Dow Edges 0.11% Higher, S&P 500 Gains 0.27%, Nasdaq Jumps 0.45% As August PCE Inflation Cools to 3.4%

Mumbai, Sept 30: US stocks opened higher on Wednesday as softer-than-expected August inflation data eased some immediate pressure on markets from elevated Treasury yields and expectations of further Federal Reserve rate increases. At the opening bell, the Dow Jones Industrial Average rose 74.9 points, or 0.15%, to 51,424.84, the S&P 500 gained 18.1 points, or 0.24%, to 7,688.99, while the Nasdaq Composite advanced 95.3 points, or 0.36%, to 26,892.80. 

The early gains followed a two-session decline across the major US indexes and came after the Personal Consumption Expenditures (PCE) price index showed that inflation increased 3.4% year-on-year in August, below the 3.7% increase economists had expected. Core PCE inflation, which excludes food and energy, rose 3.0%, compared with expectations of 3.3%. 

The market was also digesting stronger employment and economic growth data. Private-sector employers added 90,000 jobs in September, compared with 36,000 in August, while revised second-quarter US gross domestic product (GDP) growth came in at an annualised 2.2%, up from the earlier estimate of 1.5%. 

US Stocks Open Higher as Inflation Slows to 3.4% 

The softer inflation reading provided the main early catalyst for Wall Street on the final trading day of September. The headline PCE price index increased 0.3% month-on-month in August, below the 0.4% forecast, while the annual rate remained at 3.4%. Core PCE increased 0.2% during the month and held at 3.0% annually. 

Also Read: What Is the New York Stock Exchange (NYSE)?  

The figures were closely watched because the PCE price index is the Federal Reserve’s preferred inflation measure. Although the annual inflation rate remained above the central bank’s 2% target, the August reading was below expectations. 

The latest data came after US equities had weakened in the previous session as Treasury yields climbed. On Tuesday, the S&P 500 closed at 7,670.84, the Nasdaq Composite at 26,797.54, and the Dow at 51,349.92. The three indexes fell by roughly 0.2%, 0.1% and 0.3%, respectively, as higher long-term borrowing costs remained a focus. 

At the opening session on Wednesday, the three benchmarks moved in the opposite direction. By around 9:35 a.m. Eastern Daylight Time, the Nasdaq Composite stood at 26,918.68, up 121.14 points or 0.45%, while the S&P 500 was at 7,691.21, higher by 20.37 points or 0.27%. The Dow was at 51,406.78, up 56.86 points or 0.11%. 

Nasdaq Gains 0.45% as Technology Stocks Lead Early Moves 

The technology-heavy Nasdaq Composite showed the strongest gain among the three major indexes in the latest opening-session data. It opened at 26,892.80, compared with Tuesday’s previous close of 26,797.54, and traded between 26,885.35 and 26,969.29 during the reported period. 

Technology and semiconductor shares accounted for several of the early positive moves. Nvidia rose 1.58%, while Apple gained 0.98% and Microsoft advanced 0.86%. Intel climbed 3.05%, Qualcomm gained 1.62%, Micron rose 0.84%, and Advanced Micro Devices increased 0.84%. 

Also Read: How to invest in US stocks 

Other technology-related stocks also moved higher. Palantir Technologies gained 1.13%, Palo Alto Networks advanced 1.08%, Datadog increased 1.58%, and Alphabet’s Class A and Class C shares rose 1.80% and 1.76%, respectively. 

The technology-led movement was not uniform. Meta Platforms declined 2.06%, Tesla fell 1.75%, while Amazon was little changed at 0.06% higher. Netflix declined 0.22% and Adobe slipped 0.04%. 

The Nasdaq’s early performance therefore reflected gains across several major technology and semiconductor companies alongside declines in some large communication and consumer technology names. 

S&P 500 Rises 0.27% as Energy Shares Gain 

The S&P 500 opened at 7,688.99 and later stood at 7,691.21, up 20.37 points or 0.27%. Its reported intraday range was 7,688.99 to 7,701.20. 

