Wall Street concluded the week on a downbeat note as investors grappled with the latest release of the Personal Consumption Expenditures (PCE) Index, the Federal Reserve’s favored measure of inflation. The August figures revealed that the “core” PCE, excluding volatile food and energy prices, experienced a 3.9% year-on-year increase, marking the lowest level in nearly three years and down from July’s 4.2%.
The S&P 500 index closed 0.3% lower, while the Dow Jones Industrial Average and the tech-centric Nasdaq Composite also relinquished earlier gains, finishing 0.5% and 0.1% lower, respectively. These shifts on Friday served as the culmination of a challenging month for major indexes, witnessing declines ranging from 3% to 5%. The markets were impacted by skyrocketing oil prices and apprehension over the anticipated Federal Reserve interest rate hike later this year.
In a somewhat relieving development, the bond market saw a retreat in yields for 10-year Treasuries, a move not witnessed in over 15 years. The specter of an imminent government shutdown loomed large, as it appeared increasingly likely that lawmakers would fail to meet the Saturday midnight deadline to avert such an occurrence.
Amidst this broader market movement, individual stocks exhibited notable activity. Athletic apparel giant Nike captured significant attention after unveiling encouraging earnings figures and expressing confidence in sustained demand from the Chinese market. This development provided a glimmer of positivity in an otherwise challenging climate.
The week concluded on Wall Street with major stock indices finishing in the red, as investors grappled with concerns over inflation and a looming government shutdown. The close of September marked a temporary respite from the downward momentum observed in recent weeks. Market observers will be closely monitoring the ensuing economic data releases and political developments, as they will significantly shape the investment landscape in the coming weeks.
Source: Yahoo Finance