Dow Jones Falls 441 Points as Cooler PCE Data Fuels Mixed US Market Close

Mumbai, Oct 1: Wall Street ended Wednesday on a mixed note as investors weighed softer-than-expected inflation data against still-elevated Treasury yields. The Dow Jones Industrial Average dropped 441.25 points, or 0.86%, to 50,908.67, while the S&P 500 slipped 0.25% to 7,651.94. The Nasdaq Composite moved higher, rising 0.24% to 26,861.06, helped by gains in technology stocks. 

The August Personal Consumption Expenditures (PCE) report was a major focus during the session. The softer inflation reading eased some pressure around near-term Federal Reserve rate expectations, although higher bond yields continued to weigh on parts of the market. 

The decline pushed the Dow to its first monthly loss since March. Despite the mixed finish, the S&P 500 and Nasdaq remained on track for their second straight quarterly gains, highlighting the broader strength in US equities despite renewed concerns over inflation, interest rates and rising energy prices. 

Dow Jones Falls 441 Points as Cooler PCE Data Shapes Mixed Close 

The Dow Jones Industrial Average opened at 51,424.84 and closed at 50,908.67, losing 441.25 points or 0.86%. The index touched an intraday high of 51,473.93 and a low of 50,908.67, with the previous close at 51,349.92. The session followed the release of the August Personal Consumption Expenditures price index, which showed inflation cooling more than expected and affected trading across major US equities. The blue-chip index remained under pressure throughout the afternoon despite positive technology performance. 

Movements in key constituents contributed to the index’s decline. Walmart fell 2.68%, Merck declined 2.61%, Procter & Gamble lost 2.02% and UnitedHealth dropped 2.02%. Caterpillar fell 1.95%, Travelers declined 1.81%, Visa lost 1.69% and Goldman Sachs fell 1.58%. Nike declined 1.27%, McDonald’s dropped 1.18%, JPMorgan Chase fell 1.14% and Home Depot lost 1.19%. 3M declined 2.50%, American Express fell 0.39%, Johnson & Johnson lost 0.95% and Boeing declined 0.80%. Sherwin-Williams fell 0.77% and UnitedHealth dropped 2.04%. 

On the positive side, Salesforce gained 1.97%, Apple rose 1.10% and Amazon added 1.10%. Alphabet advanced 0.98%, Microsoft gained 0.80% and Cisco added 0.69%. Nvidia rose 0.51%, Honeywell gained 0.44% and IBM edged up 0.02%. Chevron traded flat at 0.00%. 

The blue-chip index’s decline came as technology shares outperformed, with the Dow’s price-weighted structure amplifying declines in consumer staples, healthcare and financial constituents. The index remained under pressure throughout the afternoon session despite the positive technology performance. The Dow was headed for a quarterly decline and its first monthly loss since March, snapping a five-month winning streak. The index’s intraday range of 565.26 points reflected the volatility during the session. 

S&P 500 Falls 0.25% as Tech Gains Offset Broader Market Weakness Today 

The S&P 500 opened at 7,688.99 and ended at 7,651.94, losing 18.90 points or 0.25%. During the session, the index reached 7,722.88 at its high and 7,651.95 at its low, with the previous close at 7,670.84. Movements across technology and communication services sectors influenced the broader benchmark, while specific constituents recorded notable changes. 

United Therapeutics recorded a gain of 12.55%, FormFactor rose 9.59% and Zeta Global advanced 9.24%. Braze gained 8.47%, JFrog added 7.38% and Doximity rose 7.20%. ACM Research gained 6.97%, Sellas Life Sciences advanced 6.95% and ImmunityBio rose 6.91%. Qualys gained 4.96%, Synopsys rose 4.78% and Cboe Global Markets advanced 5.39%. Cerebras Systems declined 8.87% and Jabil fell 10.04%. 

On the downside, Liquidia plunged 57.19%, Trulieve Cannabis fell 12.17% and Jabil declined 10.04%. BillionToOne lost 9.93%, Cerebras Systems fell 8.87% and MGIC Investment dropped 8.53%. NMI Holdings declined 8.37%, Essent Group fell 8.33% and Hut 8 lost 7.28%. CarMax declined 6.96%, Enact Holdings fell 6.85% and Radian Group dropped 6.47%. Fidelity National Financial declined 6.07% and Moderna fell 6.96%. 

The index’s closing performance came as the cooler inflation print affected market trading, with the S&P 500 posting its second consecutive quarterly gain despite the daily decline. The benchmark’s intraday range of 70.93 points reflected the mixed trading conditions. The index’s decline was concentrated in rate-sensitive sectors, while technology and communication services provided support. 