Several large technology stocks supported the index. Nvidia gained 1.53%, Apple rose 1.02%, and Microsoft increased 1.13%. Intel climbed 3.66%, while Palo Alto Networks advanced 1.88%. Salesforce rose 1.69%, and Alphabet’s two share classes gained 1.45% and 1.47%. 

Energy stocks also recorded gains as crude prices moved higher. Exxon Mobil rose 1.13%, Chevron gained 0.66%, ConocoPhillips advanced 0.54%, Marathon Petroleum increased 1.88%, and Valero Energy climbed 2.58%. 

Financial stocks were more mixed. JPMorgan Chase gained 0.04%, while Visa declined 1.14%, Mastercard fell 0.84%, Morgan Stanley slipped 0.91%, and Goldman Sachs declined 0.50%. 

Healthcare shares also showed a mixed pattern. Eli Lilly gained 0.19%, AbbVie rose 0.61%, and Amgen increased 0.54%, while UnitedHealth declined 1.01%, Abbott Laboratories fell 1.04%, and Gilead Sciences dropped 0.99%. 

Dow Edges 0.11% Higher Despite Mixed Blue-Chip Moves 

The Dow Jones Industrial Average opened at 51,424.84, before standing at 51,406.78, up 56.86 points or 0.11% in the reported opening session. The index traded between 51,361.43 and 51,473.93. 

Several Dow constituents were higher. Nvidia gained 1.36%, Microsoft rose 1.09%, Apple increased 0.90%, and Alphabet gained 1.80%. Boeing rose 0.84%, while Chevron advanced 0.81%. 

The gains were partly offset by weakness in several other components. Visa declined 1.26%, UnitedHealth fell 0.97%, and Merck declined 0.59%. Travelers fell 0.41%, while Nike dropped 0.37%. 

Consumer companies were also mixed. Coca-Cola gained 0.52%, Procter & Gamble rose 0.16%, and PepsiCo increased 0.64%, while McDonald’s declined 0.25%. 

The opening movement therefore left the Dow modestly higher, with technology, communications and selected industrial and energy stocks offsetting weakness in several financial, healthcare and consumer names. 

10-Year Treasury Yield Stays Near 5.24% as Inflation Cools 

Treasury markets remained central to the opening-session move after the softer inflation figures. The 10-year Treasury yield stood around 5.236%, close to its highest level since June 2007, according to the market data cited in the reports. 

The yield had moved above 5.29% on Tuesday, its highest level since 2007, adding pressure to US equities. The latest inflation data led Treasury yields to retreat modestly from those levels. 

The bond market remains closely connected to expectations for Federal Reserve policy because higher Treasury yields influence borrowing costs and the valuation of financial assets. 

Also Read: What is NASDAQ Composite 

Market pricing for an October Federal Reserve rate increase also changed after the PCE release. The latest reports put the probability of a quarter-point October increase at around 35%, down from 51% a day earlier. Other market measures had shown the probability substantially higher a week earlier. 

New York Federal Reserve President John Williams had also indicated that there was no urgency to raise rates again in October, adding to the focus on incoming economic data. 

The softer inflation report did not remove the possibility of another rate increase later in the year. Inflation remained above the Federal Reserve’s 2% target, while employment and economic growth data continued to show resilience. 

Private Payrolls Rise 90,000 As September Hiring Rebounds 

US private-sector employment provided another important data point for the opening session. Employers added 90,000 jobs in September, according to the ADP employment report, compared with 36,000 jobs in August. 

The September increase was also above the 68,000 consensus estimate cited in the market reports. Hiring was supported by areas including education and healthcare, while workers continued to record wage growth. 

Base wages increased 3.2% year-on-year, while gross pay rose 4.7%. The September hiring increase followed a three-month slowdown in private-sector job creation. 

The employment figures arrived alongside the softer inflation reading, creating a mixed economic picture in which price pressures were below expectations while labour-market activity remained firm. 

