US stocks gyrate as cool inflation tempers rate bets and Treasury yields rise

  • US stocks ended mixed on the third quarter's final trading day after softer August PCE inflation reduced October rate-hike expectations.
  • The Dow fell 443.87 points, or 0.86%, to 50,906.05, while the Nasdaq gained 63.52 points, or 0.24%.
  • The S&P 500 and Nasdaq recorded second straight quarterly gains, while the Dow posted its second quarterly decline in three.

US stocks finished a volatile Sept. 29 session mixed on the final trading day of the third quarter after August Personal Consumption Expenditures inflation rose 3.4% from a year earlier, below economists' 3.7% estimate, reducing expectations of a Federal Reserve rate increase in October. The Nasdaq Composite gained 63.52 points, or 0.24%, to 26,861.06, while the S&P 500 fell 19.30 points, or 0.25%, to 7,651.54 and the Dow Jones Industrial Average dropped 443.87 points, or 0.86%, to 50,906.05. The S&P 500 and Nasdaq posted their second consecutive quarterly gains, while the Dow recorded its second quarterly decline in three. Higher oil prices tied to the US-Iran war, elevated diesel costs and rising longer-term Treasury yields continued to fuel concerns about inflation and borrowing costs. Microsoft, Apple and Nvidia lifted technology shares; Hewlett Packard Enterprise rose after announcing a $1.2 billion Vultr deal, while Moderna fell after a Citigroup downgrade. Private employers added 90,000 jobs, and second-quarter GDP growth was revised to a 2.2% annualized rate.

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