Nasdaq Gains 0.24% as Cooler Inflation Data Fuels Technology Stock Rally Today 

The Nasdaq Composite opened at 26,892.80 and closed at 26,861.06, marking a gain of 63.52 points or 0.24%. Its intraday high stood at 27,108.20, while the low was 26,861.06, with the previous close at 26,797.54. Technology and growth-oriented shares including Apple gained 1.17%, Microsoft rose 0.80% and Alphabet advanced 0.98%, contributing to the index’s daily performance. 

Intel surged 3.65%, Synopsys gained 4.78% and Adobe rose 2.94%. Intuit added 2.88% and Palo Alto Networks advanced 2.34%. Cadence Design Systems gained 1.86% and Fortinet rose 1.63%. Lam Research added 1.53% and Datadog gained 2.01%. CrowdStrike rose 0.77%, Cisco advanced 0.69% and AMD gained 0.71%. Nvidia added 0.51% and Amazon rose 1.10%. 

On the negative side, Meta fell 1.80%, Netflix declined 1.02% and Broadcom dropped 1.04%. ASML lost 1.26% and ARM Holdings declined 1.30%. Walmart fell 2.68%, Costco dropped 1.54%, PepsiCo declined 1.48% and Starbucks fell 1.52%. Marriott declined 1.61%, Constellation Energy dropped 3.96% and Mondelez fell 0.00%. Applied Materials slipped 0.08%, Texas Instruments fell 0.58% and Qualcomm edged up 0.05%. 

The technology-heavy benchmark responded to the August PCE inflation report during the session, with the Nasdaq Composite posting its second straight quarterly gain. The index’s intraday range of 247.14 points reflected the volatility in technology shares. The Nasdaq’s gain came as investors assessed the implications of cooler inflation for monetary policy and growth-oriented equities. 

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

Russell 2000 Falls 0.05% as Smaller Stocks Track Mixed Market Direction Today 

The Russell 2000 opened at 2,815.70 and closed at 2,806.55, losing 1.37 points or 0.05%. It recorded an intraday high of 2,822.22 and a low of 2,805.72, with the previous close at 2,807.92. Movements among smaller-cap companies, including United Therapeutics rising 12.55%, Rogers Corporation gaining 11.06% and FormFactor advancing 9.59%, contributed to the benchmark’s performance. 

Zeta Global rose 9.24%, Braze added 8.47% and JFrog gained 7.38%. ACM Research rose 6.97%, Qualys advanced 5.01% and Spyre Therapeutics gained 5.09%. ImmunityBio rose 6.74%, Krystal Biotech gained 0.80% and Harmony Biosciences added 1.97%. Credo Technology rose 1.27% and Rambus gained 3.54%. 

On the downside, Liquidia plunged 57.19%, Trulieve Cannabis fell 12.17% and Hut 8 declined 7.28%. Riot Platforms lost 5.94%, MARA Holdings fell 5.63% and Sanmina dropped 3.45%. Enact Holdings declined 6.85%, Radian Group fell 6.47% and Essent Group dropped 8.33%. Be declined 4.90%, Applied Digital fell 4.07% and Cipher Mining lost 4.09%. The inflation data influenced broader trading, with the Russell 2000 recording a modest decline for the session and trading within a narrow range of 16.50 points. 

S&P 100 Gains 0.42% as Large-Cap Technology Shares Drive Index Higher Today 

The S&P 100 opened at 3,835.57 and finished at 3,841.53, recording a gain of 16.10 points or 0.42%. The index traded between 3,835.57 and 3,862.44 during the session, with the previous close at 3,825.43. Movements in major large-cap constituents, including Apple rising 1.10%, Microsoft gaining 0.80% and Amazon advancing 1.10%, contributed to its daily performance as markets responded to the inflation report. 

Alphabet gained 0.98% and Nvidia rose 0.51%. Broadcom declined 1.11% and Meta fell 1.80%. Salesforce gained 1.97%, Cisco added 0.69% and IBM edged up 0.02%. JPMorgan Chase fell 1.14%, Visa declined 1.69% and Goldman Sachs lost 1.58%. Walmart dropped 2.68%, Procter & Gamble fell 2.02% and Johnson & Johnson declined 0.95%. The index’s gain came as technology and communication services shares outperformed broader market segments, with the S&P 100 ending the session at 3,841.53. 