The combination of inflation and employment data was particularly relevant because Federal Reserve officials are weighing whether additional interest-rate increases are required while monitoring economic growth and labour-market conditions. 

US GDP Revised To 2.2% On Strong Consumer Spending 

The latest US GDP report also showed that economic activity remained firm during the second quarter. Real GDP grew at an annualised 2.2% rate between April and June, up from the previous estimate of 1.5%. 

Consumer spending was a significant contributor to the revised growth figure. Spending, which accounts for more than two-thirds of the US economy, expanded at a revised 3.8% rate, compared with 3.4% previously. 

Business investment also remained strong, including spending linked to artificial-intelligence infrastructure. Real final sales to private domestic purchasers increased at a revised 4.6% rate. 

The revised GDP data therefore showed stronger underlying economic activity than the earlier estimate had indicated. At the same time, inflation remained elevated and household confidence had weakened, creating a combination of solid economic output and continuing price pressures. 

The GDP revision was released alongside the PCE inflation figures and ADP employment data, giving markets several major indicators on the final trading day of the third quarter. 

US Goods Trade Deficit Widens to $132.6 Billion In August 

The US goods trade deficit also widened sharply in August. The shortfall increased 11.5% to $132.6 billion, according to the US Commerce Department’s Census Bureau, compared with the $115 billion deficit economists had forecast. 

The trade data represented another major economic release during Wednesday’s session and was being assessed alongside GDP, inflation and employment figures. 

The increase in the goods deficit reflected a rise in imports and added another element to the economic data being released as the third quarter ended. 

The data arrived as US markets were also monitoring energy prices, Treasury yields and developments surrounding US-Iran relations, all of which had contributed to volatility during September. 

Oil Rises Above $90 as US-Iran Developments Remain Focus 

Oil prices moved higher during Wednesday’s opening session. US West Texas Intermediate crude futures were recently up about 2.1% at $91.25 a barrel, while Brent crude, the international benchmark, advanced around 0.9% to $103.50. 

Another market report cited Brent at around $103.16 and West Texas Intermediate at approximately $90.20 earlier in the session. 

Oil prices remained linked to developments surrounding the conflict involving Iran and stalled US-Iran discussions. Brent was reported to be on track for a monthly increase of roughly 14%, while WTI was headed for a monthly gain of about 4%. 

Higher crude prices remained relevant to the inflation outlook because energy costs can feed into the broader prices paid by consumers and businesses. This kept the interaction between oil, inflation and Federal Reserve policy in focus even after the softer August PCE reading. 

Boeing Gains 2.1% After $20 Billion Navy Fighter Contract 

Boeing shares were among the notable individual stock movers in the opening session after the company secured a contract valued at approximately $20 billion to develop the US Navy’s next-generation fighter aircraft. 

The F/A-XX programme is intended to replace the Navy’s existing F/A-18 Super Hornet fleet. Boeing’s shares gained around 2.1% in the latest market data after rising more than 2% in premarket trading. 

Northrop Grumman, which had competed for the contract, declined around 3.5% in early trading. The programme is expected to involve the development of a sixth-generation fighter with advanced systems and capabilities, with the aircraft expected to enter service in the 2030s. 

The contract represents another major fighter programme for Boeing following its earlier US Air Force fighter award. 

Robinhood Gains 2.2% as New Trading Products Expand 

Robinhood Markets also moved higher in early trading, gaining around 2.2% after announcing new active-trading products. 

The company said its new tools include Robinhood Agents, an artificial-intelligence-based product designed to analyse markets, build strategies and execute trades on behalf of users. The company also announced plans to allow trading in certain US stocks around the clock during weekends. 

The stock movement came as the broader market continued to focus on the role of artificial intelligence in financial services and technology. 

Micron Earnings Become Key Test for AI Chip Demand 

Micron Technology remained one of the major technology stocks in focus ahead of its results after the market closed. 

The company was expected to provide a fresh indication of demand for memory products used in artificial-intelligence infrastructure. Micron shares were up less than 1% ahead of the earnings release. 

