US Markets End September Mixed
On Wednesday, the last session of September, Wall Street's major indexes ended unevenly as climbing Treasury yields dampened investor mood even though inflation figures came in cooler than anticipated. The Dow Jones Industrial Average dropped 443.87 points, or 0.86%, settling at 50,906.05, and the S&P 500 shed 19.30 points, or 0.25%, to close at 7,651.54. In contrast, the Nasdaq composite added 63.52 points, or 0.24%, finishing at 26,861.06.[S1]
Market participants reviewed the personal consumption expenditures price index, the inflation gauge the Federal Reserve favors, which rose 3.4% from a year earlier in August, undershooting the 3.7% consensus forecast. Core inflation, stripping out food and energy, registered 3%, also beneath projections. Neither measure fell back to the Fed's 2% objective. Alongside the inflation data came employment figures that beat expectations: payroll processor ADP reported private employers hired 90,000 workers in September, above the 68,000 anticipated.[S1]
After the inflation data, traders scaled back wagers on a rate increase in October. CME Group's FedWatch tool showed the odds of a quarter-point move dropping to roughly 35% from 51% the prior day. Focus now shifts to Friday's September jobs report, with nonfarm payrolls forecast to rise by 84,000. Separately, the yield on the 10-year US Treasury benchmark climbed about 4.3 basis points, reaching a 24-year peak of 5.306%.[S1]
European Stocks Close Lower
European equities ended Wednesday's session in negative territory as investors tracked Middle East events, their potential effects on energy costs and inflation, and stubbornly high bond yields. The Stoxx Europe 600 benchmark slipped 0.5% to 634.89. The UK's FTSE 100 eased 0.29% to 10,606, and Germany's DAX 40 lost 0.79% to 25,199.19. France's CAC 40 shed 0.89% to 7,964.51, while Italy's FTSE MIB pulled back 0.84% to 51,371.98.[S1]