Dow Composite Falls 0.95% as Transportation and Utility Indices Decline Sharply Today 

The Dow Jones Composite Average opened at 16,003.71 and closed at 15,828.20, losing 152.44 points or 0.95%, after moving between 16,021.59 and 15,828.20, with the previous close at 15,980.64. The Dow Jones Transportation Average ended at 19,382.09, compared with an opening level of 19,667.53, representing a 1.37% decline. The transportation index traded between 19,382.09 and 19,695.96 during the session, with the previous close at 19,650.37. 

The Dow Jones Utility Average closed at 1,009.92, changing 0.59% from its opening level of 1,018.63. The utility index traded between 1,009.74 and 1,021.51, with the previous close at 1,015.93. Movements in relevant constituents reflected the inflation data and rate expectations, with transportation stocks under pressure from elevated fuel costs and utilities declining alongside bond yields. The transportation index’s decline came as fuel costs rose alongside crude oil prices, while the utility index’s decline reflected the impact of elevated Treasury yields on rate-sensitive sectors. 

Also Read: How to invest in US stocks 

SOX Falls 0.004% as Semiconductor Shares Trade Nearly Flat During Mixed Session 

The Philadelphia Semiconductor Index opened at 12,665.67 and closed at 12,628.62, losing 0.54 points or 0.004%. Its intraday high was 12,731.10, while the low was 12,555.65, with the previous close at 12,629.16. Semiconductor-related constituents such as Intel gained 3.65%, while ASML fell 1.26% and Broadcom declined 1.04%. AMD rose 0.71% and Micron added 0.13%. Lam Research gained 1.47% and Applied Materials slipped 0.08%. Texas Instruments fell 0.58% and Qualcomm edged up 0.05%. Analog Devices declined 0.42% and KLA Corporation fell 0.82%. Marvell Technology added 0.29% and STMicroelectronics gained 0.99%. Nvidia rose 0.51% and ON Semiconductor declined 0.00%. The sector benchmark’s daily performance came amid mixed trading as investors assessed the inflation data and its implications for rate-sensitive technology shares. The index traded within a range of 175.45 points during the session. 

NYSE Composite Falls 0.69% as Broader Market Tracks Cooler Inflation Data Today 

The NYSE Composite Index opened at 23,740.90 and closed at 23,545.02, recording a loss of 164.57 points or 0.69%. The index traded between 23,740.90 and 23,545.02 during the session, with the previous close at 23,709.60. Movements across various market segments contributed to its performance as the cooler inflation data shaped broader US equity trading. 

Market breadth on the New York Stock Exchange reflected the session’s cautious tone. New 52-week lows outpaced new highs by 262 to 23, while declining stocks exceeded advancers by 1,478 to 1,154. Advancing volume on the NYSE accounted for less than 52% of the total, indicating mixed participation across the exchange. Composite volume equalled 52% of the past 30-day average on the NYSE. The index’s decline came as investors assessed the implications of cooler inflation data for monetary policy and broader economic growth. 

S&P MidCap 400 Falls 0.62% as SmallCap 600 Declines 0.67% During Session 

The S&P MidCap 400 opened at 3,623.70 and closed at 3,595.97, moving 22.50 points or 0.62%, with an intraday range of 3,595.97–3,626.11 and a previous close of 3,618.47. The S&P SmallCap 600 opened at 1,668.89 and ended at 1,654.96, losing 11.16 points or 0.67%, after trading between 1,654.96 and 1,671.86, with a previous close of 1,666.12. 

The two benchmarks reflected movements among mid- and small-cap shares as the inflation report affected the wider market, with both indices recording declines for the session. The S&P MidCap 400 and SmallCap 600 each recorded modest losses amid the broader market’s mixed performance. The mid-cap index traded within a range of 30.14 points, while the small-cap index moved within a range of 16.90 points. 

PCE Inflation Cools to 3.4% as Rate Hike Bets Fall Sharply Today 

The principal market catalyst was the August Personal Consumption Expenditures (PCE) price index, which rose 3.4% year over year, below the 3.7% forecast and matching downwardly revised July data. Core PCE increased 3.0%, below the 3.3% estimate and down from 3.3% in July. Monthly PCE inflation rose 0.3% in August from 0.1% in July, while core prices increased 0.2%. 

Treasury yields remained near multi-year highs, while crude oil prices advanced. The ADP report added to market focus, showing 90,000 private-sector jobs in September, above the 68,000 estimate and August’s 36,000. Base wages increased 3.2% year over year, while gross pay rose 4.7%. 

Cooler inflation reduced the implied probability of an October rate hike to 35–39%, from 51–71% a week earlier. The 10-year Treasury yield briefly declined before returning towards 5.24%, while the 30-year yield climbed to 5.6046%. US crude output reached 13.95 million bpd in July, while demand fell to 20.61 million bpd. 

