S&P 500 dips, Nasdaq higher after data shows moderate inflation rise
SPY•The S&P 500 fell 0.25% and the Nasdaq rose 0.24% as August PCE inflation came in at 3.4% year over year, below the 3.7% estimate. Both indexes recorded a second straight quarterly gain.
1. Inflation and rates
The Commerce Department said the Personal Consumption Expenditures Price Index rose 3.4% annually in August, below economists’ 3.7% estimate. Market expectations for a Fed rate hike of at least 25 basis points at its October meeting fell to about 37%, from roughly 51% in the prior session.
2. Index performance
The Dow fell 0.86% to 50,906.05, the S&P 500 lost 0.25% to 7,651.54 and the Nasdaq gained 0.24% to 26,861.06. The S&P 500 and Nasdaq recorded their second straight quarterly advances; the Dow posted a quarterly decline.
3. Other market details
Second-quarter GDP growth was revised to a 2.2% annualized rate. Private employment rose by 90,000 jobs in September after a downwardly revised 36,000 increase in August, according to ADP. Nine of the 11 major S&P sectors ended lower, while technology was the best-performing sector, up 0.6%.