The earnings report comes after a strong period for memory and AI-related shares. Market data showed Micron up 0.84%, while other semiconductor companies also moved higher, including Intel at 3.66%, Qualcomm at 1.63%, Advanced Micro Devices at 0.65%, and Nvidia at 1.53% in the S&P 500 heatmap. 

Micron’s results therefore represented one of the key corporate events scheduled for the end of the third quarter. 

Spyre, HPE And MongoDB Lead Early Stock Gainers 

Several individual stocks posted larger percentage gains during the opening session. Spyre Therapeutics rose 9.52% to $92.79, making it the leading percentage gainer in the supplied market data. Hewlett Packard Enterprise gained 7.72% to $66.25, while MongoDB increased 7.11% to $361.15. 

Other notable gainers included TORM, up 7.03%, RUM Group, up 6.13%, and Rogers Corporation, up 6.06%. monday.com rose 5.54%, while ChipMOS Technologies gained 5.52% and FormFactor advanced 5.47%. 

Firefly Aerospace rose 5.25%, Hims & Hers Health increased 4.84%, and Cboe Global Markets gained 3.72%. The moves occurred across multiple sectors, including technology, biotechnology, financial services, aerospace and healthcare. 

Trulieve, Cerebras and Hut 8 Lead Early Decliners 

The opening session also produced sizeable declines among individual stocks. Trulieve Cannabis fell 13.34% to $10.76, while Cerebras Systems declined 7.01% to $181.27. Hut 8 dropped 6.58% to $86.75, and Constellation Energy declined 6.06% to $248.54. 

Other notable decliners included Cal-Maine Foods, down 5.71%, Woori Financial Group, down 5.62%, and Moderna, down 4.86%. 

Shinhan Financial Group fell 4.40%, Northrop Grumman declined 4.22%, and Vistra fell 3.45%. Fair Isaac dropped 3.70%, while NRG Energy declined 3.24%. 

The declines reflected a mixture of company-specific developments and sector-level movements rather than a uniform direction across the broader market. 

September Ends with Mixed Index Performance Across Wall Street 

Wednesday was the final trading day of September and also marked the end of the third quarter. The major indexes entered the session with different monthly performances. 

Through Tuesday’s close, the Dow was down 3.5% for September, while the S&P 500 was down 0.2%. The Nasdaq Composite was up 1.6% for the month. 

The Dow was also heading towards the end of a five-month winning streak. Despite September’s declines, the S&P 500 and Nasdaq remained on track for their second consecutive quarterly gain, while the Dow was heading towards a quarterly decline. 

The previous session had been affected by rising long-term Treasury yields, with the 10-year yield reaching levels not seen since 2007. The latest inflation data changed the direction of yields during Wednesday’s early trading. 

The major indexes therefore entered the final session of the quarter with different monthly and quarterly trajectories. 

AI Stocks Move Differently as Meta Falls 2.06% 

Artificial-intelligence-linked companies remained an important part of the market’s opening moves, although performance across the group was mixed. 

Nvidia rose 1.53% in the S&P 500 and 1.58% in the Nasdaq 100, while Microsoft gained 1.13% in the S&P 500 and Apple increased 1.02%. Palantir gained 0.93%, Palo Alto Networks rose 1.88%, and CrowdStrike increased 1.44%. 

At the same time, Meta Platforms declined 1.92% in the S&P 500, while its Nasdaq 100 move was -2.06%. Tesla fell 1.53% in the S&P 500 and 1.75% in the Nasdaq 100. 

The differing moves came as markets continued to assess AI-related spending, technology valuations and the wider economic environment of higher Treasury yields and elevated energy prices. 

US markets opened higher on 30 September 2026 after August PCE inflation came in below expectations, while ADP employment and revised GDP data showed continued economic activity. Treasury yields, oil prices, Federal Reserve rate expectations, corporate earnings and individual stock developments remained key market factors during the final session of September. 

Source 

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