Also Read: US Stock Market Timings 

VIX Rises 1.56% to 16.29 as Market Volatility Edges Higher During Session 

The CBOE Volatility Index changed 1.56% to 16.29, compared with its previous close of 16.04. The index measures expected volatility in the S&P 500 over the coming 30 days. Its movement during the session coincided with the mixed performance across major US equity benchmarks, as the VIX traded between 15.62 and 16.32 during the day, with an opening level of 15.93. The VIX remained well below its 52-week high of 35.30 and above its 52-week low of 13.38, reflecting continued uncertainty around inflation and monetary policy. 

Technology Leads S&P 500 Sectors With 1.2% Gain as Real Estate Lags 

Performance across the 11 S&P 500 sectors was mixed, with Information Technology leading at 1.2%, followed by Communication Services at 0.8% and Energy at 0.7%. Consumer Discretionary and Materials were flat, while Real Estate and Consumer Staples each declined 0.6%. Financials and Industrials fell 0.5% each, Utilities slipped 0.3% and Health Care declined 0.2%. The moves followed cooler inflation data and changing rate expectations, with technology and communication services gaining as the probability of near-term rate increases declined. 

United Therapeutics Surges 12.55% as Jabil Falls 10.04% 

Among the Magnificent Seven, Apple rose 1.17%, Amazon gained 1.10%, Alphabet advanced 0.98%, Microsoft added 0.80%, Tesla increased 0.54% and Nvidia rose 0.51%, while Meta fell 1.80%. Broader-market gainers included United Therapeutics (12.55%), Rogers Corporation (11.06%) and FormFactor (9.59%). Liquidia fell 57.19%, Trulieve Cannabis declined 12.17% and Jabil dropped 10.04%. 

Core PCE Rises 3.0% as ADP Payrolls Add 90,000 Jobs in September 

The latest economic data showed the core Personal Consumption Expenditures price index at 3.0% year over year, compared with 3.3% expected. The headline PCE stood at 3.4%, while the ADP private payrolls report recorded 90,000 jobs added in September, exceeding the 68,000 consensus estimate and improving from the 36,000 jobs added in August. The releases provided the latest information on inflation and employment during the session. 

Second-quarter GDP growth was revised to 2.2% from 1.5%, reflecting strong consumer spending and business investment. Consumer spending rose 0.6% in August, the biggest monthly jump since March of last year. The goods trade deficit widened to $132.6 billion in August, up 11.5% from the prior month, suggesting trade could remain a drag on economic growth in the third quarter. Base wages rose 3.2% year over year, while gross pay was up 4.7%. Job changers saw even bigger gains. The US economy grew at a solid 2.2% pace from April through June, decelerating from a 2.5% pace from January through March. 

10-Year Treasury Yield Holds Near 5.24% as Rate Hike Odds Decline Today 

The Federal Reserve remained a key market focus as investors reassessed interest-rate expectations. October rate-hike odds fell to 35–39%, from 51–71% a week earlier. The 2-year Treasury yield stood at 4.50%, the 5-year at 4.80%, the 10-year at 5.241% and the 30-year at 5.6046%. The 10-year yield briefly reached 5.2574% before easing, while the 30-year yield rose 1.06 basis points.  

The 10-year yield remained near its highest level since 2007, while the 30-year yield reached its highest since 2002. New York Fed President John Williams said there was “no need for urgency” to raise rates in October. Fed Governor Lisa Cook said inflation remained too high for too long while reaffirming the need to support price stability and labour-market strength. 

Also Read: What Are Fractional Shares? 

Brent Crude Rises to $98.84 as Dollar Weakens After Inflation Data Today 

Brent crude rose 2.8% to $98.84, while WTI gained 2.2% to $91.38, supported by Middle East supply concerns and a drone attack on Saudi Arabia’s East-West pipeline. Brent had gained more than 14% in September, while US crude rose over 6%. Gold fell 0.7% to $4,152.86 an ounce, extending its September decline to 6.6%, as higher energy prices offset support from softer US inflation data. The US Dollar Index declined 0.17% to 101.20. EUR/USD stood at 1.136, USD/JPY at 156.79, and GBP/USD at 1.340, with currency moves reflecting changing inflation and interest-rate expectations. 

The closing session was shaped by cooler August PCE inflation data and a stronger ADP employment report, alongside movements in Treasury yields and crude oil prices. The major US indices finished mixed, while sector, bond, commodity and currency markets recorded the changes outlined above. These figures provide a factual summary of the session and its key market developments. 

Source 

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