew at an annualised 2.2% pace in the second quarter, according to the final GDP reading. The stronger growth data helped keep Treasury yields elevated and limited the impact of the softer inflation report on equities.
Dow Jones, S&P 500, Nasdaq Performance
Index | September 30 Close | Daily Move |
|---|---|---|
Dow Jones | 50,906.05 | -0.86% |
S&P 500 | 7,651.54 | -0.25% |
Nasdaq Composite | 26,861.06 | +0.24% |
The Nasdaq posted a gain for the session, helped by technology stocks. Microsoft, Apple and Nvidia were among the large-cap technology names that gained, lifting the S&P 500 technology sector.
The S&P 500 and Nasdaq recorded their second consecutive quarterly gains. The Dow, however, declined for the quarter.
Why US Stocks Moved Today
The initial move higher came after the August PCE inflation report showed a slower increase than economists had expected. Headline PCE rose 3.4% year-on-year, while core PCE increased 3%.
The inflation reading reduced expectations of an October rate hike. The probability of a 25-basis-point increase fell to around 35%, from roughly 51% a day earlier, according to CME FedWatch data.
However, the market gave back much of its early gains as Treasury yields remained high. The 10-year US Treasury yield rose to around 5.306%, its highest level in 24 years, according to Anadolu Agency.
The stronger US growth data also added to the pressure from higher yields. Final second-quarter GDP growth was revised to 2.2% on an annualised basis, helped by consumer spending and business investment linked to artificial intelligence infrastructure.
CFRA Research chief investment strategist Sam Stovall said the market had been forming a bullish pattern and that a positive catalyst could trigger a move higher.
Boeing, Northrop Grumman, Micron Shares In Focus
Boeing was among the major stocks in focus after the Pentagon selected the company to develop the US Navy's next-generation stealth fighter. The contract is worth $20 billion. Boeing beat Northrop Grumman for the programme.
Boeing shares rose earlier in the session, while Northrop Grumman fell after the contract announcement.
Hewlett Packard Enterprise gained after raising its long-term revenue growth forecast for its networking business. The company also announced a $1.2 billion deal with cloud provider Vultr.
Moderna shares fell after Citigroup downgraded the stock to sell from neutral.
Micron Technology was also in focus as the memory-chip maker reported its quarterly results after the closing bell. The company's earnings were being watched for signs of demand for memory products and continued spending on AI infrastructure.
Wall Street Ends September With Mixed Performance
The September session ended with the three major US indexes showing different performances. The S&P 500 fell 0.25% on the final trading day, while the Dow dropped 0.86%. The Nasdaq gained 0.24%.
For the month, the S&P 500 declined around 0.5% and the Dow fell about 4.3%, while the Nasdaq gained around 1.9%, according to Barron's.
Bond-market moves remained a major factor for equities during September, with higher Treasury yields putting pressure on stocks even as technology shares continued to benefit from the AI investment theme.
US Market Cues For Indian Stocks
The mixed close on Wall Street will be among the global cues for Indian markets on Thursday.
The Dow's decline and the S&P 500's fall, along with the Nasdaq's gain, leave technology stocks and US bond yields as key areas to track. The softer PCE inflation reading has reduced expectations of an October Fed rate hike, although stronger economic data and elevated Treasury yields remain important for the interest-rate outlook.
Indian IT stocks will remain sensitive to moves in US technology shares and the dollar. Investors will also track Asian markets, US stock futures and crude oil prices for fresh cues during the Indian trading session.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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